The UK's Serious Fraud Office (SFO) has confirmed it has begun a major criminal investigation into the collapsed social housing provider Home REIT, executing raids and making arrests across the UK and in Italy.
Raids and Arrests Across the UK and Venice
The financial crime unit said it carried out operations on Wednesday 14 January 2026, including searches at residential addresses in Altrincham, Maidenhead, and London. A commercial site in Manchester was also raided.
In a coordinated international move, the SFO, with support from Italy's Guardia di Finanza, searched a property in Venice. The probe centres on suspicions of fraud and bribery potentially totalling £300 million.
The investigation, first reported by City AM, will examine whether fund managers linked to the former London-listed company misled investors and the market regarding the firm's financial health and the stability of its tenants.
A Meteoric Rise and Chaotic Downfall
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. Today we conducted a major operation to advance our inquiries into suspected bribery and fraud," Luxton added.
Home REIT floated on the stock market in 2020 with a mission to help alleviate homelessness. Its strategy involved buying properties to lease to charities and housing providers. However, its model began to unravel after a critical short-seller report in October 2022 raised alarms about its tenant base.
Suspension and Forensic Accounting
The company's shares have been suspended since January 2023 after it failed to publish its annual accounts on time. A string of its largest tenants have entered insolvency since 2022.
Following internal allegations of wrongdoing, Home REIT's board appointed external forensic accountants from Alvarez & Marsal in February 2023. While the full report remains unpublished, the company acknowledged it uncovered "certain undisclosed potential outside business interests and undeclared potential conflicts of interest."
The SFO's criminal investigation now seeks to determine the full extent of any misconduct, marking a significant escalation in the scandal surrounding what was once a flagship social housing investment.
