What is the Serious Fraud Office investigating at Home REIT?

The SFO is investigating a £300 million bribery and fraud case concerning the past management of Home REIT.

Who has been arrested in the Home REIT investigation?

Six people have been arrested in connection with the £300 million bribery and fraud probe into Home REIT.

When did Home REIT face crisis and why?

Home REIT has been in crisis since late 2022 when an investor report questioned its business model and property valuations.

Home / Crime and Justice / Social Housing Giant Home REIT Faces £300M Bribery Probe

Social Housing Giant Home REIT Faces £300M Bribery Probe

15 Jan

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Summary

Six people arrested in a £300 million bribery and fraud probe into Home REIT.
The SFO is investigating the past management of the social housing landlord.
The company has been in crisis since 2022 over business model concerns.

Social Housing Giant Home REIT Faces £300M Bribery Probe

The Serious Fraud Office (SFO) has arrested six individuals in connection with a £300 million bribery and fraud investigation targeting the former management of Home REIT. This social housing investment trust, established in 2020 to provide homes for vulnerable populations including the homeless, has faced severe challenges since 2022.

Concerns regarding Home REIT's business model, property valuations, and tenant rent payment capabilities surfaced in late 2022, leading to its shares being suspended in January 2023. The SFO conducted searches in Altrincham, Maidenhead, and London, with assistance from the National Crime Agency, and even a property in Venice was searched with Italian authorities' help.

Further complicating matters, Home REIT faced probes from the Financial Conduct Authority and the Financial Reporting Council investigated its auditor, BDO. In an effort to survive, the company agreed to sell 700 properties for £123 million in late 2024. Investigations revealed significant failings in transparency and due diligence by its former investment adviser.