Lloyds Banking Group - which this year announced its intention to become a private landlord through the acquisition of new build apartments - is already talking about quadrupling its initial investment.
In June the mainstream press revealed that under a plan called Project Regeneration the bank would buy and manage a range of new build and existing properties across there UK, through a purpose-created subsidiary called Citra Living.
Lloyds is the UK’s largest retail bank and also operates the UK's biggest mortgage lender - the Halifax.
It is reported to be keen to use its low funding costs, brand recognition and knowledge of the housing market to become a major operator in the private rental market. It is thought that becoming a landlord could allow Lloyds to sell other products to tenants, such as insurance or loans for deposits.
Now the Financial Times says the new chief executive of the banking group, Charlie Nunn, is considering quadrupling the budget of Citra Living, raising it to an initial £1bn from £250m.
“The number has not been finalised and could increase further” says the FT, citing sources close to the company.
Over the summer it was revealed that the bank’s first residential acquisition would be a new-build block in Peterborough; the first tenants moved in recently.
In August a leaked document from Lloyds was reported to show that the bank had set itself a ‘strategic challenge’ of buying 10,000 existing properties by the end of 2025, then a total of 50,000 by 2030.
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‘ becoming a landlord could allow Lloyds to sell other products to tenants, such as insurance or loans for deposits.’
Obv not au fait with TFA 2019 then?
How can they sell a loan as a deposit no lender would accept a borrowed deposit the repayment would be deducted or are they then going to guarantee the mortgage so possibly back to 100/125% mortgages another ballon waiting to go POP. GREEDY. Bleeders
My understanding is the comment refers to tenancy deposits, not purchase?
So they’d lend a tenant deposit, charge a few %, potentially said tenant could forfeit entire sum at end of tenancy and still be on the hook for the loan - and Generation Rent complain of the morals of private landlords…
Presumably they would need to note themselves as ‘relevant person’ on deposit documentation, too? How to make a complete hash of being a landlord. And government seem to be supporting this .
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