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Home REIT, a UK social housing company, is under investigation by Britain's Serious Fraud Office for an estimated GBP 300 million (USD 404 million) in suspected bribery and fraud. Six individuals linked to the company's former management have been arrested. Home REIT raised over GBP 850 million in its first three years to acquire and restore properties for vulnerable groups, promising investor returns through rental income. Concerns over property valuations and tenant payment capacity emerged in late 2022, leading to the suspension of trading. The SFO has searched multiple sites, including a property in Italy.
Britain's Serious Fraud Office (SFO) has arrested six individuals in connection with a GBP 300 million (USD 404 million) bribery and fraud investigation into the former management of Home REIT, a social housing group listed on the London Stock Exchange in 2020. Advertisement
Home REIT spent millions acquiring properties across the UK intended to house vulnerable groups, including rough sleepers, veterans, and individuals facing addiction. In its first three years of trading, the company raised over GBP 850 million from investors, promising that funds would be used to buy and restore properties, which would then be leased to publicly funded charities and community interest companies. Investors were told rental income from these properties would generate returns.
Concerns arose after a November 2022 investor report questioned the accuracy of property valuations and the tenants ability to pay rent. Trading in the company was subsequently suspended in January 2023. Emma Luxton, SFO director of operations, described Home REIT's collapse as chaotic, leaving many unresolved questions, and noted that the arrests were part of a major operation to investigate suspected bribery and fraud.
Home REIT said it is aware of the SFO's actions, including searches of seven locations, and confirmed it would provide assistance as needed. One of the sites searched was a home in Venice, Italy. No further details have been disclosed at this stage.
Source Reuters
5th Jun, 2025
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