More than 52m reserved for social housing at risk after collapse of investment firms

"More than 52m in public money earmarked for social housing is at risk after the partial collapse of one of the England's fastest-growing housing providers. Two of the investment companies run by the Heylo Housing group, which is backed by the asset managers BlackRock, have gone into administration, leaving the government regulator scrambling to find a rescue deal to protect taxpayers' money and prevent 3,500 social homes switching to the private sector."

"One of the companies, or investment pods, in the Heylo group, went into administration owing 46.46m in unsecured credit to Homes England the government agency that allocates public money for social housing. The other company owes Homes England 6.21m. Homes England has estimated its total grant exposure is nearer 43m. This was granted from 2018 to 2023 in its shared ownership affordable homes programme under which residents could buy a partial share of the homes and pay rent on the remaining share."

"This grant is typically recycled when it is paid back to provide more social homes, and could help fund about 500 new homes for social rent, but it would be lost if an insufficient bid is made for the stricken companies. The administrators, PWC, have assured about 3,500 residents in more than 100 council areas they will not lose their homes and should continue to pay their mortgage and rent as usual. The regulator is hoping the homes can stay in the social housing sector, if it is able to persuade another regulated landlord to buy the stock."

Two investment companies run by the Heylo Housing group entered administration, putting public social-housing money at risk. The government regulator is seeking a rescue deal to prevent about 3,500 social homes from moving to the private sector. One investment pod owes £46.46m in unsecured credit to Homes England, and another owes £6.21m, with Homes England estimating total grant exposure around £43m. The grants were provided from 2018 to 2023 under a shared ownership affordable homes programme, where residents buy partial shares and pay rent on remaining shares. Grant repayments are typically recycled to fund additional social rent homes, but could be lost if bids fail. Administrators have told residents their homes will not be lost and that mortgage and rent payments should continue as usual.

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