Lloyds Banking Group is eyeing up buying 50,000 homes in the next decade to let out to renters as it pushes to become one of the UK’s largest landlords, according to reports.
Reports in the Financial Times say Lloyds has launched the Citra Living brand in a bid to move into the private rental market.
The new plans were announced internally a month ago, the FT said. Lloyds has vast experience in financing homepurchases – it is the biggest mortgage lender in the UK.
If the bank manages to acquire all 50,000 homes by its target of 2030, it will surge ahead of Britain’s current largest landlord Grainger, which currently owns 9,100 properties.
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 move follows fellow high street stalwarts in entering the real estate market. John Lewis is planning to convert unused retail space into private rental homes.
The Covid crisis has prompted companies to diversify their operations in a bid to insulate themselves from future economic shocks.