The John Lewis Partnership has officially submitted a planning application to construct hundreds of residential flats at its former delivery depot in Reading, emphasizing its goal to expand its presence as a significant landlord.

If granted approval by Reading Borough Council, the partnership plans to invest £80 million to demolish the currently unused distribution warehouse, which ceased operations two years ago, and replace it with 215 rental flats.

Despite the forthcoming departure of chairman Dame Sharon White in February raising questions about the retailer’s housing strategy, the planning application reflects the John Lewis Partnership’s commitment to establishing itself as a prominent player in the UK rental market.

Katherine Russell, director of build-to-rent at John Lewis, stated, “We have collaborated closely with Reading Council’s planning officers, local residents, and various organizations to devise a project that will enhance the community by transforming an inactive industrial site into a vibrant residential area.”

She added, “This rejuvenation of brownfield land presents a remarkable opportunity to deliver a substantial number of homes to help alleviate the housing demand in Reading. These residences will not only be developed by us but will also be managed by our team, ensuring a high-quality service and the assurance that these homes will not be sold off, a common practice in the rental sector.”

The proposed development will feature a mix of one, two, and three-bedroom flats, alongside amenities like a gym, co-working spaces, two new gardens, and enhanced public areas.

The existing warehouse, constructed in the 1990s, has remained unused since 2021, when John Lewis relocated its customer collection point to its Reading store.

The partnership’s journey toward becoming a landlord began five years ago with White’s vision of generating 40% of annual profits from non-retail ventures by 2030. However, this target has since been abandoned, and the partnership reaffirmed earlier this year its intention to focus primarily on its retail operations, while still aiming to diversify its portfolio.

In its quest to develop 10,000 rental homes, primarily on surplus land it controls, the partnership recently obtained planning permission for 353 rental flats above the Waitrose store in Bromley, south London. Additionally, the redevelopment project for the Waitrose location in Ealing, west London, has encountered delays, prompting the partnership to appeal to expedite the planning timeline.

While the Bromley project was approved, local councillors expressed concerns about insufficient parking and affordable housing—issues that may arise in the Reading proposal as well.

Due to the depot’s proximity to Reading’s city center and train stations, the retailer is dedicated to creating a “car-free” development, with only 10% of the flats designated for “affordable” rental rates.

Pending approval from Reading Borough Council, construction is anticipated to commence in early 2026, with the first residents expected to move in by 2028.