Lloyds Banking Group has quietly become one of the UK's largest landlords, amassing a £2bn residential property portfolio through its Lloyds Living arm, according to analysis. The bank, already the UK's biggest mortgage lender, has acquired over 7,000 properties since launching the division in July 2021, with plans to reach 50,000 rental homes by 2030.
Lloyds Living, originally called Citra Living, provides homes for rent and shared ownership across 42 developments nationwide. The portfolio includes houses and low-rise apartment blocks in suburban areas, ranging from one-bedroom flats for young professionals to four-bedroom houses for families. The division now manages 7,500 homes, placing it among the UK's largest private sector landlords alongside Legal & General, M&G, and Grainger.
A Lloyds spokesperson said the bank is pleased with the progress, noting that the business is helping increase access to good quality, affordable housing and contributing to diversified income streams. Most acquisitions have involved funding development partners to build more housing. In June, Lloyds struck its second major deal with Barratt Redrow, adding 598 homes across 11 sites in southern England.
Last summer, Lloyds began converting former office buildings into social homes in Pudsey, West Yorkshire, with plans for 93 homes rented at half the usual rate—making it the first UK bank to directly enter the social housing market. In July, the bank hosted a social housing conference with housing associations, lenders, and then-housing secretary Angela Rayner to discuss the need for more affordable housing.
The move into rental properties reduces Lloyds' reliance on interest income, which has been squeezed by low UK interest rates. The bank has reported strong income growth from Lloyds Living, though its performance has been overshadowed by the ongoing car loans commission scandal, for which Lloyds is expected to face the largest compensation bill among its peers.
