A new analysis by the Financial Times calculates that the Lloyds Banking Group’s Built To Rent division is now worth a cool £2 billion.
The newspaper says Lloyds Banking Group has quietly become one of Britain’s largest private landlords, having purchased some 7,500 properties through its Lloyds Living division since it was launched in 2021.
It is now a major UK-listed residential landlord, behind only insurer Legal & General, fund group M&G and property developer Grainger.
But the FT reveals that Lloyds’ original target for a portfolio of 10,000 properties by the end of this year will be missed, although the size of the stock has grown 50% in a year.
Lloyds has told the newspaper: “We are pleased with the significant progress made to grow the Lloyds Living business since its launch in 2021, and how — in line with the strategic aims set out from the start — it is helping to increase access to good quality, affordable housing nationwide and is already contributing significantly to the group’s diversified income streams.”
Recently Lloyds Living appointed a seasoned property and investment figure as its new chief executive. Matt Burgess – who has been acting chief executive since Andy Hutchinson stepped down earlier this year – is the new permanent CEO.
Before joining Lloyds in July 2021, Burgess was a director at property consultancy JLL, where he had a dual mandate across Residential Capital Markets and the Banking & Capital businesses, providing commercial advice to a range of financial institutions on their real estate strategies.
Previously, he spent over 10 years working in various investment-focused roles at HSBC, as well as co-founding a property technology start-up focussed on digitally connecting homeowners with reputable home improvement services.
Build To Rent is now the only area of the private rental sector which the bank is interested in. Good Place Lettings has launched with the self-declared aim of “bringing more social purpose to the private rental market in London” and is created as a joint venture funded by Lloyds and the National Lottery Community Fund.
You can see the full FT analysis here: https://www.ft.com/content/3c59c0bd-5f8c-491b-8f25-c0dab8669c48
This article is taken from Landlord Today