UK construction industry not at risk from pivoting at-risk businesses

Construction sector diversification continues in 2025 as major retailers, most notably John Lewis, expand into housebuilding. Their build-to-rent projects are no longer speculative; they’re actively delivering homes across the UK. But five years after the announcement, key questions remain: is this a one-off or the start of broader competition within the construction sector?

What’s Happened Since 2020?

Back in 2020, John Lewis announced a bold move into housing. Fast forward to 2025, and here’s where things stand:

• Over 1,000 homes are now in development across London and the South East.
• Flagship projects include:
  • West Ealing: 428 BTR flats approved (2025).
  • Bromley & Reading: schemes moving ahead.
• All units follow a build-to-rent model, with John Lewis acting as landlord.

These homes are built above or around existing Waitrose stores, making use of land the company already owns.

What Makes This Move Possible?

Not every retailer can do what John Lewis is doing. Their ability to build rests on three main factors:

Most retailers don’t have this combination.

Insight from Industry Expert: Alex Tremlett

Alex Tremlett (Commercial Director at Insight Data) commented at the time:

“Retailers who own property in prime areas can pivot into residential construction. But without ownership, it’s much harder. It all comes down to who controls the bricks and mortar.”

That’s still true in 2025. With high build costs, tight margins, and regulatory hurdles, entry into construction remains a major commitment.

What About the Rest of the Retail Sector?

Despite early speculation, we haven’t seen a flood of other high-street names entering construction. Here’s why:

• Most lease their properties, so they can’t develop them
• Build-to-rent schemes require long-term capital investment
• Few have the experience or appetite for planning, zoning, and project delivery

Instead, the market has seen investment from private equity and housing associations.

What This Means for Construction Companies

Should contractors, suppliers, or housebuilders be worried? In short:

• No – This is not widespread.
• Yes – If more retailers copy the model, it could reshape parts of the BTR market.

At present, John Lewis remains an outlier. The majority of work is still handled by traditional firms.

How Insight Data Helps You Track These Shifts

If you supply to the construction sector or want to reach emerging players, Insight Data’s live databases give you an advantage.

Relevant Insight Data Tools:

📌 View the Construction Database →
📌 Learn about Salestracker →

Common Questions in 2025

Will more retailers follow John Lewis?
Unlikely. They lack the same land bank, funds, and internal capability.

Are new competitors entering construction from other sectors?
Some are trying, particularly in hospitality, but most fail to make it commercially viable.

What’s the biggest opportunity now?
Targeting growing mid-sized developers and BTR specialist firms, Insight Data tracks.

Ready to Target the Right Companies?

John Lewis entering construction may be headline-worthy, but traditional firms still dominate the market. If you want to identify the real opportunities for retail-backed developers, mid-sized housebuilders, or contractors expanding into BTR, you need the right data.

Speak to our team to access live construction intelligence, filter prospects using Salestracker, or request a demo of our specialist databases.

📞 Call us on 01934 808 293
📩 Email hello@insightdata.co.uk
👉 Or make an enquiry online to get started.