Green Belt – sales of small plots
http://www.ukbriefingpapers.co.uk/BriefingPaper/SN00717
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The Government share the strong disapproval of plot sale enterprises that exploit people’s eagerness to build homes in open countryside, often at the expense of their limited knowledge of planning laws and policies.

The Government recognise the harm and adverse consequences of the subdivision of land in the countryside. Some of those consequences arise from open land being divided up with pegs, stakes, or fences, creating an eyesore that detracts from the appearance of the countryside. When plots are sold and are no longer in agricultural use, it can lead to neglect. That is especially difficult to put right if plot owners cannot be traced.

The mis-selling of land can be tackled in a variety of ways. Depending on the nature of the deceit, instances of mis-selling might be dealt with by the police, the Office of Fair Trading, local authority trading standards departments or the Department of Trade and Industry. The latter has powers under the Companies Act 1985, and can investigate companies if there is reason to suspect fraud, dishonesty or any other objectionable conduct, and can, in the public interest, take proceedings to wind up a company and/or disqualify its directors.

The planning system is not designed to supervise land ownership or to protect the unaware from ill-advised purchases. A primary concern of the planning system is the impact of development on amenity. It would be impractical to place an added burden on local government in respect of the oversight of the sale of rural land. However, planning has an important part to play in limiting harm to rural land…

We also plan to allow local authorities to bring article 4 directions into force more quickly by serving the relevant notice on the land by site display in cases where one or more owners cannot be identified or located, or where the numbers of owners or occupiers makes it impractical to serve a notice on every individual.

The planning system is concerned with land use and the impacts of development; it does not deal with how land is sold, the ethics of the vendor or even who owns the land and how they might behave. If there is no development involved, there are no controls to invoke.

In conclusion, we are committed to the protection of the countryside against inappropriate development and, in particular, to the protection of green belt.

http://www.thisismoney.co.uk/money/experts/article-2126493/TONY-HETHERINGTON-Land-banking-company-boss-charged-15-000-blades-grass-scams.html

Two interesting points from this.

1: The lawyers were fined and warned for their involvement in the mis selling of land

The lawyer has acted for a number of suspect land banking companies.
In 2005 the Solicitors Disciplinary Tribunal fined the lawyer £10,000 for offences involving his handling of clients’ money. And in April last year his practising certificate was renewed but subject to conditions. He must deliver regular accountant’s reports and is barred from supervising or training any would-be solicitors.

2: Almost the standard script for UK land banking sales

“You have been swindled. You paid almost £15,000 for a plot of land at Chesham in Buckinghamshire after being told that the land banking company was ‘a major UK based land investment company’ and that it was ‘managed by highly experienced professionals using disciplined processes and rigorous research’ to assess sites for likely planning consent.”

Not one of the land firms named in the article is still in business. All that is left is a growing list of people who realise they are victims of an investment scam that has left them holding almost worthless blades of grass

I decided to pull out. However, do you have any suggestion that I can get back the deposit ( or at least some refund) ? I am from HK. I called and talked to UK – FSA, but they said they can’t help as Jardine Smith is of Singapore company but not UK company…. (so sad)…

Hope to hear from you soon. I have shared this bad experience with my friends already…