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Revealed: Heylo set for £289m internal write-down after administrations
Heylo Group expects to take a £289m internal write-down following the administrations of four subsidiaries, reports show.
Heylo Group expects to take a £289m internal write-down following the administrations of four subsidiaries, reports show #UKhousingThe shared ownership specialist expects to write off £289.1m in share capital from the collapse of HH No. 1 (HH1), one of its investment vehicles. The figure is an internal write-down within the group, rather than an operational cash loss.
The figure comes from a statement of affairs prepared by the directors of the company for administrators PriceWaterhouseCoopers (PwC).
According to the document, Heylo expect all of HH1’s external debts – to creditors including Homes England, HMRC and the law firm Linklaters – to be repaid in full. If this were achieved, Inside Housing Living understands there would be no impact on the wider group’s operational liquidity, solvency or ability to trade.
However, it is too early to know what the actual dividends to creditors will be as PwC has not yet completed the sale of the homes.
HH1 is one of four Heylo subsidiaries that fell into administration in March. Together they own a third of Heylo’s 10,500 homes, which are expected to be sold to new owners by PwC.
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It is understood that residents’ leases and management of their homes remain unchanged.
According to HH1’s statement of affairs published on Companies House, HH1 owned investment properties valued at £506.7m.
Assuming its homes are sold as valued, this would raise enough to pay back the company’s secured debt of £458.6m in full, plus £49.6m to unsecured creditors.
That would leave £41.3m of cash left, which is not enough to repay £330.5m in share capital. HH1’s shareholders are other Heylo subsidiaries, which are ultimately owned by Heylo Group.
The parent company would therefore receive just 12p to every £1 for its shareholding in HH1, meaning the value of its shares will be written off by 88%.
The statement of affairs shed further light on HH1’s creditors, which Heylo assumes will be repaid in full.
HH1’s external debt facility of £458.6m is credited in the report to US Bank Trustees. Inside Housing Living understands that US Bank Trustees did not make any advances, but is acting solely as security agent.
It was previously reported that BlackRock is a lender to the subsidiaries in administration, as well as other large commercial organisations that have significant investment elsewhere in the social housing sector.
Meanwhile, HH1’s biggest unsecured creditor is Homes England. HH1 owes the government’s housing and regeneration agency £46.5m, which Heylo expects will be repaid in full.
Heylo has not received grant from Homes England since 2022, when it was deemed non-compliant by the Regulator of Social Housing.
Elsewhere, HH1 owes HMRC £1.1m and Linklaters £492,836, both of which Heylo expects to repay in full.
Alongside HH1, Heylo published statements of affairs for three other Heylo subsidiaries: HH1 New Holdings, HH1 Holdings and HH5.
HH No.5 owned investment properties valued at £79.9m. Assuming its homes are sold as valued, this would leave a £10.5m surplus once secured debt of £69.9m and unsecured debt of £6.7m is repaid.
Heylo deemed HH No. 1 Holdings and HH No. 1 New Holdings to have an estimated realisable value of £0 because they hold no direct physical assets or cash. These entities sit above HH1 and do not own any property assets directly.
Heylo’s statement of affairs wrote off a significant intercompany loan of almost £36m between HH1 and HH No. 1 New Holdings, which serves as the primary borrower for the external debt facility.
It is understood this intercompany loan arose because HH1 used its property cashflows to directly service the interest and principal payments for the debt held in HH No. 1 New Holdings.
Heylo told Inside Housing Living that its statement is unchanged from when the administrations were revealed in March.
It said at the time: “Heylo Housing is committed to delivering affordable homes across England, in close partnership with local authorities, house builders and investors.
“We can confirm that investment pods HH No.1 New Holdings Limited, HH No.1 Holdings Limited, HH No.1 Limited and HH No.5 Limited have entered into administration, which is being handled by PricewaterhouseCoopers LLP. All other entities within the Heylo Housing Group remain unaffected.
“The team at Heylo is working closely with the administrators, and our customers remain our top priority to ensure a smooth and orderly transition. As this is an ongoing matter, we are unable to comment further at this stage.”
Last month, Inside Housing Living published an in-depth analysis of why the Heylo administrations happened and what might happen next.
Update: at 4:30pm, 14 May 2026
This article originally stated that the document is an administrators’ report and that PwC assumes the creditors will be repaid in full. It was updated to clarify that this is Heylo’s assumption, not PwC’s, because the document is a statement of affairs prepared by the directors of the company. It is too soon to say what the expected dividends to creditors will be as PwC has not yet completed the sale of the homes.
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