Lloyds Banking Group is to become one of the biggest landlords in the UK as it plans a huge move into the rental market.
The banking giant wants to purchase 10,000 homes by the end of 2025, a figure which will rise to 50,000 homes in the next ten years, according to reports.
Lloyds would charge tenants rent as a private landlord under its recently launched Citra Living brand.
The Financial Times, which first reported the story, said if Lloyd hits its 2025 target, it would make Citra the largest private residential landlord in the UK, overtaking the current size of Grainger.
Grainger owns about 9,100 properties and has a market capitalisation of £2.1billion.
But Lloyds’ plans would see it create a portfolio worth £4billion and generate pre-tax profits of around £300million, based on current market prices.
The update comes comes after Lloyds first confirmed it would enter the rental market last month, starting with 45 new apartments at Fletton Quays in Peterborough.
These flats will be available for tenants to start renting in the next few weeks.
Lloyds isn’t the big name on the high street to announce a move into the rental market.
Last month, John Lewis said it was considering building 10,000 homes over the next decade to bring in an extra revenue stream.
Ikea first confirmed it would be opening a series of “flat-pack” homes in Worthing in 2019 through its BoKlok housing concept, which is owned by Ikea and construction company Skanska.
BoKlok homes are factory-built and priced after calculating how much owners can afford after the cost of living is taken into account.
Nina Bhatia, executive director of strategy and commercial development at John Lewis Partnership, said: “As a business driven by social purpose, we have big ambitions for moving into property rental to address the national housing shortage and support local communities.
“It will also provide a stable, long-term income for (the) partnership, new employment opportunities for our partners and plays to our strength as a trusted brand known for strong service.”