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Executive Sadman

Land Banking Reaches New Crazy Heights.

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Landbanking...

Land banking companies divide land into smaller plots to sell it to investors on the basis that once it is available for development it will soar in value. However, the land is often in areas of natural beauty or historical interest, with little chance of it being built on.

http://www.fca.org.uk/consumers/scams/investment-scams/land-banking

...was considered enough of a problem from 2000-2008 for the FSA to devote some text to it. Typically, land would be bought at £3-5k an acre, split into tenths, each tenth being sold on for £5-10k...giving the seller a tenfold or more return.

Seen a few come back again...this just sold today for £66k!!!

http://www.auctionhouse.uk.net/hertfordshireandwestessex/auction/lot/59974

Who is buying this stuff?! Foreign investors who dont understand/abide by UK planning law?

What is someone going to do with 0.13 acres in the middle of a field...not big enough to use as a paddock. Not big enough to use as anything much.

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Part of bigger trend of waiting for the on-purpose-policy social 'crisis' to force release of greenbelt land for development so they can pocket the massive taxpayer price gift by selling it, whereupon it still doesn't actually result in builds and sales of affordable homes. Because that would risk lowering prices everywhere else.

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Landbanking...

Land banking companies divide land into smaller plots to sell it to investors on the basis that once it is available for development it will soar in value. However, the land is often in areas of natural beauty or historical interest, with little chance of it being built on.

http://www.fca.org.uk/consumers/scams/investment-scams/land-banking

...was considered enough of a problem from 2000-2008 for the FSA to devote some text to it. Typically, land would be bought at £3-5k an acre, split into tenths, each tenth being sold on for £5-10k...giving the seller a tenfold or more return.

Seen a few come back again...this just sold today for £66k!!!

http://www.auctionhouse.uk.net/hertfordshireandwestessex/auction/lot/59974

Who is buying this stuff?! Foreign investors who dont understand/abide by UK planning law?

What is someone going to do with 0.13 acres in the middle of a field...not big enough to use as a paddock. Not big enough to use as anything much.

Perhaps they're going to plant tulips.

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