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(Sharecast News) - John Lewis Partnership is to exit its loss-making affordable homes business, the employee-owned retailer said on Wednesday, blaming a recent shift in economic conditions.
The venture, which started in 2020 with ambitions to 10,000 build-to-rent homes over the following decade, is now being withdrawn as part of the company's refocus on retail operations.
When it launched, then chair Sharon White revealed targets to generate two-fifths of group revenue from non-retail operations.
"Our rental property ambition was based on a very different financial environment: one with more stable investment returns, lower borrowing costs and more affordable costs to build homes," JLP said.
"Unfortunately, the current climate - higher interest rates, inflationary pressures and a more cautious property market - has meant the model no longer meets the Partnership's investment criteria."
Since its launch, JLP hadn't built a single home, but achieved three planning applications to build around 1,000 homes across sites in Bromley, Reading and other southern locations, as well as the management of third-party BTR homes across four sites.
The company said it was to fulfil its existing management contracts at four BTR sites as part of a "responsible transition out of the business".
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