The Serious Fraud Office has arrested six individuals in connection with a suspected £300 million fraud involving Home REIT, a UK-based real estate investment trust. The operation targeted offices in central London and follows a months-long investigation into alleged financial misrepresentation and asset inflation.
- Six individuals arrested in London on January 14, 2026, in connection with a suspected £300 million fraud
- Home REIT alleged to have inflated asset values by up to 35% between 2022 and 2023
- London house prices declined for six consecutive months through October 2025
- Home REIT’s shares fell 42% on January 15, 2026, following the SFO action
- £220 million in new debt financing secured between January 2023 and June 2024 via manipulated valuations
- EY UK under review for potential audit failures during 2022–2024
The Serious Fraud Office (SFO) executed coordinated raids across multiple London locations on January 14, 2026, resulting in the arrest of six individuals suspected of orchestrating a large-scale fraud at Home REIT. Authorities allege that the scheme involved the deliberate overvaluation of residential properties, including a portfolio of terraced homes in Pimlico and other high-value areas, to secure inflated loan facilities and mislead investors. The investigation centers on discrepancies between reported asset values and independent valuations conducted during 2023 and 2024. The fraud is believed to have spanned over two years, with Home REIT reporting a 35% increase in net asset value in 2023, despite stagnant or declining property prices in targeted boroughs. Official data shows London house prices fell for a sixth consecutive month in October 2025, marking the longest decline since the 2008 financial crisis. The alleged manipulation of asset valuations allowed Home REIT to access £220 million in new debt financing between January 2023 and June 2024, which was reportedly misallocated to non-property ventures. Market analysts note that the SFO’s intervention has triggered immediate volatility in Home REIT’s share price, which dropped 42% in early trading on January 15, 2026. The company’s credit default swap spreads widened by over 180 basis points, signaling heightened default risk. Regulators have also initiated a review of the firm’s auditor, EY UK, over potential lapses in due diligence during annual audits for 2022–2024. The case underscores mounting scrutiny on UK investment trusts, particularly those utilizing complex valuation methodologies. Other REITs with similar exposure to London residential assets—such as Capital & Counties Properties and British Land—are under increased investor and regulatory scrutiny. The SFO has warned that further arrests and asset seizures are possible as the investigation progresses.