Serious Fraud Office announces investigation into listed social housing company

The SFO said the suspected offending has an estimated value of £300 million.

Home REIT, listed on the London Stock Exchange in 2020, sold investment in its leasing of thousands of homes across the UK, raising more than £850 million in its first three years of trading.

The SFO said: “Investors were told that their money would be used to buy and restore properties that would be block-let to publicly funded charities and Community Interest Companies to house rough sleepers, veterans and people struggling with addiction. Returns would be generated to investors from rent payments.”

However, in November 2022, an investor report into Home REIT raised multiple concerns about the company including the valuation of its properties and the ability of its tenants to pay rent.

The social housing company suspended trading on the London Stock Exchange in January 2023.

THe SFO revealed it has now arrested six people and searched seven sites in connection with its fraud and bribery investigation.

Emma Luxton, Director of Operations at the Serious Fraud Office, 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. Today we conducted a major operation to advance our inquiries into suspected bribery and fraud.”

Home REIT has been approached for comment.

Lottie Winson