John Lewis and Lloyds Banking Group plan to become private landlords
Both John Lewis and Lloyds Banking Group unveil plans to own 11,000 homes to rent in UK
Lloyds Banking Group has announced its entry into the private rental market, they plan to buy 1,000 residential properties by the end of 2022.
The group which owns brands such as Scottish Widows, Halifax and Bank of Scotland wants to diversify its income in a period of low interest rates.
The business will be run as the brand 'Citra Living'. Andy Hutchinson, Citra managing director says the move "Will benefit shareholders as well as customers".
Retailer John Lewis is preparing to become a private landlord after unveiling plans to build 10,000 new homes on land it owns.
John Lewis' property director Chris Harris said "Typically a developer might try and maximise returns and then move onto the next one. We are not trying to do that. We are aiming to charge a fair rent and to stay for the long haul.
Chris Millington, analyst at Nunis said "Rental growth over the last 10 years has been consistently above inflation, vacancies have been low and rent collection good, even through Covid. Clearly occupancy did get hit by Covid, particularly around London, but there's a feeling that is a temporary situation."
Source: Financial Times and Property Industry eye
If you are looking to enter the buy to let market or keen to add to your current portfolio, contact David Long or Leah Newbould for advice on the local property market.