Housebuilder Barratt Developments has agreed a future sale of 604 homes to rental specialist Citra Living Properties, a wholly owned subsidiary of Lloyds Banking Group, for a total cash consideration of £168.4m.

David Thomas

David Thomas

According to Barratt, it will recognise revenue and profit on the legal completion of each home under this future sale agreement.

Of the 604 homes included within the transaction, in excess of 500 are expected to be legally completed and transferred to Citra’s ownership over the 12 months to 30 June 2024.

Meanwhile, the remaining homes will be completed and transferred in the financial year to 30 June 2025, which Barratt said reflects the variations in both site development stages and build scheduling.

David Thomas, chief executive of Barratt, highlighted that the announcement marks a significant step forward in the firm’s partnership with Citra.

Since forming the strategic partnership in 2021, Barratt has agreed the sale of some 502 homes on individual sites to Citra. Thomas said: “Our focus on quality and the environmental performance of our homes has enabled us to assemble an attractive portfolio of homes in desirable locations for private rental.

“The single-family dwelling segment of the private rental sector continues to grow strongly and presents an opportunity for us to both diversify our revenues against the current challenging market backdrop and develop communities, which encompass all forms of housing tenure.”

Andy Hutchinson, managing director of Citra Living, added: “Our goal at Citra is to bring much needed high quality homes to the UK rental market, to help create balanced communities in the places that people want to live. Our partnership with Barratt helps us achieve that goal and will contribute to delivering much-needed housing stock across the UK.”

Last month, Barratt confirmed John Allan will stand down as chair of the board and as a director of the company.