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I go somewhere in the middle - use the first anchor in the source to point to the homepage using the business/brand name (which may or may not be keyword friendly) and including a link using the word "home" to ensure usability.
The lowest risk approach is to avoid being pushy with internal anchors and ensure that external links pick up any shortfall.
I have put keywords in the anchor text on my article pages, so it could be this.
Its not a major penalty - what do you suggest - amend the anchor text to 'home' and resubmit my sitemap?
Also would it be a manual penalty or just part of the google algorithm?
Manual penalties are a rare breed, and indeed, algorithmic penalties are not that common either. What usually happens is that you do something that inadvertently decreases your perceived relevance, rather than increasing it. This can be the wrong combinations of words, the wrong anchor text - lots of factors, I'm afraid.