In 2020 John Lewis Partnership (JLP) revealed ambitious plans to become one of the largest private landlords in the UK. Their goal was to create 10,000 build-to-rent homes, furnish them, and manage the properties. It was an innovative idea, and quickly got a lot of positive attention. However, last month we got the sad news they would be scraping the plan. Let’s have a closer look here, then if you want help with investment properties in Bromley, you only need to call us.

Plans

JLP showed a lot of commitment to their build-to-rent plan. In the last few years they got planning permission for three projects – Bromley, West Ealing, and Reading. These proposals would have delivered nearly 1,000 new homes.

Notably, the projects were to redevelop existing stores. For example, plans for the Bromley South Waitrose got permission in 2024. The proposal was to demolish the current store, build 353 new homes, and build a new supermarket.

Tough economic conditions

While the signs for JLP’s plans were positive, there have been issues behind the scenes. Crucially, finance partner Aberdeen reportedly has been unable to raise funds for the projects. As a result, the decision not to proceed has now been made. It’s disappointing, especially if you were considering investment properties in Bromley or West Ealing.

It has been a very challenging period for the UK economy in the last few years. There have been significant changes, including higher interest rates, construction costs, inflation, and cost of living increases. Ultimately, the property market is more cautious, particularly for investors. It makes it challenging to finance projects.

Strategy change

While JLP’s initial strategy was to diversify away from retail, they have since had a change of focus. In fact, they made a CEO change in 2024. A new plan to refocus on core brands was chosen. They have been quite successful here. In fact, they recently said they would pay staff a bonus for the first time since 2022. This follows a strong year with a rise in profits and sales.

Although the news that JLP is scrapping the scheme is disappointing, there is a silver lining. They will continue to work with local authorities in Bromley, Ealing, and Reading to finalise the negotiations for the redevelopments. Then, they will consider what to do with each of the sites. This could lead to sales to property developers to allow them to complete the projects.

Speak to us about investment properties in Bromley

Finefair Ltd can provide a range of outstanding services if you need help with property investment in London. We’re flexible, offering support for all kinds of investors. This can include solutions if you’re new to investing or if you have a large portfolio. From finding new assets in the right areas to arranging strategies to manage them and guaranteed rent, we can give you everything you need.

So, get in touch today if you want to discuss investment properties in Bromley or other areas in London. We’re happy to share our experience and ensure you make the right decisions.