The Serious Fraud Office (SFO) has launched one of its largest ever operations, arresting six individuals and executing multiple searches as part of a major investigation into social housing provider Home REIT. The company, which raised hundreds of millions from investors to house homeless and vulnerable people, is suspected of fraud and bribery offences estimated at £300 million.
Major Dawn Raids and Arrests Across the UK
In a coordinated operation on Wednesday morning, SFO investigators, supported by the National Crime Agency, carried out seven searches and made arrests at residential addresses in Altrincham, Maidenhead, and several locations across London. A commercial site in Manchester was also searched. In a significant international element, Italian financial police, the Guardia di Finanza, are searching a home address in Venice.
Five men and one woman, aged between their 40s and 70s, were arrested and are now being questioned. The scale of the operation marks it as one of the most substantial arrest and search missions in the SFO's history. The agency has vowed to progress the complex case, which can involve millions of documents and often takes years, as swiftly as possible.
The Meteoric Rise and Chaotic Fall of Home REIT
Home REIT was launched with a seemingly noble mission. Between 2020 and 2023, it raised a staggering £850 million from investors on the London Stock Exchange. The firm's pitch was compelling: it would use the capital to purchase and refurbish properties across the UK, which would then be block-leased to charities and Community Interest Companies to provide accommodation for society's most vulnerable. This included rough sleepers, military veterans, and people battling addiction. Investors were promised returns generated from the rent payments.
However, by 2022, serious concerns began to surface. An investor report flagged worries about the true valuation of the company's property portfolio and the financial viability of its tenants. Later that year, a legal claim was brought against Home REIT by a group of investors. The company's shares were suspended from the London Stock Exchange in January 2023, and in 2024, the Financial Conduct Authority opened its own investigation.
"Let Down": Investors and Vulnerable People Allegedly Betrayed
Law firm Harcus Parker, representing investors, has detailed alarming evidence. They allege that properties supposedly dedicated to vulnerable individuals were instead being privately rented on platforms like Zoopla and SpareRoom, or even advertised as holiday lets on Booking.com. Furthermore, some local authorities reportedly found the accommodation unsuitable for its intended purpose, denying it crucial 'exempt accommodation' status under housing benefit rules.
Solicitor General Ellie Reeves threw her weight behind the SFO probe, stating the case was "doubly important" because both investors and vulnerable people appear to have been "let down." She told The Mirror, "This was a scheme that was supposed to help some of the most vulnerable in society... and people were encouraged to invest in this scheme to support them."
Emma Luxton, Director of Operations at the SFO, summarised the situation: "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."
