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High Street bank may become huge private landlord

Lloyds Bank is considering entering the private rental sector as a landlord, according to a Financial Times scoop.

The newspaper says it's seen documents referring to a plan called Project Regeneration in which the company - Britain's largest retail bank - will buy and let out a range of new-build and existing properties across the UK. The bank aims to have its first tenants by the end of this year.

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. The FT says the bank, which also owns Bank of Scotland, has existing relationships with almost all the UK's biggest housebuilders.

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"As well as providing direct benefits through rental yield and house price growth, the bank is hoping the move will boost its existing businesses, for example by providing an opportunity to cross-sell rental deposit loans or insurance. It could also help fund Scottish Widows annuities" according to this morning's report. 

"In addition to boosting its income, Lloyds executives believe their plan could fit with its stated social objective of 'helping Britain prosper' by offering better quality and more professional services to renters than many existing landlords. However, employee representatives cautioned that the initiative would also expose the bank to reputational risks if tenants have problems with the bank or the outsourcers it hires to manage the properties" the paper reports.

  • Algarve  Investor

    Interesting. Lloyds, John Lewis - who will be next? This could be a real game-changer and feeds into the whole Build to Rent/co-living/PBSA corporate side of the market, which appears to be growing quite fast.

    The government seem very keen to push this kind of renting experience over the traditional one and at the expense of a traditional buy-to-letter. I'm not sure this will go down well.

    Despite all the hype, BTR is only responsible for around 1% of the market, and co-living even less than that, but they get a lot more love from the government than those who rent out the majority of homes in the UK. Strange.

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    Maybe they should focus on banking and be "good" at one thing rather then lousy at lots of things!

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    I bank with them for part of my portfolio. I thought they were supposed to be by your side not in your back yard. As Janet says they should stick to banking.

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    Just leave them in numbers !

     
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    Good luck to them!
    They can buy my rental property complete with the scum tenants sitting for 6 months not paying rent

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    So now Lloyds Bank is competing with owner occupier buyers. This extra competition, where there is already short supply, will increase house prices even more and take affordability even further away from the next generation. Maybe Acorn will want to picket outside Lloyds now!

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    I hate to say it, but it kind of fits with UN Agenda 21. Worth a bit of research.

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    They want us out so badly its crystal clear that's why we are bullied so much, the big boys want our business disgraceful behavior by Banks. My last statement informed me my Deposit rate was being cut from 0.06% to 0.03% yet the charge several percent on loans, on credit Cards it could be 19.9% or maybe 29.9% or any figure the choose. Now they want to muscle in on their Customers Business why not the have our money for nothing, it a conflict of interest, while LL's pay for expensive Loans, will now be in direct competition with us and have all the Government reliefs / tax breaks, its a conspiracy we now have several major Company's & Institutions taken over.

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    Very true. Corporate Britain 🇬🇧. Sick of it!

     
  • Trevor Mealham

    Lloyds have been doing criminal asset stripping with their BSU abortoir based in Bristol.

    Their shareholder Blackrock is one of the biggest asset managers.

    The frauds in Bristol have been covered up by the Avon & Somerset Police Crime Commissioner

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    I've always banked with Barclays, as my farther and grandfather did before me, never had a problem with them, in fact 40 yrs ago when times were hard they stood by me, I did however once open an account with Lloyds as I thought it wise to have another separate bank account, what a sh*t bank they really are, I soon closed that account.

  • George Dawes

    All part of the grand plan to squeeze the little guy out

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    I agree with Mr Rigsby.

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    If Lloyds start a property investment fund to do this, allowing savers to invest in their property portfolio and get decent returns, then this is a good idea. I cannot see any other way they can justify this new move, so keep an eye out for the new “Lloyds Property bond”. It will be interesting what rates they are offering on investment!

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