Lloyds Bank Rental Plans To Quadruple
Lloyds Bank Rental Plans – which this year announced its intention to become a private landlord through the acquisition of new build apartments – is already talking about quadrupling its initial investment.
In June the mainstream press revealed that under a plan called Project Regeneration the bank would buy and manage a range of new build and existing properties across the UK, through a purpose-created subsidiary called Citra Living.
Lloyds is the UK’s largest retail bank and also operates the UK’s biggest mortgage lender – the Halifax.
It is reported to be keen to use its low funding costs, brand recognition and knowledge of the housing market to become a major operator in the private rental market. It is thought that becoming a landlord could allow Lloyds to sell other products to tenants, such as insurance or loans for deposits.
Now the Financial Times says the new chief executive of the Lloyds Bank Rental Plans, Charlie Nunn, is considering quadrupling the budget of Citra Living, raising it to an initial £1bn from £250m.
“The number has not been finalised and could increase further” says the FT, citing sources close to the company.
Over the summer it was revealed that the bank’s first residential acquisition would be a new-build block in Peterborough; the first tenants moved in recently.
In August a leaked document from Lloyds was reported to show that the bank had set itself a ‘strategic challenge’ of buying 10,000 existing properties by the end of 2025, then a total of 50,000 by 2030.
Blog Post from Letting Agent Today
If you have any comments, please email the author of this article and click on the link above