Lloyds Bank plc, a leading British banking group that is the largest mortgage lender in the UK, has reportedly announced plans to become one of the country's largest private landlords, with a goal of purchasing 50,000 houses over the next decade.
According to reports, Lloyds is the latest high-profile brand to enter the property market with this move. Meanwhile, last month, it was reported that retail chain John Lewis was contemplating plans to construct more than 10,000 rental houses over the next 10 years.
As per accounting company Blick Rothenberg, the industry conditions are such that many enterprises are aspiring to become landlords.
Lloyds on its part, has made no attempts to keep its intentions secret and announced its foray into the private renting sector earlier this month. With this, it became the first prominent English high street bank to do so.
The bank announced its first project, Fletton Quays in Peterborough, where 45 apartments would be offered for rent in the coming weeks.
Lloyds stated at the time that the endeavor, which would be conducted under a separate brand-named Citra Living, will begin modestly. However, an internal employment posting exposed the scope of its goals, claiming that Citra Living has set a target of 10,000 homes by the end of 2025, followed by 50,000 by 2030. If this goal is met, it will become one of the largest landlords in the United Kingdom.
One in every five homes in the United Kingdom rent privately, according to Lloyds, and demand is expected to rise over the next five years. However, due to regulatory and tax reforms, many amateur landowners who were drawn in by the buy-to-let boom have left the market in recent years.
Lloyds stated last month that its goal was to purchase 400 real estates by the end of this year and to quadruple that objective the next year. It intends to collaborate with homebuilders to locate sites, with Citra Living purchasing the rental component of these new complexes.