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Lloyds Banking Group to refurb offices for social housing and unveils £200m fund
Lloyds Banking Group will redevelop some of its decommissioned data centres and former office sites into social housing, along with a £200m housing fund.
The group said that the move would increase the supply of social housing in the UK and it had plans to “identify suitable housing partners” in the region to redevelop selection sites.
The first site selected is in Pudsey, previously an office and a data centre, with construction expected to begin in 2026.
Depending on planning permission, the redevelopment will create 80 new homes for social housing.
Lloyds Banking Group said that a “full review” was being undertaken on the group’s legacy commercial real-estate portfolio with plans to bring on further sites that could be redeveloped as social housing by housing partners in the coming years.
The group added that it was making a £200m financing commitment to “support local providers who provide housing for those who need it most”.
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The company said that the focus of the fund would be on those experiencing homelessness or individuals with special needs.
“This financial commitment will enable small housing providers across the country to increase the number of quality homes they are able to make available for the most in need.
Temporary housing to long-term accommodation
Lloyds Banking Group has also partnered with Citra Living so the group can buy suitable homes and work in partnership with housing organisations and local authorities to “lower the costs of providing suitable and good quality accommodation for families who are currently living in temporary accommodation”.
The pilot scheme will begin in August in Cambridge with plans to expand to other cities in the UK. It will focus on helping families that are currently homes or in temporary unsuitable accommodation.
Charlie Nunn (pictured), chief executive officer, Lloyds Banking Group: “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.”
Affordable housing brainstorm
Last year, Nunn launched the Social Housing Initiatives to get senior people in the financing, housing, public and third sectors together to help address the chronic lack of social housing and affordable homes in the UK.
The group intends to publish a white paper on the “need for a new era of investment in social housing”.
Labour said as part of its manifesto that it would deliver more social and affordable homes by strengthening housebuilding, partially by making changes to the Affordable Homes programme.
The government added that it would prioritise building new social rented homes and review Right to Buy discounts and increase protections for newly built social housing.