Hundreds of investors sue Home REIT over alleged misrepresentations

Hundreds of current and former shareholders in Home REIT have initiated High Court proceedings, seeking compensation for alleged misrepresentations by the company's leadership. The lawsuit, brought by law firm Harcus Parker on behalf of nearly 800 investors, contends that corporate executives made material misrepresentations and used investor funds in ways contrary to their representations.

Home REIT's share price experienced a significant decline, falling by approximately 70% during 2022. This downturn followed allegations and media reports concerning the company's operations and the accuracy of its market reporting. Consequently, the company's shares were suspended from trading on the London Stock Exchange in January 2023.

In December 2023, Home REIT disclosed a "very material reduction" in the valuation of its property portfolio. The August 2023 valuation represented only 42.26% of unaudited historical acquisition costs, a reduction attributed to a reassessment of property quality and the financial strength of its tenants. The Regulator of Social Housing has also raised concerns, with deputy chief executive Jonathan Walters noting that housing providers made decisions that, from a rational business perspective, were questionable, appearing to transfer risk to unsophisticated counterparties in potentially unsustainable business models.

Trading in Home REIT shares resumed in April 2026 after more than three years of suspension. Subsequently, the company sold its remaining property portfolio, and its four wholly owned subsidiaries entered creditors' voluntary liquidation in September 2026. Many investors have incurred losses or continue to hold shares at a reduced value.