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Lloyds Bank to buy 50,000 homes in coming years

The housing market could be in for a financial boost of an unusual kind as a High Street bank plans to buy 10,000 homes by the end of 2025.

Lloyds Bank - which in recent months has set out broad proposals to become a residential landlord - was thought to be going into the Build To Rent niche sector.

However, the Financial Times now says the bank has set itself a ‘strategic challenge’ of buying 10,000 properties by the end of 2025, then 50,000 by 2030.

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The figures have been revealed in an internal job advertisement within the banking group.

The FT has been successfully landing scoops about the Lloyds plans for some months.

In June it was revealed by the Financial Times that the bank’s first acquisition would be a new-build block in Peterborough; the first tenants are expected to move in shortly.

This and all other units purchased by Lloyds will be managed by its own subsidiary called Citra Living, which was set up this year, according to filings at Companies House. 

This week’s internal advertisement giving details of the proposals stated that Citra would have a balance sheet worth £4 billion and generate £300m million pre-taxprofit with 10,000 homes. 

It said Citra may consider mergers and acquisitions or strategic alliances to reach the targets.

Lloyds, which owns the UK's biggest mortgage lender - the Halifax - is keen to become a major player in the rental sector.

It is thought that becoming a landlord could allow Lloyds to sell other products to tenants, such as insurance or loans for deposits

Here is the latest FT story - but for many readers it may be behind a paywall.

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    50,000 less homes available for first time buyers, even less for private landlords.
    If the bank has so much money why do't they build to rent ?

  • Theodor Cable

    If there is less for private LL then surely there will be a bigger demand from buyers who will not want to be dealing with banks.

    Anyway, the old fashioned Building Societies were just the same as banks in the way they handled loans and payments. And they got shoved.

  • Kristjan Byfield

    Why on earth, with their capital, would they buy?! Build! They don't have to replicate apartment blocks like many BTR they could build an estate of houses. We know building is cheaper than buying resulting in a higher yield on their investment once let. What's more will have to spend a substantial sum making sure each property is up to regs and looking good. Bizarre approach to take.

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    • N W
    • 20 August 2021 17:27 PM

    spot on Kristjan!

     
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    It’s shameful that they intend to buy and not build. They obviously think property management is a walk in the park. Let’s see, shall we.

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    In the future, there will be no private ownership of cars or properties. We will all be renting from banks and their masters.

  • Lenny White

    Fantastic news!!! Who needs a private rental market when the Banks, Insurance Houses and other Financial Institutions can take over the entire market.

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