More than 800 current and former shareholders of Home Reit, a housing investment company, have initiated legal proceedings in the High Court seeking compensation for significant financial losses. The claim, brought by law firm Harcus Parker on behalf of the investors, alleges that Home Reit, its former directors, and associated advisers made misleading statements and omissions regarding the company’s business model and property portfolio.

Home Reit, which floated in 2020, raised over £850 million from investors within its first three years, intending to acquire accommodation for vulnerable groups such as rough sleepers, veterans, and individuals battling addiction. The firm marketed these investments as supported by stable rental income derived from Housing Benefit payments. However, the claim contends that the reality diverged substantially from this narrative. According to Harcus Parker, many properties purportedly designated for vulnerable tenants were instead leased to students, professionals, and holidaymakers.

The legal proceedings also name Home Reit’s former investment adviser, Alvarium Home Reit Advisors, and its former fund manager, Alvarium Fund Managers (UK), both of which have since faced financial difficulties—Alvarium Home Reit Advisors is in liquidation, while Alvarium Fund Managers went into administration in 2025.

Harcus Parker has not disclosed the exact compensation amount sought but indicated it is expected to exceed £120 million. Nate Barber, a partner at the law firm, criticized the statements made by Home Reit regarding its investment strategy and tenant base, describing them as “simply not true.” Barber highlighted allegations of “sweetheart deals” with linked entities, acquisition of properties unfit for tenancy, and the renting of some homes as holiday lets rather than to housing associations, as initially claimed to investors.

Concerns about Home Reit's operations were first raised in 2022 when short-seller Viceroy Research questioned the nature of tenants and the prices paid for some properties. It later emerged that rental income was minimal, and a 2023 external valuation reduced the portfolio’s worth to less than half of its purchase price. The company also became the subject of a Serious Fraud Office investigation, resulting in the arrest of six individuals on suspicion of bribery and fraud in early 2023.

In July 2024, following a management change with AEW replacing Alvarium, Home Reit’s board decided to wind down the company. Its remaining assets were sold over the summer, effectively leaving it as a shell entity still paying AEW substantial monthly fees.

Home Reit’s board has refrained from commenting in detail on the legal claim so far but stated that a response would be provided in due course. The company has previously indicated it intends to hold those it deems responsible for wrongdoing accountable, particularly pointing to Alvarium as a party of interest in the misconduct allegations.