Former Home REIT Shareholders Launch High Court Compensation Bid

Eight hundred former shareholders in the scandal-hit housing investment firm Home REIT have filed a compensation claim in the High Court, alleging they suffered losses due to misleading statements and omissions about the company. The legal action, brought by law firm Harcus Parker, targets Home REIT, its directors, its former investment adviser Alvarium Home REIT Advisors Limited, and former alternative investment fund manager Alvarium Fund Managers (UK) Limited.

The claim includes statutory securities claims under the Financial Services and Markets Act 2000, as well as allegations of negligent misrepresentation. Investors contend they were presented with a misleading picture of Home REIT, encompassing the security of its rental income, the financial stability of its tenants, its social impact claims, and the acquisition, use, and valuation of its property portfolio. These alleged misrepresentations, the claim states, were crucial to their decision to invest and the price they paid for their shares.

Home REIT raised over £850 million in its first three years, promising investors that their funds would acquire accommodation for vulnerable individuals, including rough sleepers, veterans, and those with addiction issues. Investors were reportedly told that properties would be leased on long-term arrangements to organizations providing accommodation, with rental income supported by government-funded Housing Benefit.

Harcus Parker asserts that the reality was significantly different, with some properties intended for vulnerable people reportedly being marketed to students, professionals, and for holiday lets. The law firm stated its motivation for bringing the case is to hold responsible parties accountable when a company raises money under the guise of social good, but the investment proposition is alleged to have been misleading.

Nate Barber, Partner at Harcus Parker and lead lawyer for the claim, commented, "Home REIT was presented to investors as offering financial returns while helping to tackle homelessness. Many of our clients invested because they believed in both the financial proposition and the social purpose behind it." He added, "What has happened since is extraordinary. Home REIT’s property portfolio has been sold, its four wholly owned subsidiaries are now in liquidation, and many investors have suffered significant losses. They are entitled to understand how that happened and, where they were misled, to seek compensation from those responsible."

Home REIT's difficulties escalated after a November 2022 report by short-selling research firm Viceroy Research raised concerns about the fund's tenants, rental income, property transactions, and valuations. The company's shares were suspended from trading on the London Stock Exchange in January 2023.

Investigations into the firm are ongoing. The Financial Conduct Authority began an investigation in February 2024, and the Serious Fraud Office launched its own inquiry into allegations of fraud and bribery, leading to the arrest of six individuals who have since been released under investigation.

At its peak, Home REIT owned 850 properties. The sale of its final four sites was completed at the beginning of September 2026, and on September 17, 2026, its four wholly owned subsidiaries were placed into creditors' voluntary liquidation.

The current board of Home REIT, which is undergoing a managed wind-down, stated in response to the legal claim, "The Company cannot comment any further at this stage and a further announcement will be made at the appropriate time."