Its statement says: “[The new agency] will be fair for tenants and fair for landlords. For example, people who are homeless won’t be asked to provide rent in advance, won’t need to meet strict reference requirements, and won’t need to provide guarantors. All profits from the agency will be reinvested into supporting people experiencing homelessness to find good quality, affordable homes.”
The lettings agency will start operating in London later this year with the ambition to roll it out across Britain – making it the first nationwide not-for-profit lettings agency.
The statement from the bank says that, working alongside Crisis, it wants one million new “genuinely affordable” homes to be built and made available to those on the lowest incomes, with a focus on supporting people at risk of, and experiencing homelessness.
Today’s partnership announcement follows a new report from Crisis, Home is where the start is: The case for ending homelessness with homes, which claims that 1.8m households on low incomes are living in poor conditions, experiencing potentially dangerous issues like damp, mould and overcrowding, due to the dire shortage of affordable homes, rapidly rising rents and increasing cost of living pressures.
Data also shows that 2.5m households are worried that, in the coming year, they will either be forced into poor living conditions or will have to remain in already substandard homes.
The report also highlights that over 200,000 families and individuals who tried to move last year were forced to accept a property that was unsuitable or in poor condition - which includes having no access to a working bathroom or kitchen, or conditions that impact on physical and mental health.
The partnership will also see Lloyds Banking Group fundraising support Crisis’ Changing Lives Grants Programme to help people experiencing homelessness to progress into education, employment and to start up small businesses. In addition, the partnership will see Crisis and Simon Community NI develop and deliver bespoke training programmes to businesses and communities across the UK with the aim of increasing understanding of homelessness, how it can be prevented and to spot signs of people at risk of losing their home.
Lloyds Banking Group staff will also support with fundraising, volunteering, and sharing skills and expertise during the partnership.
Charlie Nunn, Lloyds’ chief executive, says: “A good home is a fundamental human need, and yet the reality is a chronic lack of affordable housing in the UK. This means there are too many people trapped in a cycle of temporary accommodation, or living in poor, sometimes dangerous conditions.
“This cannot be right and is why today we are announcing our new partnership with Crisis - calling for one million new social homes to be built by 2033, with the clear focus on helping people who are most at risk of homelessness.
“We face an immense challenge, but we know that answers can be found through financial innovation, partnerships and fresh thinking. And as financial leaders for the social housing sector, we have a responsibility to use our capabilities, scale and relationships to help bring about positive change. We are committed to working with Crisis, business and community organisations across UK regions and the government, to end homelessness for good.”
And Matt Downie, chief executive at Crisis, adds: “Our new research shows the heart-breaking reality for people at the sharp end of the housing emergency. Behind these statistics are the stories we hear in our frontline services – parents having to sleep in chairs so their children can take the only bed, or wheelchair users forced to take a flat on a second floor with a faulty lift. These situations are unacceptable and it’s a disgrace that some people are left with only two options: poor quality housing that could endanger their health – or homelessness.
“Our new partnership with Lloyds Banking Group will ensure we can take the bold action that is desperately needed to begin tackling the biggest issue facing the people we support – the chronic shortage of good quality, affordable housing. Our new lettings agency will mean we can help people experiencing homelessness directly into a safe, settled homes, the essential foundation they need to rebuild their lives.
“We’re delighted to have the support of Lloyds Banking Group and its staff in our mission to end homelessness. The money raised and expertise shared through the partnership will also enable us to continue our vital support for people experiencing homelessness, helping more and more people to leave homelessness behind for good.”
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If its as altruistic as the press release claims then well done to Lloyds for having a purpose beyond making billions for their shareholders, hope its a huge success.
Lloyds stated aim is to acquire 50,000 residential Build to Let units by 2030 and have already started those acquisitions.
I hope that Lloyds now appoint Crisis as their agent and take all applicants from Crisis for their properties. In fact, if they fall short, I am also happy to refer any tenants without adequate references or “money up front”
It would be very interesting to know what Lloyds own criteria is for tenants going into their property portfolio – perhaps this is something that LAT can find out and report on?
That's their Citra Living business- I believe this is a totally separate initiative/business.
Mr Payne, banks don't do altruism. I should look up fractional reserve banking! Sub prime crisis etc. Soon as as the banks get into trouble they run to the taxpayer !
I am surprised that Martin Gibbons hasn’t posted banging on about hoping they all have an EPC rating of A using whatever product he favours this week.
Brilliant I look forward to Lloyds reducing their margins over base rate to .5% I will sign up to immediately reducing my rent by the exact amount they reduce their profit
I am holding my breath now!
ZERO CARBON INITIATIVE ,Lloyds use same script writers as shelter to save energy
It’s great to see a joint venture try and tackle homelessness from a social-minded business approach. Homes for Good has already achieved some amazing things in Scotland so this seems a sensible approach- engaging an already successful lettings operation. Of course, the question remains how to balance the security concerns of landlords with the (seemingly) risky approach of housing tenants with no viable references or guarantors. With governments failing at housing at every turn, I’ve long believed it will be socially-minded businesses that will have to solve this problem. Good luck to them!
Kristjan
I suggest you look up Cadburys, lady lever, Fry's chocolate etc. Or Birmingham the city who used profits from their gas and electricity works to fund the housing, sanitation. They also built the reservoirs In the Elan valley which store winter water and supply the Birmingham area with clean sterilised water (flows by gravity to bham), has hydro electric schemes on it and created a wonderful beauty spot. And then came Margaret Thatcher !
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