Retailer John Lewis is closing down its housebuilding business, scrapping plans to build 1,000 homes across three sites.

It cited higher borrowing and building costs than when it first started expanding into residential development in 2020.

It is also pulling out of property management, and will close that business when its contracts with four residential buildings end.

The employee-owned firm said it is instead focusing on its retail brands, John Lewis and Waitrose, to simplify its business and strengthen its balance sheet.