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The Serious Fraud Office (SFO) has detained six individuals as part of an investigation into alleged bribery and fraud involving the former leadership of the social housing firm Home REIT, with suspected losses amounting to around £300 million. Early on Wednesday, SFO officers conducted raids at six different locations across the United Kingdom tied to the company’s previous management.
Home REIT, based in London, had attracted investments with the promise that funds would be directed towards purchasing and refurbishing properties. These homes were intended for rental to publicly funded charities and other groups providing housing for vulnerable populations such as rough sleepers, veterans, and individuals battling addiction. Over a span of three years, Home REIT managed to raise £850 million through investments before trading of its shares was halted on the London Stock Exchange in January 2023.
According to the SFO, the business model anticipated generating investor returns from the rental income. During a raid in north London, Andy Parratt, deputy head of the SFO’s fraud and bribery division, emphasized the societal impact of the investigation, noting that it “impacts some of the most vulnerable people in society.” He further highlighted the scale of the operation, with over 150 staff members involved, while stating that the probe is still in the early stages as investigators seek to determine exactly what occurred with Home REIT’s management leading to its collapse. Additional searches and arrests took place in Altrincham, Maidenhead, and Manchester.
Home REIT specialized in providing supported housing through self-contained flats and houses of multiple occupancy. In a 2021 impact report, the organisation revealed that it collaborated with 17 non-profit housing partners and housed over 3,000 individuals. However, by November 2022, an investor report raised serious concerns about the company’s property valuations and tenant rent-paying capabilities. Solicitor General Ellie Reeves remarked on the situation, stating: “Vulnerable people, including rough sleepers and veterans, were promised homes, while investors who funded millions of pounds were promised returns. Both groups deserve answers.” The arrested individuals—a group of five men and one woman aged between 40 and 80—face suspicion of fraud and bribery. Emma Luxton, SFO’s director of operations, reflected on the company’s dramatic trajectory, saying, “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.
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