The John Lewis Partnership (JLP) is to become one of Britain’s largest build-to-rent landlords, with plans to deliver 10,000 homes over the next decade in a fundamental shift away from ‘selling things’.
Katherine Russell (pictured), director of build-to-rent at JLP, said the retailer aims to “transform the UK’s private rental homes sector into something a little more personal – with great service at its core”.
The employee-owned business has committed £500 million through its joint venture with Aberdeen Group, an Edinburgh-based global investment company, to establish what would be a leading industry player alongside the likes of Grainger PLC and Dandara Living.
As its core business struggles, the move will help JLP hit its target of 40% of profits coming from non-retail activities by 2030.
Competitive advantage
The retailer claims it brings significant competitive advantages to the landlords sector, including: established local presence through its existing stores, procurement scale, customer service expertise and, crucially, funding that will allow it to keep assets over the long term rather than having to seek quick returns.
It has also developed a number of innovative features, such as using waste heat from Waitrose stores to reduce utility costs, as well as access to a huge range of furnishings.
We are incredibly excited about the future of the build-to-rent sector.”
Svitlana Gubriy, Head of Indirect Real Assets, Aberdeen
Svitlana Gubriy from Aberdeen Group said: “We are incredibly excited about the future of the build-to-rent sector, which is undergoing a transformative shift with the fundamentals of demand and supply supporting steady cash flows”.
JLP first entered the BTR market in 2022 and now manages more than 800 properties across Birmingham, Leeds and Leicester, with Ealing (main image) set to be the latest addition to a pipeline that includes planning permission for nearly 1,000 homes across West Ealing, Bromley and Reading. Construction begins at multiple sites in 2025, with the first residents expected to be in by 2027.