The Serious Fraud Office (SFO) has launched a major investigation into a London-listed social housing fund, arresting six individuals and executing seven raids across the UK and Italy.
Meteoric Rise and Chaotic Downfall
The probe centres on Home Reit, a property investment trust that was established in 2020 with the stated mission of tackling homelessness. The company raised a substantial £850 million from investors, promising to buy and refurbish properties to be leased to charities housing rough sleepers, veterans, and those battling addiction. Investor returns were to be funded by rental income.
At its peak, Home Reit harboured ambitions to become a £1 billion business and help take 10,000 people off the streets. However, its trajectory shifted dramatically as it faced allegations of providing substandard accommodation, leading some charity tenants to withhold rent payments due to conditions including black mould and leaking ceilings.
SFO Action and Suspected Offending
The SFO, assisted by the National Crime Agency, conducted searches and made arrests at residential addresses in Altrincham, Maidenhead, and London, plus a commercial property in Manchester. In a coordinated international move, a further raid was carried out at a property in Venice with help from Italy's Guardia di Finanza.
The agency estimates the scale of suspected offending at £300 million. Emma Luxton, the SFO’s Director of Operations, stated: "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."
Investor and Charitable Fallout
The company's troubles became public after a critical report by short-seller Viceroy Research. Trading in Home Reit shares was suspended by the London Stock Exchange in January 2023, by which time the company's market value had plummeted by over 70%.
The situation deteriorated further for its charitable tenants. In June 2024, the Noble Tree Foundation, one of Home Reit's larger charity creditors, entered administration and ceased rent payments. The charity had previously been in a dispute with the fund, withholding rent due to the poor condition of its properties.
Solicitor General Ellie Reeves emphasised the seriousness of the case: "The allegations in this case are deeply serious. Vulnerable people, including rough sleepers and veterans, were promised homes, while investors who funded millions of pounds were promised returns. Both groups deserve answers."
Home Reit, which has stated it is in a process of "managed wind-down", confirmed it is aware of the SFO's actions and will provide any necessary assistance to the investigation.
