Home REIT delays accounts again after rent trouble revelations

By:

City Editor

Add as a preferred source on Google
More than two-thirds of a government fund aimed at creating thousands of new homes in the UK remains unspent, despite launching over six years ago. 
In 2017, the British government launched a £4.2bn Housing Infrastructure Fund to help unlock 324,000 new homes.

Beleaguered property investor Home REIT has delayed the publication of its full-year accounts until beyond the end of January as it scrambles to get its books in order following revelations about the instability of its rental income and dilapidated property portfolio.

Home REIT, which suspended trading on the London Stock Exchange after delaying its full year results in December, said it would be forced to push back accounts again after auditor BDO requested greater details on its social housing portfolio.

“Whilst a significant amount of work has been undertaken, as part of the scope of the enhanced audit procedures, BDO has requested the provision of substantial data sets across what is a granular portfolio of over 2,400 properties,” Home REIT said in a statement.

“Whilst the company expects to be able to provide this additional information, BDO has advised that it will not be able to conclude its work and internal review process in advance of 31 January,” the company said.

The delays strike another blow to the firm after a series of revelations over the instability of its rental income.

Morning Wire revealed last week that the firm has struck a previously undisclosed £5.5m rent relief deal with its biggest tenants, Big Help, due to the run down state of its properties. Home REIT then looked to renege on the deal due to the troubles it finds itself in.

The firm is now facing a battle with both Big Help and Noble Tree to recover rent despite previously claiming all its rent was paid in full.

Home REIT reiterated claims today that it “funds the acquisition and creation of high-quality properties” and said it had appointed specialist social housing property manager Simpact group.

However, the claims have been rubbished by a tenant, which said that properties in some cases had no hot water and required thousands of pounds of refurbishment from the charity’s own books. Home REIT told Morning Wire last week that it was up to charities to fund the upkeep of their properties after acquisition.