The £52m social housing fund is on the brink of disaster after one of England's fastest-growing housing providers, Heylo Housing group, suffered a partial collapse. The company's two investment firms have entered administration, sparking fears that thousands of families could be priced out of affordable accommodation as their homes are transferred to private developers.
The potential impact is stark: up to 3,500 social homes could be lost from the public sector and sold to private developers at market value. This would be a devastating blow for low-income families who rely on social housing for a place to call home. The collapse of Heylo Housing's investment companies has left the Government facing intense scrutiny over its handling of the crisis.
Heylo Housing group is backed by Blackrock, one of the world's largest investment firms, and has been a major player in the UK's social housing market with a portfolio of over 20,000 homes across England. The collapse of its investment companies raises questions about the risks associated with private investment in social housing.
The Labour Party has seized on the crisis, with Shadow Housing Secretary Steve Reed calling for immediate Government action to protect the social housing fund and ensure that the homes are not transferred to private developers. While the Ministry of Housing, Communities and Local Government is expected to be involved in discussions to find a solution, the Department's response so far has been muted.