John Lewis Partnership has warned it could reduce the number of affordable flats at its Reading build-to-rent scheme if planning delays and extra funding demands continue to make the project financially unviable.
The retailer had already scaled back the development from 215 to 170 homes following local concerns over pressure on local services.
John Lewis committed to making 10% of the flats affordable and available at lower rents, but advisers have told Reading councillors that the scheme “would cost more to build than it is worth on paper.”
They added the company “would not be able to viably provide any affordable housing” unless the council approves the plans “within a reasonable timeframe.”
Building consultants DS2, who reviewed the project for John Lewis, also warned that further requests for funding contributions—such as for local services—would trigger a “reconsideration of the affordable housing final commitment.”
The scheme was first submitted almost a year ago and faces delays partly due to lengthy planning negotiations. Developers across England now wait an average of 515 days—almost a year and a half—for Section 106 agreements, which govern contributions towards infrastructure like schools, roads, and affordable homes.
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John Lewis has faced local opposition, including NHS officials concerned about the impact on GP services. The company is working with Reading Council to agree payments to support local infrastructure.
Earlier this year, John Lewis reduced the scheme’s size to 170 homes, including 79 one-bed, 81 two-bed, and 10 three-bed flats.
The retailer also made design changes and increased green space, aiming to create a scheme that “benefits the community,” said John Lewis Partnership director of build-to-rent Katherine Russell.
The Reading project is one of three rental home schemes pursued by John Lewis. 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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