Beware of land banking cons

People who buy large plots of land in the hope that it will increase massively in value after planning permission is sought are mistaken, according to experts.

The Financial Services Authority (FSA), which regulates UK financial transactions, has warned Brits that companies who offer such "land banking" services are a con.

Land Heritage is a firm which has now gone bust after offering people slices of land as investments, but without the necessary authorisation from the FSA.

As well as often being a dud investment, land banking is accused of ruining the countryside.

Kevin Fitzgerald, director of the Campaign to Protect Rural England, told The Guardian: "This county [Hertfordshire] is one of the hardest hit ... It''s attractive and has easy access to London and Cambridge. Housing is in short supply.

"So land banking sites are springing up all over the place. This is the home counties equivalent of the Costa timeshare."


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