Lloyds Bank has revealed to The Financial Times that it is to enter into the residential property market as a large private landlord.
Britain's largest mortgage lender has said that as part of its plan to look for new sources of revenue, “Project Generation” will see the lender buy and rent out new and existing properties across the UK, as it looks to boost profits.
According to the latest figures, Lloyds Banking Group saw profits crash by 72% to £1.2bn last year due to the impact of the pandemic.
Hoping to take advantage of its name recognition and well-established industry knowledge, the bank aims to become a major force in the sector and said to the FT: “We are committed to broadening access to homeownership and exploring opportunities to increase our support to the UK rental sector.”
However, the union representing most banking employees - The BTU, was less enthusiastic and warned: “The private rental market is such a risky business and if things go wrong the bank’s reputation could take a hammering.”
The FT said: "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.”