The group announced today that it plans to identify suitable housing partners in the regions who will be responsible for redeveloping the sites to increase the availability of social housing. The construction of the first site in Pudsey, West Yorkshire, formerly an office and data centre is set to commence in 2026.

Subject to planning permission, the first redevelopment will create up to 80 new homes that could be available for social rent and help to increase the supply of good, affordable homes in the UK.

A full review of the group’s legacy commercial real-estate portfolio is currently underway, with plans progressing to finalise additional sites that could also be developed by housing partners as social housing in the coming years.

Lloyds Banking Group is also making a new £200 million financing commitment to support local providers who provide housing for those who need it most.

This will focus 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.

Lloyds Banking Group will also become the first UK bank to actively enter the market to own good quality housing that will be available to house families at risk of homelessness. Through Citra Living, the group will acquire 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 initial pilot scheme will begin in August in Cambridge, with plans to roll out to other cities across the UK.

The homes will be sourced to address the particular needs of local authority areas. The pilot will focus on directly supporting families currently presenting as homeless or those in temporary unsuitable accommodation.

Charlie Nunn, chief executive officer, Lloyds Banking Group, said: “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 £17 billion 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.”

In 2023 Charlie Nunn, group chief executive officer, launched the Social Housing Initiative (SHI) to bring together CEOs and leaders from across the financial, housing, public and third sectors, with the collective knowledge, resource and remit to take steps to address the chronic lack of social housing and genuinely-affordable homes in the UK.

This week, the SHI will host the Social Housing Forum, to mark its one-year anniversary. The event will bring together policy makers, CEOs and key voices in the debate to discuss these topics and share insights on the progress made and the future directions of social housing initiatives.

Alongside this, Lloyds Banking Group will publish a white paper on the need for a new era of investment in social housing. Through the SHI’s collaborative efforts, members are delivering on a number of pilot initiatives to unlock barriers to good homes, unlocking land and addressing immediate pressures on local authorities to house those in urgent need.

John Guest, national head of social housing at leading audit, tax and consulting firm RSM UK, said: “Labour’s focus on housing targets, planning reform and infrastructure investment is critical for the social housing sector, as there is currently a major shortage of affordable housing, which is hindering the sector’s long-term recovery. Housing organisations need to be innovative in terms of their access to sites for developments, and today’s announcement from Lloyds could initiate the change in momentum the sector has been longing for, while ensuring minimal impact to suppliers and tenants.

“Changing attitudes towards hybrid and flexible working means that there is less demand for traditional offices spaces, which alongside commercial awareness that sites can be repurposed in different ways, could see more companies follow Lloyds and consider different routes for surplus property assets. Given the new government’s commitment to achieving net zero, this shift in social housing development could also allow commercial property owners to review their environment, social and governance (ESG) credentials, and focus on how to apply these values to their asset bases.”