More than £52m reserved for social housing at risk after collapse of investment firms
Summary
Over £52 million of public money meant for social housing is at risk after two investment companies linked to Heylo Housing went into administration. The government and housing regulator are working to protect taxpayers' money and keep about 3,500 social homes from moving into the private sector.Key Facts
- Two investment companies run by Heylo Housing, backed by BlackRock, have entered administration.
- About £52 million in public funds, granted from 2018 to 2023 for social housing, is now at risk.
- The money comes from Homes England, a government agency funding affordable housing projects.
- Around 3,500 social homes and their residents are affected but will not lose their homes or payments immediately.
- Heylo’s complicated structure means the homes are leased from investment firms, not directly owned by the regulated housing provider.
- The Regulator of Social Housing (RSH) has limited powers to intervene because of changes made in 2017.
- The situation reveals weaknesses in housing industry rules that allowed public money to go to for-profit companies without enough oversight.
- The RSH hopes another social landlord can buy the properties to keep them in the social housing sector.
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