Waitrose’s parent company, the John Lewis Partnership has warned that delays to its planned rental housing development in Reading could lead to fewer affordable homes being delivered.

The retailer’s advisers said that further requests for funding or long hold-ups in planning approval would make the scheme unviable, according to The Telegraph.

The comments were made in a letter to Reading councillors by consultants DS2, who said the scheme already costs more to build than it is worth on paper.

The partnership, which represents both John Lewis and Waitrose, has committed to making 10% of the proposed 170 flats affordable and available at lower rents. However, this is conditional on planning being granted “within a reasonable timeframe”.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

The retailer first submitted plans almost a year ago – to regenerate a brownfield site in Reading Borough, in an aim to transform the former distribution warehouse into rental housing. However it is understood it has now since cut the number of homes from 215 to 170 after discussions with local stakeholders.

DS2 also warned that any extra requests for funding, such as for schools or healthcare services, could lead to a “reconsideration of the affordable housing final commitment”.

The project is part of John Lewis Partnership’s wider push into build-to-rent homes, with other developments also planned in West Ealing and Bromley. Those schemes have faced their own delays, with John Lewis launching an appeal in West Ealing and facing opposition in Bromley.

In response to concerns from local NHS officials about increased pressure on GP services, the council previously said it was working with John Lewis to achieve the “right outcome” for residents, which “may include additional funding”.

A John Lewis spokesperson said: “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.”

The warning comes as developers across the UK continue to highlight challenges in delivering affordable housing amid high build costs and lengthy Section 106 negotiations.”

In 2023, John Lewis Partnership was warned that its flagship property scheme will face “extreme challenges” in making profit, over its then newly announced plans to build 428 new flats above a Waitrose in West Ealing and 353 in Bromley, with ambition to deliver 35% affordable housing on each scheme.