Lloyds Banking Group has unveiled an initiative to repurpose decommissioned group data centres and former office locations into new social housing projects.
With the goal of boosting the supply of new social housing in the UK, Lloyds has revealed its intention to collaborate with housing partners across various regions. These partners will oversee the redevelopment of identified sites to expand the availability of social housing.
Subject to obtaining planning permission, the initial redevelopment project in Pudsey, West Yorkshire, aims to deliver up to 80 new homes available for social rent.
At the same time, Lloyds Banking Group is conducting a thorough evaluation of its existing commercial real estate holdings, as plans are underway to identify additional sites suitable for redevelopment into social housing through partnerships with housing providers in the future.
Furthermore, Lloyds has announced a new £200m financing commitment aimed at supporting local housing providers.
This commitment will prioritise individuals experiencing homelessness or with special needs, aiming to empower small housing providers nationwide to increase the availability of quality homes for those most in need.
Additionally, the bank is set to become the first in the UK to venture into owning high-quality housing, specifically to accommodate families at risk of homelessness.
Operating under the name Citra Living, the Group plans to acquire appropriate homes and collaborate with housing organisations and local authorities, with the goal of reducing the expenses associated with providing suitable, high-quality housing for families currently residing in temporary accommodations.
In 2023, Charlie Nunn, CEO of Lloyds Banking Group, launched the Social Housing Initiative (SHI) to unite CEOs and leaders from finance, housing, public and third sectors.
This week, the SHI will host its Social Housing Forum to mark its one year anniversary. The event will bring together policymakers, CEOs, and key stakeholders to discuss progress and future directions in social housing initiatives.
Lloyds has also announced plans to release a white paper advocating for a new era of investment in social housing.
Nunn commented: “Everyone has the right to build a future from the foundation of a secure home. Social housing is part of this country’s critical infrastructure, and we need to direct and increase investment into the right homes, in the places they’re needed most.
“Lloyds Banking Group has provided £17bn of support to the sector since 2018 and today we also have announced our plans to redevelop decommissioned Group data centres and former office sites for new housing projects – and I would encourage others to also consider this.
“We’re also making a major financing commitment to housing providers, and through Citra Living we will own good-quality homes to be made available for those most in need. In partnership across the private, public and third sectors, we can create more good-quality, genuinely-affordable homes.”
Other banks have played a part in boosting social housing. Earlier this year NatWest Group announced a package of targeted lending and support for UK social housing worth £5bn over the next three years.