Lloyds on the verge of entering the private rental sector – Daily Business
Lloyds: Lender to Homeowner (Photo: Terry Murden)
Lloyds Banking Group is on its way to becoming the first UK retail bank to enter the private rental industry.
He is said to be in the process of acquiring a number of apartments which would be managed by a subsidiary called Citra Living.
Banks are feeling the pressure of record interest rates, which are squeezing loan profits.
The PRS plan, codenamed Project Generation, aims to provide another source of income for Lloyds.
Sources said the bank, which owns Bank of Scotland, Scottish Widows and mortgage lender Halifax, is set to secure a first block of apartments in Peterborough.
Institutional investors such as pension funds have accumulated in real estate assets, although some have been stung by recent price pressures in the office market, and some real estate funds have been shut down.
The residential market has not only held up, but is booming with demand for both private and rental properties.
Real estate agent Savills predicts rental values will rise 17% over the next five years.
Lloyds said Online Mail: “As we reported in our annual results in February, we are committed to expanding access to homeownership and exploring opportunities to increase our support for the UK rental sector.”