First tenants to move into Lloyds Bank rental units this summer

Lloyds Bank says tenants will “within the next few weeks” move into the first of a series of new developments it is buying as it enters the private rental sector.

Last month it was revealed by the Financial Times that the bank’s first acquisition would be a new-build block in Peterborough; this is now the scheme into which the first tenants are expected to move. 

Now the FT says Lloyds is considering a raft of other new build block purchases, with all units to be managed by its own subsidiary called Citra Living, which was set up this year, according to filings at Companies House. 

Lloyds, which also operates the UK's biggest mortgage lender - the Halifax - 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 landlord market. 

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

Andy Hutchinson, Citra managing director, has told the FT this week: “Through those partnerships we believe we can bring incremental [housing] stock to the market . . . we don’t want to hoover up properties owner-occupiers would want to buy.” 

Just days ago the John Lewis Partnership announced that it was to enter the private rental sector too, via 10,000 rental units constructed through joint ventures with established developers. 

Plans for some 7,000 of these are already at initial stages on sites currently operation as department store car parks, Waitrose grocery stores, or company distribution centres. Other sites will also be developed from scratch.