John Lewis Ditches Build-to-rent Model for Waitrose Scheme

Move could mean that new application needs to be submitted

The development viewed from across the tracks at West Ealing Station. Picture: JLP

February 26, 2026

John Lewis Partnership has announced that it is to abandon its build-to-rent programme including the scheme to redevelop the Waitrose store in West Ealing.

Although it has said that it intends to continue working with local authorities on the schemes that it already has permission for, planning experts believe it is likely that a new application would need to be submitted for the local project rather than amendments being made to the existing one.

The move marks a clear break from the strategy pursued under former chair Sharon White and reflects a shift in direction under the company’s new chief executive, Jason Tarry, who has prioritised stabilising the core retail business over large-scale diversification into property.

The Partnership confirmed that it is withdrawing from a £500 million plan to build almost 1,000 rental units across three sites including Bromley and Reading as well as West Ealing. It said the decision was driven by a fundamental change in economic conditions, with higher interest rates, inflationary pressures and a more cautious investment market making it impossible for its investment partner, Aberdeen, to raise the necessary capital. Aberdeen acknowledged that its fundraising difficulties reflected the realities of a challenging UK property market between 2022 and 2025.

In a letter to stakeholders, Katherine Russell, director of the build-to-rent programme, said the ambition had been based on a very different financial environment, one with lower borrowing costs and more stable returns, and that the company had taken the difficult decision to withdraw from the sector entirely.

The planned frontage along Alexandra Road. Picture: JLP

The West Ealing scheme was one of the most high-profile and controversial elements of the build-to-rent strategy. The outline planning application, approved in May 2025 following a public inquiry, allowed for a mixed-use redevelopment including a replacement Waitrose supermarket, commercial space, a new public square and 428 build-to-rent flats in towers of 19, 17, 15 and 10 storeys. The site sits beside the Great Western Main Line and the Elizabeth Line, and the scale of the proposed towers prompted strong objections from local residents, who argued that the development would overshadow nearby homes and overwhelm the surrounding area. Ealing Council also objected to the low level of affordable housing proposed. Despite this, the planning inspector granted outline permission, placing weight on the policy support for build-to-rent in metropolitan town centres and the contribution the scheme would make to housing supply.

The Partnership’s withdrawal now raises questions about whether the approved scheme can proceed in its current form. The outline permission remains valid, but it is tied to a specific mix of uses and a development model that John Lewis no longer intends to deliver. The inspector’s decision was based in part on the benefits associated with build-to-rent, including long-term tenure stability, professional management and the contribution to housing choice. A shift to private sale, shared ownership or another tenure would require the council to reassess viability, affordable housing contributions and the overall planning balance.

Some aspects of the scheme could be amended without starting again. Minor changes, such as internal reconfiguration or adjustments to the tenure mix, could potentially be made through a variation of conditions. However, more substantial changes would require a new planning application. This would be necessary if a future developer sought to alter the height or massing of the towers, change the land-use mix, remove or significantly alter the replacement supermarket, or revise the affordable housing offer in a way that affected policy compliance.

Liberal Democrat Councillor Jon Ball, Spokesperson for Planning and Regeneration, said, "I welcome the news that John Lewis Partnership have abandoned their 20-storey tower proposal for West Ealing Waitrose, which was inappropriately high for the area and massively exceeded the local plan maximum. Ealing's Labour-controlled council failed to determine this application and then failed to oppose it at the planning appeal.

"As the Liberal Democrat opposition, we demand that Ealing Council deal with any future application for this site properly, and in accordance with the Local Plan."