WIREDGOV

Land Registry has published a guide warning against so-called land banking investment schemes which are often advertised as offering big returns on investments in land.

The government department says many investors have handed over thousands of pounds for land that has little or no chance of being developed.

Plots of land are offered for sale, often online, and sometimes with the claim that there will be huge returns when planning permission is obtained for housing or other development. But the land is usually in areas protected from development by planning law.

Those operating land banking schemes often claim that they have well known banks, other lending institutions and established developers as their partners in the schemes when this is not the case.

Land Registry Head of Corporate Legal Services Mike Westcott Rudd

said:

"Members of the public have been misled about the prospects of obtaining planning permission or that planning permission has already been granted.

"Sometimes they are told well known banks, lenders and established developers are partners in the schemes when this is not the case.

"In some extreme cases forged Land Registry letters have been produced to suggest that there is official Land Registry planning approval. However, Land Registry plays no part in the planning process."

Public Guide 021 Land banking schemes - buying land in England and Wales claimed or thought to have development potential can be downloaded at www.landregistry.gov.uk or is available free from any Land Registry office.