Server 2012 R2 - Home folder was not created because you do not have create access on the server

I have a new Virtual server on ESXi running Server Standard 2012 R2. It has been joined to the domain and set as a secondary DC. There is a new D: driver where I need to create Home folders from the AD. However when I try to change the home folder to point to the new server I get the message;

The '\\******' home folder was not created because you do not have create access on the server. The user account has been updated with the new home folder value but you must create the directory manually after obtaining the required access rights.

The home folder is shared and the Domain Administrator has FULL access to it and indeed the whole drive.

What am I missing?

Thanks,

Colin