# John Lewis pulls plug on affordable homes venture after costs soar

By Tom Hawkins — 2026-02-26

Tom Hawkins, head of residential development at Hamptons, said: “It’s no surprise to see entrants like John Lewis pull the plug given how dramatically conditions have shifted since they announced they were entering the market in 2020.

“Build costs have risen by over 50 per cent, interest rates remain high, and lending is tight, as a result, overall market sentiment has become markedly cautious.

“Even established players are struggling – when a major developer such as Landsec states that none of its schemes is currently viable – despite a pipeline of 9,000 units – it’s a clear signal of how strained the development landscape has become.

“Without intervention, viability constraints will continue to stall or kill off new schemes.

“We need faster and more reliable planning decisions, and an overhaul of cumulative policies and assistance in bringing the cost of capital back in line with returns that are realistically achievable in residential development.”

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