High court shuts landbanking firm
It is probably every investors worst nightmare: you pay thousands of pounds for a plot of land, which will get planning permission, only to find that the land did not get the permission and is worthless.
UK Land Investments Group bought up large chunks of land and divided them into small plots, which it sold on to investors.
Around 4,500 investors paid the firm £69m for 5,000 plots, which it claimed it could get planning permission for. These could then be sold on to a developer at a profit.
But none of the land was ever granted planning permission, leaving the investors with plots that were virtually worthless.
The Financial Services Authority (FSA) asked the high court to wind up the scheme and has been granted an interim freezing order to prevent the firm from selling more land and to protect its assets for creditors, including its investors.