Six people have been arrested in connection with an alleged £300m bribery and fraud scheme involving a UK social housing fund, Home Reit. The Serious Fraud Office (SFO) raids seven sites across the country, including homes in Altrincham, Maidenhead, London, and Manchester, as well as a commercial address and a property in Venice, where Italian authorities assisted.
Home Reit was established two years ago to tackle homelessness and had ambitions to grow into a £1 billion business, aiming to take 10,000 people off the streets. The company raised £850 million from investors and used the funds to purchase and restore properties for rent by charities, with returns expected through rent payments. However, allegations of substandard accommodation surfaced, resulting in charities withholding rents.
Critics say vulnerable groups, including rough sleepers and veterans, were promised homes but received inadequate housing, while investors who funded millions of pounds were left without promised returns. The government's solicitor general, Ellie Reeves, described the allegations as "deeply serious" and called for answers from those responsible.
The company's shares have been under pressure since a report by Viceroy Research predicted its crisis, leading to a 70% value drop. A homelessness charity that was one of Home Reit's creditors has entered administration due to disputes over property conditions, including black mould and leaking ceilings.
The SFO's director of operations, Emma Luxton, described the company's meteoric rise and downfall as "chaotic" and said many questions remain unanswered. Home Reit stated it will assist the SFO in pursuing its investigations.
Home Reit was established two years ago to tackle homelessness and had ambitions to grow into a £1 billion business, aiming to take 10,000 people off the streets. The company raised £850 million from investors and used the funds to purchase and restore properties for rent by charities, with returns expected through rent payments. However, allegations of substandard accommodation surfaced, resulting in charities withholding rents.
Critics say vulnerable groups, including rough sleepers and veterans, were promised homes but received inadequate housing, while investors who funded millions of pounds were left without promised returns. The government's solicitor general, Ellie Reeves, described the allegations as "deeply serious" and called for answers from those responsible.
The company's shares have been under pressure since a report by Viceroy Research predicted its crisis, leading to a 70% value drop. A homelessness charity that was one of Home Reit's creditors has entered administration due to disputes over property conditions, including black mould and leaking ceilings.
The SFO's director of operations, Emma Luxton, described the company's meteoric rise and downfall as "chaotic" and said many questions remain unanswered. Home Reit stated it will assist the SFO in pursuing its investigations.
this whole thing is wild - £300m bribery & fraud scheme? that's like something out of a Bond movie 
, but in real life, people lost their homes and trust in social housing... i feel for those rough sleepers & veterans who were promised homes but got subpar conditions. the company's ambition to take 10k people off the streets is cool, but not if it means exploiting vulnerable groups 
. the whole thing just stinks of greed & poor governance - i'm so over the 'chaotic' rise and fall of Home Reit 
, where are all the accountability answers? 
like who wouldn't want to make a quid (£300m) by taking people off the streets? Sounds like a recipe for disaster, right? 
I mean, I'm no expert on social housing funds, but even I know that's not exactly how it works. It's like they took a page out of the 'get rich quick' guide and forgot to check if it was actually going to work 
. And black mould? Leaking ceilings? That's just a fancy way of saying "we screwed up" 
, but it turns out they were just lining their own pockets 
... I mean, what's the point of even having social housing if it's not gonna be decent? 
. It's like, come on, folks! Can't we learn from each other's mistakes? 
I swear, back in my day... 
i mean i get it ppl wanna make money but this is insane. and its not just that, vulnerable groups were promised a home but didnt even get that. its so sad 
idk what's gonna happen now but hopefully they get the people who did this taken down 
and the fact that investors were left without returns? shady business practices at its finest 
anyway, i guess we can say the hype has officially died for home reit 
...