Land Banking Scams
The Planning Portal has recently reported a warning from the Insolvency Service that land banking scams are on the increase. Land banking scams involve a large plot of land, usually a field, being bought be ‘developers’ and then being subdivided into numerous smaller plots which are then often sold at auction. The marketing information usually suggests that there is a good prospect of planning permission being designated in the future. These parcels of land are nearly always sold without the benefit of planning permission and any promises that planning is likely should serve as a warning to purchasers. Ensure you check with your local authority, or with a planning consultant as to whether a particular parcel of land is likely to secure planning consent.
Rob Duncan Planning Consultancy offers an efficient site appraisal service which assesses current and emerging planning policies relevant to that site, and appraises the likelihood of success in the short, medium and long term. If you have a parcel of land which you are considering purchasing or would like to develop then get in touch for an initial free discussion.
