Six arrested as fraud office launches £300m probe into social housing landlord Home REIT
Six people have been arrested after the Serious Fraud Office (SFO) launched a £300million bribery and fraud probe into the past management of social housing landlord Home REIT.The investment trust, which houses vulnerable people – including the homeless – listed on the stock market in 2020.It has been mired in crisis since an investor report questioned its business model three years ago. The Daily Mail has led the way in exposing the company.After listing, Home REIT raised £850million in the first three years. Investors were told their money would be used to buy and restore properties to be let to charities and housing associations for rough sleepers, veterans and addicts, the SFO said.Returns would be generated by rental payments but, in November 2022, an investor raised concerns about valuation of properties and the ability of tenants to pay rent, and shares were suspended in January 2023. Probe: Home REIT, which houses vulnerable people including the homeless, has been mired in crisis since 2022 when an investor report questioned its business modelEmma Luxton, director of operations at the SFO, said: ‘This company had a meteoric rise, spending millions on properties that were supposed to house the most vulnerable in society and provide returns for investors. Its chaotic downfall has left many with unanswered questions.’Ellie Reeves, the Solicitor General, said: ‘The allegations are deeply serious. Vulnerable people were promised homes, while investors who funded millions of pounds were promised returns. Both groups deserve answers.’The SFO said it searched seven properties in Altrincham, Maidenhead and London while a commercial site in Manchester was also raided, with the National Crime Agency assisting. A home in Venice was also searched by Italian authorities with the help of the SFO. Home REIT said in 2024 that it faced a probe by the Financial Conduct Authority.And last year, accounting watchdog the Financial Reporting Council launched an investigation into auditor BDO over its scrutiny of its 2021 accounts.In November, Home REIT said it had struck an agreement to sell 700 of its 853 properties for £123million to European firm Patron Capital in a bid to stay afloat.Damning revelations include a probe by accountants Alvarez & Marsal which uncovered transparency and due diligence failings by its former investment adviser.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Six arrested as fraud office launches £300m probe into social housing landlord Home REIT
