Major social housing provider accused of £300m in bribery and fraud offences

The UK Serious Fraud Office has launched a bribery and fraud investigation into Home REIT — a listed UK social housing company. This case highlights the scale of bribery concerns currently affecting the housing sector.

In total, the offences have an estimated value of £300m, with bribery suspected as a significant factor.

Home REIT owned properties, which they claimed were for those who are vulnerable or experiencing homelessness.

SFO investigators carried out raids and made arrests at homes in Altrincham, Maidenhead, and London, as well as a commercial site in Manchester. The National Crime Agency assisted. Indeed, such operations are crucial in tackling bribery and safeguarding public assets.

Italian authorities also assisted with the search of a property in Venice.

According to Inside Housing, Home REIT was in the process of winding down its operations. It was attempting to sell its assets by the end of the year to “pay off its debts”.

However, it now appears that the company was listing homes intended for vulnerable or homeless individuals on Zoopla, for the private rented sector instead.

‘Multiple concerns’

According to the SFO, Home REIT:

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 company informed investors that it would use their money to buy and restore properties. They would then block-let them to publicly funded charities and Community Interest Companies. They would use them to:

house rough sleepers, veterans and people struggling with addiction.

However, in November 2022, an investor report into Home REIT raised “multiple concerns”. This included how it valued its properties and the tenant’s ability to pay rent. It suspended trading on the London Stock Exchange.

The accommodation, which was meant to be used to “exclusively tackle homelessness”, was instead found to be unsuitable for vulnerable individuals. Some were being advertised for students and professionals on Zoopla, whilst others were listed as holiday lets. The SFO also found evidence that Home REIT was allowing the companies selling its property to make “substantial profits”, suggesting bribery may have influenced such profits.

Solicitor General Ellie Reeves MP said:

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.

Featured image via the Canary