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Following this weekends damning expose in the Sunday Times we thought it was worth summarising some of the key points for you. Here at North Fox we have long believed many of these so called ‘investments’ that purport to have Government backing and double digit returns to be extremely dubious at best.

 

The below is summarised from the Sunday Times article and other sources:

Investors in social housing schemes are facing significant challenges due to recent fraud investigations and the collapse of key companies in the sector. Citygate Housing Limited, which had promised annual returns of 20% by marketing itself as an ethical investment opportunity, is under scrutiny. The City of London Police’s Economic Crime Department has arrested four directors on suspicion of fraud and money laundering offenses, and the company’s online presence has vanished.

Another company under investigation is Social Housing Holdings Limited, which similarly offered attractive returns to investors. These developments have raised concerns about the regulation and ethical practices of such investments. Critics argue that these schemes exploit vulnerable populations and lack proper oversight from authorities like the Financial Conduct Authority (FCA).

Additionally, companies like Impact Living Properties Limited and Unique Property Investment Group, although not currently under investigation, have been offering high returns with questionable practices, such as unregistered claims and misleading affiliations with charities. The situation highlights the need for thorough due diligence and regulatory scrutiny in the social housing investment sector to protect both investors and the communities these schemes purport to serve.

The broader context of fraud in the social housing sector is also concerning, research suggests that at least 148,000 social homes in England could be subject to some form of tenancy fraud.

These issues underscore the importance of robust regulatory frameworks and due diligence to protect both investors and vulnerable populations in the social housing sector. Before making a purchase check and double check and if you have any doubts give one of the team here at North Fox a call we would love to hear from you.

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