New income source

Lloyds poised for move into private rental sector

Lloyds Banking Group

Lloyds: Lender to landlord (pic: Terry Murden)

Lloyds Banking Group is poised to become the first UK retail bank to move into the private rental sector.

It is said to be close to acquiring a number of flats which would be managed through a subsidiary called Citra Living.

Banks are feeling the squeeze of record low interest rates, which are crushing profits from lending.

The PRS plan, codenamed Project Generation, is aimed at bringing in another source of income for Lloyds.

Sources said the bank, which owns Bank of Scotland, Scottish Widows and the mortgage lender Halifax, is close to securing a first block of flats in Peterborough.

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