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Threat to small-scale landlords as Lloyds Bank buys and lets flats

It’s been reported that the Lloyds Banking Group is set to buy its first property as it seeks to become a private landlord. 

Today’s Daily Mail reports that the bank is close to securing a block in Peterborough, and could start letting them next month.

Under a plan called Project Regeneration, Lloyds - Britain's largest retail bank - will buy and let out a range of new-build and existing properties across the UK. The bank will manage its portfolio through a 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.

Lloyds owns the Halifax, Scottish Widows and Bank of Scotland brands and has involvement with wealth management and insurance.  

Lloyds has told the Mail: “As we stated in our full-year results in February, we are committed to broadening access to home ownership and exploring opportunities to increase our support to the UK rental sector.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • George Dawes

    This is just the beginning ...

    In 10 years time there'll be no PRS

    Mark Wilson

    That is the Government's plan. Has been for years.

    • AQ
    • 21 June 2021 15:03 PM

    I suspect they'll begin restricting loans that are given out to non-corporate & non-portfolio landlords at some point. If they get rid of "mum and dad's retirement fund" I don't think it'll be an issue and given that Lloyds have decided to invest in a crap block of flats in Peterborough I don't really feel much competition from this supposed mine of magic data they have.

  • Patrick  Rodgers

    Yeah can't want to get out it's just not worth it anymore

    Ferey Lavassani

    I always said I will not serve notice on any existing tenant unless you know what. And I promised myself not to let a vacant property and sell. My prayers were answered last week when a tenant gave me notice that after 5 years they want to move to Leeds, from Stockport. I am a happy bunny.

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    There’s always a reason for madness and this is it! Couldn’t understand why tenants are still in my house and 8 months rent arrears owing. Now it makes sense if I ever get my house back I will never rent out again. Government won!

  •  G romit

    Didn't banks get into estate agencies ~20 years ago.
    How many are still in that business?


    Yes they did. Bought to get the mortgage business and when it went t*t's up they sold them back at a nominal £1 a pop.
    You would think that they learnt by that mistake. Renting is the new mortgage business and will probably go the same way.

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    They'll get their fingers burnt, a block of flats in Peterborough , wounder what sort of tenants they'll fill that with there.

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    Maybe LLoyds could buy a block of flats in Bristol and rent to those '' vulnerable '' refugees


    Is anyone surprised that the comments have been disabled at the end of the article on Bristol's council request for landlord's to help them?


    True-Lloyds should help Bristol’s Refugees.
    Alternatively Bristol mayor could always send those refugees to Generation Rent/National Private Tenants Organisation Limited’s Baroness Kennedy, and other highly paid Directors homes as they would welcome the renters who don’t want to or can not pay rent. This is their opportunity to Lead by Example and give people rent free homes for life by Generation Rent, instead of asking PRS LL’s to face financial losses by non payment of rents, and costly repairs to property due to damage done by tenants/their ‘well behaved, certified trained’ pets.

    John  Adams

    Funny how comments get switched off, the reality is that Councils are quick to condemn PRS Landlords, but faced with the facts that they and successive governments have failed to build social housing they now come cap in hand. Perhaps the PRS landlords in Bristol should make those facts very clear to Bristol Council.

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    Lloyds Bank clearly know nothing about the rental market. The worst thing you can do is buy flats. Apart from the sort of tenants you are likely to get and the high management charges, there is a limited market for flats. Particularly as current flat renters will probably be looking for houses with gardens after being stuck inside during the pandemic.


    Renters are happy to live in flats or houses - as long as they are provided for free.
    PRS LL can not afford to provide free housing services, whereas Lloyds bank has got OPM hence can easily do so.
    Guess time will tell the impact of Lloyds bank strategy on PRS & it’s customers, investors. They will all defect to another bank, when Lloyds Group’s rental income losses would result in nil dividends on investment.

     G romit

    Lots of flats are going to be repossessed as their owners cannot afford the re-cladding cost.
    Cynical move by Lloyds.

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    As Lloyds are operating in the PRS they will have to follow PRS rules and regulations. Wait until they need to evict tenants they will then be speaking with the government to change the rules again. This could work in our favour too

    John  Adams

    I agree, and there are many property types and areas the banks are simply not going to want to take on. Certainly, be interesting to see what they do when they have defaults, and properties where the tenants are trashing the place, or anti-social but at a level that can't be easily tackled, but generates complaints from the residents. Lloyds will quickly realise that they are going to have to stick to serviced Riverside apartments, and not the run of the meal stuff that makes up 99% of the PRS.

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    following Blackrock in the US example!

    They seem to be buying up large swathes of housing at over the asking price to find an alternative revenue stream!

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    If Lloyds Bank be wants to compete with me, then two can play that game.

    Anyone want to borrow money from me at 39% interest and give me their mum and dad's house as security?

    Personally I think that's a safer business than PRS right now.

  • Peter England

    Great idea from Lloyds bank in my book. Does anyone have a Lloyds bank contact who is dealing with the property management. I expect they will need a 1st Class property management system and I would love to talk to them about PaTMa. As for competing as a Landlord then that's also fine with me. I'm sure their overheads will be a lot higher than mine.

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    I don’t believe Lloyds or other organisations will have to follow the rules, just like now rules don’t apply to huge numbers of LL’s.
    Do you really think after all we have been through that rule apply equally to all LL’s or even private sector LL’s, for example if you let to families, let to certain individuals, let to any number of persons remotely related, you are virtually exempt, what has that got to do with anything a person is a person & should be treated equally before the law but obviously not if this is not discrimination what is.
    Market forces can’t decide what the housing sector should be or a level playing field when its being deliberately distorted and manipulated by law.


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