An internal job advert published by Lloyds Bank has revealed that it intends to acquire 50,000 build-to-rent properties by 2030 and become the nation’s largest private landlord, it has been reported.

The Financial Times says it has been shown briefing papers that Lloyds is hoping its private home rental brand Citra Living will help it diversity away from traditional lending as, like many UK high street financial institutions, continuing low interest rates squeeze its margins.

The job advert also reveals that Lloyds hopes to have a 10,000 portfolio by 2025, making it larger than the current build-to-rent giant, Grainger, which currently operates some 9,000 units.

Start small

The claims within the job ad contrast with Lloyds more cautious public statements in the past about its ‘Project Generation’ initiative when it said the enterprise would ‘start small’.

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But its keenness to enter the build-to-rent sector in force has been clear for some time as other large competitor institutions have ramped up their portfolio building activities.

These institutions believe they have spotted an opportunity within the housing market as smaller landlords have been squeezed by government regulations and tax increases but more and more people are renting for longer.

Other big names include insurance giant Legal & General, investment fund M&G and high street retailer John Lewis, which is planning to turn many of its redundant stores into rental blocks.

As LandlordZONE reported in June, the first Citra Living site will be in Peterborough where a 50-unit residential build-to-rent called Nene Court has been acquired.

Read the FT report.

5 COMMENTS

  1. Every month, there is a big investor trying to get into the rental sector. John Lewis announced it was building homes home to rent, insurance companies are going this, pension companies etc….

    None of them are building quality homes. These are small cramped homes. Over time, these building will get hold and the clientele will be different. In 30 years, these building will be run down just like 1960s council tower block….

    These big boys are fighting out the for same young executive tenants…..

  2. Looking at the often horrendous and very ill considered conversion schemes of commercial space into residential space I sincerely hope for the good of humanity the government (or planning authorities) come up with something to control such “investments” and to acheive quality standards… both in terms of social mix, type, and sq m of living area… bring back Parker Morris, it might not have had all the solutions but at least it created habitable space that allowed one space to at least own a cat.

  3. Lloyds bank, who in general are pretty rubbish, out of touch, and have been pretty vile to PRS for many years, are now hoping to become the number one? I genuinely thought this was a joke.

  4. Nothing to worry about for the average landlord… We are talking about a few thousand units… The PRS is currently 4.5 million households so it’s a drop in the ocean.
    No way will Lloyds be buying up Edwardian terraces. It will be all new build and that alone is going to take some time to get built.

    Supermarkets tried to diversify into banking and that failed, the banks may well go down the same road… They know the amount of mortgage failures on its own books from LL’s who have gone bust so what makes them think they can do it better?

    Eventually this will come back to haunt them when the bad publicity around evicting tenants will start to bite.

  5. Hmm

    Fair competition

    Level playing field

    Banks will be able to offset rental income against borrowing costs

    Sole trader LL can’t do this unless they invest from the outset as a company or at great expense convert to a company from sole trader status.

    Personally I wish banks would buy up all flats and let them.

    Leave houses for the small LL.

    Flats are mostly dud investments anyway.

    Let banks have those risky properties.
    Wouldn’t have been great if banks had achieved this just before Grenfell!!

    £50 billion of remediation costs required………….nice!!

    These banks will have to get their tenant choice right everytime if they are to avoid joining LL who suffer £9 billion of losses caused mostly by feckless rent defaulting tenants.
    .
    That should hit the old dividend payments a fair bit!!!

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