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

Exclusive: 3,500 social homes could switch to private sector after companies run by Heylo Housing group go into administration

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.