Lloyds Bank is considering entering the private rental sector as a landlord, according to a Financial Times report. The newspaper says it has 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, wrote the FT.
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.
The report stated: ‘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.’