John Lewis gets green light to build hundreds of homes in West Ealing
Plans by the John Lewis Partnership (JLP) to redevelop Waitrose West Ealing have been given the go-ahead by Ealing Council after a successful appeal by the retail giant.
The application, which has been in the planning system for nearly two years, is part of JLP’s long-term strategy to diversify its income streams via build-to-rent.
The plans will create 428 build-to-rent homes, including 83 affordable rented homes, as well as an updated Waitrose store and car park.
“We’re pleased that the Inspector has found in favour of the multi-million-pound investment that will create vital new housing and a modernised Waitrose store to serve a community we have been part of for decades,” Katherine Russell, director of Build-to-Rent at JLP, said.
“The decision underpins a clear policy commitment to supporting brownfield development close to key transport hubs,” Russell added.
The site’s development fits neatly into the government’s ambition to tap into brownfield sites for its ambitious goal of 1.5m houses by 2029.
In January, the Chancellor also revealed new plans to build houses near commuter train stations to kickstart economic growth.
JLP also has plans to transform one of its disused warehouses in Reading into an £80m residential complex with over 200 houses, as well as plans for 350 homes in Bromley.
All the developments are build-to-rent – purpose built, institutionally owned and professionally managed residential blocks of flats.
Build-to-rent undergoing a ‘transformative shift’ for John Lewis
The build-to-rent sector in the UK has undergone massive growth in the last few years, although still only represents 2.3 per cent of the total rental market.
Svitlana Gubriy, head of indirect real assets at Aberdeen – which has a £500m joint venture with JLP – said she was “incredibly excited” about the future of the build-to-rent sector.
“[It’s] undergoing a transformative shift… With the fundamentals of demand and supply supporting steady cash flows and sustaining long-term value of the sector, the focus is increasingly shifting on fostering community engagement and addressing local needs,” she said.
The government already encourages the market through the National Planning Policy Framework (NPPF) and the London Plan, and promotes public-private partnerships to boost the sector.
The UK’s biggest landlord, Grainger, has also voiced its support for build-to-rent, with £1.3bn and 4,565 homes in its BTR pipeline.
“The need for rental homes is well-identified, but very few local planning authorities yet have dedicated build-to-rent policies,” Ian Fletcher, director of policy at the British Property Federation, said.
“There is a huge amount of investment interested in helping fund the chronic undersupply of new rental homes,” Fletcher added.
Property giant Savills, however, has previously warned that chronic under-investment may be a future roadblock for build-to-rent, with £300bn needed to meet future levels of demand.
“What’s becoming increasingly important is social value with investors dedicating their efforts to develop residential projects that are not only financially successful but also cater to the needs of future generations.
“The recent developments in Ealing serve as a testament to this pivotal trend,” Gubriy said.