13th
Dec 2021
Earlier this year Lloyds Banking Group publicised its plans to become a private landlord by buying a raft of new build apartments – however it has just been uncovered that it is now determined to quadruple its BTL investment.
In June the Banking Group unveiled its plans to the media of its plans for Project Regeneration, where the bank intends to buy and manage existing and new build properties in the UK, all operations will be run by its new subsidiary Citra Living.
Lloyds is not only the UK’s largest retail bank but it also has the UK’s biggest mortgage lender the Halifax under its umbrella group.
It plans to take advantage of its own ‘in-house’ low funding costs, high profile of its brands, as well as know-how of the housing market to become a major force in the private rented sector. Acting as a landlord it will also be ‘opportune’ for the group to sell other products to its ‘captive market’ (tenants) including deposits, loans and/or insurance.
The Financial Time has just reported the Banking Group’s chief executive – Charlie Nunn - is deciding whether to quadruple Citra’s budget from the existing 250m up to £1bn.
According to the FT sources close to Lloyds have said: “The number has not been finalised and could increase further.”
The bank made its first BTL acquisition over the summer of a new-build block in Peterborough, and the first tenants have just moved in.
In August a ‘whistle-blown’ document from Lloyds ‘discovered’ by the media which showed the bank was intending to undertake a ‘strategic challenge’ of purchasing 10,000 existing properties by the end of 2025, and a further 50,000 by 2030.
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