UK markets open in 4 hours 9 minutes
  • NIKKEI 225

    30,200.89
    +561.49 (+1.89%)
     
  • HANG SENG

    24,545.18
    +34.20 (+0.14%)
     
  • CRUDE OIL

    73.09
    -0.21 (-0.29%)
     
  • GOLD FUTURES

    1,750.60
    +0.80 (+0.05%)
     
  • DOW

    34,764.82
    +506.50 (+1.48%)
     
  • BTC-GBP

    32,408.76
    +406.56 (+1.27%)
     
  • CMC Crypto 200

    1,112.31
    +3.39 (+0.31%)
     
  • ^IXIC

    15,052.24
    +155.40 (+1.04%)
     
  • ^FTAS

    4,081.25
    -0.56 (-0.01%)
     

Lloyds Bank aims to be UK’s biggest private landlord by 2025

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
Lloyds is eyeing up a move into the private rental market (Stefan Rousseau/PA) (PA Archive)
Lloyds is eyeing up a move into the private rental market (Stefan Rousseau/PA) (PA Archive)

Lloyds Banking Group is planning to become one of the UK’s biggest landlords, according to reports.

The banking giant is aiming to buy 50,000 homes in the next 10 years and charge tenants rent as a private landlord.

According to the Financial Times Lloyds has launched the Citra Living brand in an attempt to move into new streams of making money.

Lloyds wants to become landlord of 10,000 properties by 2025 (Anthony Devlin/PA) (PA Archive)
Lloyds wants to become landlord of 10,000 properties by 2025 (Anthony Devlin/PA) (PA Archive)

Lloyds is the biggest mortgage lender in the UK, providing nearly one in four home loans, but, with interest rates at historic lows for more than a decade, returns have been squeezed.

The new plans were first announced a month ago and will be managed through new brand Citra Living, according to the FT.

The paper said an internal job advertisement has set a “strategic challenge” of reaching 10,000 properties by the end of 2025, with a further aim to hit 50,000 by 2030.

Based on current property prices and rental estimates, this would create a portfolio worth £4 billion, generating pre-tax profits of around £300 million.

If the targets are hit, Citra will overtake the UK’s current largest private landlord, Grainger which has 9,100 properties worth around £2.1 billion.

Citra may consider “M&A (mergers and acquisitions) opportunities and/or strategic alliances” to help it reach the targets, the advert added.

Previously, the bank has been cautious on the potential for the new division, with finance chief William Chalmers saying expansion into the private rental market would be “on a limited basis while we explore the area”.

Several big name fund management groups and insurers have entered the private rental market in recent years, including Legal & General and M&G.

And retailer John Lewis recently announced plans to convert unused floor space in its department stores into rental homes.

The switch from small-scale private landlords follows changes in tax rules which mean buy-to-let mortgage payments are no longer tax deductible.

A Lloyds spokeswoman 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.”

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting