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As housing developers struggled with rising house prices and raising capital, Tesco's were planning to build hundreds of homes centred around Tesco's stores. Britain's biggest supermarket has drawn up plans to build a number of these “mini-villages” in the South East. As well as a series of smaller mixed homes, shops and leisure developments in Ipswich and the North East.
Tesco's foray into property development has been met with much scepticism from critics
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who are concerned that Tesco's “tightening grip” on the economy will develop into a monopoly.
The plans raise the possibility of a Tesco customer buying or renting a home through its estate agent services, securing mortgages through its banking arm and kitting the property out with Tesco's products bought on its credit card.
Worries that the retailer would have access to more personal information than the Government were dismissed by a Tesco's spokesman who also denied that the developments would be "mini-villages". Tesco's have said they plan to create 1,000 new jobs in areas that many other developers cannot and will not invest in.
Tesco's are in advanced talks with Dartford Borough Council, where they hope to build 1,000 homes, the biggest housing scheme. They await approval for 400 homes, a primary school, hotel and park next to the Olympic's Park in Bromley-by-Bow, east London.
Work has already begun on a library and civic centre in Woolwich and Lambeth Council is working with the retailer to deliver the “Streatham Hub”, which includes a full-size ice rink and a new transport hub, alongside 200 new homes.
It's not the first time Tesco's have dabbled in the housing market, a smaller scheme of 73 apartments was built by them in Orpington, Kent last year. Proposals suggest that the homes will be high-quality but not necessarily luxury, and in keeping with the properties in the local market.
But what consumers really want to know is will they get double Clubcard points if they buy a Tesco home?
Tesco, Property, Investment, Market, Prices