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Another bank enters rental sector with plan for 2,500 homes

A retail bank has announced the launch of a £500m project to fund the construction of up to 2,500 suburban, purpose-built family rental homes across the North and Midlands.

Gatehouse Bank already has two large Build To Rent schemes and this new project will see it become one of the UK’s largest providers of purpose built single-family rental homes. Its announcement comes on the back of Lloyds Bank Group saying it, too, wants to become a major residential landlord.

Paul Stockwell, Gatehouse Bank’s chief commercial officer, says: “We are delighted to have found an experienced, institutional partner in [equity platform] TREP as we launch our third major private rental investment initiative. 


“This joint venture will see significant capital being deployed to build and develop the next generation of Build To rent housing, concentrating on high quality family homes in suburban locations.”

The venture has already secured an initial seed portfolio of four sites, acquired in partnership with Countryside Properties, which specialises in mixed tenure and regeneration projects. 

The launch properties comprise of 321 single family homes, located in established residential communities in the Midlands, Greater Manchester and Merseyside regions of the UK. The partnership arrangements intend to deliver additional projects in the Midlands and North in the near future.

James Piper, a partner at TREP, adds: “With this initiative, we aim to be a valued partner not only to homebuilders but also the communities and families that will call these properties home.”


In June Lloyds Banking Group announced that it was to buy its first property as it seeks to become a private landlord. 

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.

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  • George Dawes

    Just the beginning of the end of the PRS

    In 10 years time the big boys will own it all

     G romit

    The bank went into estate agency awhile ago. How many are still in that business?

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    George it will be another sub prime crisis. It says they are building homes for single families, which suggests unmarried mothers ie funded by the taxpayer. They should concentrate on lending to people who kknow what they are doing.


    They are very welcome to the single mums on UC

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    Dream On George. As I have found out to my cost property does not scale. You running your own small portfolio can do do 10 times as much as employees do.
    No company could survive on the £60 a week they pay in my area for under 35s on benefits. The large institutions are not interested in those who have not got a working track record

    Yes there will be changes but everything changes
    Jim haliburton
    The HMO Daddy

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    Well Lloyds are hopeless and Gatehouse I've never heard of, they'll fall flat on their faces, just give them time.

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    Good luck to them getting them built!! The materials shortage and massive price inflation will put paid to that plan. Or they will have to increase prices well beyond the market expectations and that will be good news for us!


    No cement in B&Q Norwich, not one bag, a window fitter told me last week the next shortage is going to be glass, so how are they going to build all these new homes, and the big increase in material costs ?


    Very likely Andrew. Steel is another example. £500 a ton in January £1500 a ton today and suppliers will only hold a quote for 48 hours. A school in Oswestry near me put a 1.2m project out to tender and all 5 invited to quote have withdrawn!

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    You are completely missing the real threat here ,the big banks acting as a cartel will once they are established institute regular interest rate hikes targeting landlords, the script will be along the lines of due to increased risks of default in the PRS in order to protect our shareholders we have
    "BEEN FORCED" to substantially increase interest rates fo private landlords( THEREBY MAKING SURE MANY LANDLORDS CANNOT AFFORD THEIR MORTGAGES) the criteria for repossessions on buy to let mortgages will be rewritten so that one late payment starts immediate possession proceedings , the government will regulate to the effect that banks can repossess in a mater of days not months the government will further regulate that landlords cannot begin proceedings for one year after arrears
    Job done the extermination of landlords and their families


    For landlords without mortgages or small loan to value ratios, the inefficiency of corporate landlords will lead to soaring rents and help us all get richer.

    This has already happened in the student ghettos which have pushed up rents for all students.

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    frb--will fail

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    Disgraceful behaviour by Banks when the crash came its the tax payers that bailed they out, they should have survived themselves or went bust like us, now as a thank you they are in direct opposition to us and if they fail again will we be expected to prop them up, no one bother if we go bust but the powers that be doing everything they can to destroy us.

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    It's a big market place. Make sure that your own portfolio is de-risked. With the massive surge in property prices careful planning should make private Landlords be able to stand on their own 2 feet. Risk taking to build a portfolio is now a fools game.

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    Andrew, and a big shortage of timber, no surprise to me with stupid Building Control Regulations everything they want has to be different and bigger. Every house in the Country be it Terraced, Semi or detached was Roofed with 4” x 2” common rafters, not now it’s more like 5” / 7” or more what for it not the size of the timber that counts but what you do with it and how it’s supported so it’s simple down to design.
    Same goes for loft extensions used to be again 4”x2” (100mm x 50mm) now it’s fair to say they have doubled.
    They talk about environment and Global warming while slashing down Forests all over the World to feed this mad craze, Building Control also now require massive Steels whether RSJ’s or Universal Columns, we were able to do the work far more efficiently & cost effective before they muscled in, no wonder there a shortage.

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    I agree totally Michael, most building control officers are no different to Fergus's council man, bull sh*t baffles brains .

  • George Dawes

    Anthony Altman gets it .

    Governments aren't here to help you , they're here to control you

    Wake up people , the great global warming scam coming soon


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