Department store and grocery group John Lewis Partnership may cut the number of affordable flats at its build-to-rent scheme in Reading as planning delays and funding demands threaten the viability of the project.
John Lewis had committed to making 10% of the flats affordable and available at a lower rent. However, the retailer’s advisers have told local councillors the scheme “would cost more to build than it is worth on paper”, The Telegraph reported.
John Lewis had already reduced the scheme from 215 to 170 homes in light of concerns over pressure on local services.
The retailer’s advisers warned that John Lewis “would not be able to viably provide any affordable housing” unless the council approved the plans “within a reasonable timeframe”.
They also cautioned that more requests for funding contribution, such as for local service, would lead to “reconsideration of the affordable housing final commitment”.
Since unveiling its plans, John Lewis has made design changes and increased the amount of green space with the ambition of delivering community benefits.
The Reading scheme is one of three being pursued by the partnership, which are seen as new income streams alongside its established businesses. Other developments in West Ealing and Bromley have faced planning setbacks and local opposition before eventual approval.
A John Lewis spokesman told The Telegraph: “We’re committed to providing as much affordable housing for Reading as is viable. We’re working constructively with the Council on our plans to transform this brownfield site with high-quality rental homes.”
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