(Bloomberg) -- Lloyds Banking Group Plc could buy 50,000 U.K. homes in the next decade as it looks to become a major player in the country's rental market.
An internal job advertisement seen by the Financial Times for the bank's newly launched Citra Living unit details ambitions for Lloyds to purchase 10,000 houses by the end of 2025 and 50,000 by 2030.
The new business aims to provide a fresh source of revenue for the U.K.'s largest mortgage lender as low interest rates hit margins. Citra Living hopes to take advantage of demand for rental properties as traditional private landlords leave the market due to changes in regulation and tax, while the number of people renting is set to increase.
“As highlighted at launch, Citra Living will initially start small, with a focus on buying and renting good quality newly built properties,” Lloyds said in a statement. “The aim is to gradually provide incremental stock to the U.K. rental market over the coming years.”
Fletton Quays, a 45-apartment complex in Peterborough, is Citra's first development. It aims to acquire 400 properties by the end of the year, and double that in 2022, according to a July statement.
The Financial Times reported the news earlier.
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