- Investigators search properties in the UK and Italy
- Fund once promised homes for the homeless and steady investor returns
- Questions grow over how properties were really used
The Serious Fraud Office has arrested six people and carried out raids at seven locations as part of a widening investigation into alleged bribery and fraud linked to social housing fund Home REIT.
The agency has estimated around £300m of “suspected offending” connected to the company, which was once listed on the London Stock Exchange. Searches were conducted at residential addresses in Altrincham, Maidenhead and London, along with a commercial site in Manchester. A further search took place at a property in Venice, with support from Italy’s Guardia di Finanza. Officers from the National Crime Agency assisted in the operation.
Five men and one woman, aged between their 40s and 70s, were arrested and are expected to be questioned as inquiries continue.
Big promises and big questions
Home REIT was set up in 2020 and presented itself as the first London-listed property fund focused on tackling homelessness. Investors were told their money would be used to buy and refurbish homes that would be leased to publicly funded charities and community interest companies. The aim, according to earlier disclosures, was to house rough sleepers, veterans and people struggling with addiction, while generating returns through rent payments.
Over its first three years, the fund raised about £850m. At its peak, it spoke of ambitions to grow into a £1bn business and help take thousands of people off the streets.
Concerns began to surface in 2022 after an investor report questioned the valuation of properties and whether tenants could meet rent obligations. Allegations later emerged that some properties were in poor condition or were being used outside the fund’s stated purpose, including claims that homes were advertised on rental and holiday platforms.
Trading in Home REIT shares was suspended in January 2023. By that point, the company’s market value had fallen by more than 70 per cent.
Regulators circle as probe deepens
The scrutiny did not stop there. In 2024, the Financial Conduct Authority opened its own investigation into the fund. The Serious Fraud Office’s current operation is described as one of the largest arrest and search actions in its history, and officials have said such cases often involve millions of documents and can take years to conclude.
The company had also come under pressure after a report by Viceroy Research, a firm known for past corporate investigations, raised red flags about its business model.
Commenting on the case, solicitor general Ellie Reeves reportedly said in a news report that both investors and vulnerable people appeared to have been “let down”, adding that it was important for authorities to step in where bribery or wrongdoing was suspected.
The Serious Fraud Office has said its focus is now on advancing the investigation and establishing what happened to the money raised, and whether the homes bought under the scheme were used as promised. For now, many questions remain unanswered.
