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Sofa Spud

What Of Those Investment Plot Scams?

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I wonder what the situation with those investment plot scams is. I mean those ones where someone buys up agricultural land with very little hope of getting planning permission, draws up a fictitious housing estate plan and sells off plots to investors. The idea was that pressure for housing was certain to lead to relaxation of planning and greenbelt controls and the plots would increase in value.

There was a time when such an investment looked almost viable - the plots were cheap compared to genuine building land and if and when one site broke the planning barrier, that was likely to push up all investment plot values.

I've just looked at one such scheme on the net and they've still got lots of plots for sale, but at higher prices that a year or two ago.

Surely these schemes are burnt toast now (they were always toast!)

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I wonder what the situation with those investment plot scams is. I mean those ones where someone buys up agricultural land with very little hope of getting planning permission, draws up a fictitious housing estate plan and sells off plots to investors. The idea was that pressure for housing was certain to lead to relaxation of planning and greenbelt controls and the plots would increase in value.

There was a time when such an investment looked almost viable - the plots were cheap compared to genuine building land and if and when one site broke the planning barrier, that was likely to push up all investment plot values.

I've just looked at one such scheme on the net and they've still got lots of plots for sale, but at higher prices that a year or two ago.

Surely these schemes are burnt toast now (they were always toast!)

The funny thing is that the schemes substantially reduced the chances of houses being built on the land. No developer in their right mind wants to have to negotiate with 100s of rapacious 'property investors' before they can buy a site to put a new estate on and no council wants to spend the money on compulsory purchase orders. The same approach has been used by NIMBYs in some rural areas too - they club together to buy the field next to their houses and then split them into small plots owned by them, their families, friends etc. It's far cheaper and easier than trying to challenge a planning application.

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I assumed the idea was that the ultimate owner, possibly after the plot had changed hands several times at ever increasing prices (LOL), would have their plot developed individually.

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I assumed the idea was that the ultimate owner, possibly after the plot had changed hands several times at ever increasing prices (LOL), would have their plot developed individually.

Problem with individual activities is who would finance and put in estate roads, utilities, communal facilities etc?

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Problem with individual activities is who would finance and put in estate roads, utilities, communal facilities etc?

I didn't think of that. I wonder if anyone else did?

Apparently, with some of these schemes, owners didn't even have the right to go and sit on their empty plot, even if they could pinpoint where it was.

Edited by Sofa Spud

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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