Lloyds Bank to buy 50,000 homes as it aims to become one of UK’s largest landlords
The move comes in conjunction with the bank’s recently launched Citra Living brand, a play that pushes it into the private home rental market.
As low-interest rates take hold, Lloyds has looked to diversify its offering away from traditional lending.
A Lloyds spokesperson said: “As highlighted at launch, Citra Living will initially start small, with a focus on buying and renting good quality newly built properties.
“This will be achieved by working alongside leading housebuilders to address the increasing demand for rental properties. The aim is to gradually provide incremental stock to the UK rental market over the coming years.”
The bank will take a staged approach to its push into the property market and has recently signed a strategic partnership with property development firm Barratt Developments (BDEV.L).
The FT said the internal job ad showed Citra has set a “strategic challenge” of owning 10,000 properties by 2025, increasing to 50,000 by 2030. By 2025, the balance sheet would be worth about £4bn and generate about £300m in pre-tax profit, the advertisement said.
The UK’s largest mortgage lender started its Citra push in July, buying 45 flats at the Fletton Quays development in Peterborough as its first purchase. At the time it said it aimed to acquire around 400 properties by the end of the year, and wanted to target 800 for 2022.
Retail banks have previously struggled to diversify out of their core areas. Lloyds’ previous push into PPI cost the bank more than £20bn in compensation payments for mis-sold plans.