There have been several warnings most notably from the Land Registry regarding Land Banking Schemes.
These are schemes whereby it is claimed that plots of land are sold off to individuals with a view to the fact that they can be developed in the future and a profit is made by all the holders of the individual plots. The reality is that there is little or no chance of the land ever being developed.
The FSA have estimated that these schemes have cost UK investors as much as £200 million.
If you are thinking of buying into such a scheme the Land Registry website has some good guidance for what you need to look out for and things to consider before any commitment is made.
The guide recommends that anybody considering buying land for its investment potential should consult an independent professional adviser registered with the Royal Institute of Chartered Surveyors and for legal advice the Law Society
Even where the land does have development potential, subdivision into small plots held by different owners may make it less attractive for acquisition by a company seeking to develop the site.
Should you require any advice in relation to this please contract William James on either email@example.com or telephone 01623 448317