John Lewis Partnership is moving forward with its flagship build-to-rent project outside of London—a bold and carefully recalibrated development in Reading that reflects the challenges and opportunities of the current construction climate.
Originally unveiled in September 2024, the proposal aimed to transform a dormant former John Lewis distribution centre near Reading’s Oracle shopping centre into 215 rental homes. The ambitious £80 million scheme—part of a wider partnership with asset manager Abrdn—was designed to include communal gardens, co-working spaces, fitness areas, and sustainable features. Construction was expected to begin in 2026, with homes ready by 2028.
In response to community feedback and planning discussions, the scheme was later revised. The updated plan now features a single eight-storey building comprising 170 apartments: 79 one-bedroom, 81 two-bedroom, and 10 three-bedroom units. A commitment to 10% affordable housing remains in place, alongside improvements to façade materials and the inclusion of nearly 10,000 square feet of landscaped public space.
However, the project’s progress has not been without tension. In August 2025, viability consultants DS2 submitted a letter to Reading Borough Council, warning that rising construction costs, planning delays, and potential financial obligations—such as Section 106 contributions—could jeopardize the inclusion of affordable homes. The letter advised that unless planning permission is secured “within a reasonable timeframe,” the development may no longer be financially capable of delivering the affordable housing originally promised.
This situation mirrors growing concerns across the housing sector. Materials inflation, interest rate pressures, and tightening planning regulations are squeezing developers—particularly in the build-to-rent sector, which often relies on upfront capital to deliver high-specification, long-term rental assets. Even well-capitalised organisations like John Lewis are finding themselves navigating the trade-offs between community expectations and commercial viability.
The Reading project is part of a broader £500 million joint venture between John Lewis Partnership and Abrdn to deliver up to 1,000 rental homes across sites in Bromley, West Ealing, and Reading. The Bromley development has already secured planning approval for 320 units, while the largest of the three—in West Ealing—recently received the green light for 430 new homes above a Waitrose supermarket. That scheme, which faced objections over height and affordability, was ultimately approved by a government planning inspector citing urgent housing need.
For John Lewis, these projects represent more than property development. They are a strategic pivot aimed at reducing reliance on retail and generating long-term income through residential assets. Although the company originally aimed to make 40% of its profits from new ventures such as housing and financial services, that target has since been moderated. Nonetheless, the intent remains: to be a long-term landlord, providing high-quality, well-managed rental homes under the John Lewis name.
The Reading scheme, while still under review, highlights the realities of modern urban development. It offers a test case in balancing regeneration with social responsibility, and ambition with economic constraints. As the UK grapples with housing shortages, cost inflation, and policy uncertainty, projects like this will be closely watched—not just by industry insiders, but by communities, councils, and investors alike.