What is a land banking scheme?
A typical land banking scheme works like this: a scammer buys a field on the edge of a village and subdivides it into small “building plots,” which are then sold at prices well below the market rate for genuine building land, typically just a few thousand pounds each.
The lure is the suggestion that the land is likely to be allocated for housing development in the future, and that when that happens, the plots will rocket in value. Buyers are told they are getting in early on a sure thing.
The reality is almost always the opposite. The land is agricultural, there is no genuine prospect of planning permission for residential development, and the “plots” are worthless as building land. The practice has been around for many years and, despite widespread coverage, continues to catch people out.
Land banking schemes target not just would-be self builders but anyone attracted by the prospect of easy investment returns. If someone is offering you a “building plot” at a fraction of what comparable plots sell for in the same area, treat it as a serious red flag.
Why haven’t they been stopped?Free downloadWant the complete picture?Download the official 2026 NaCSBA Consumer Guide — covering everything from finding a plot to getting on site. Free to registered users.Download free guide →Register free · No card required There is…
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