What is a land banking scam?

A land banking scam sells plots using misleading claims about future development or value. The FCA says some plots have little chance of receiving planning permission. 1

Not every land banking scheme is fraudulent. Check development restrictions and planning claims independently rather than relying on the seller’s forecast. 1

By Secordit. Last checked: 7 November 2026.

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How does it work?

  1. A seller divides land into plots offered to investors. 1
  2. The pitch depends on future planning permission or development. 1
  3. Permission may never be sought or granted, leaving a difficult investment. 1

What the FCA describes

The FCA describes plots in areas of natural beauty or historical interest. Buyers are sold a development story despite restrictions on building. 1

What are the warning signs?

  • A caller pressures you to buy before independent checks. 1
  • The pitch treats future planning permission as certain. 1
  • The seller does not clearly explain development restrictions. 1

What to do now

  1. Ask the relevant local council about the land’s planning position. 1
  2. Seek independent financial or legal advice before proceeding. 1
  3. Report a suspected investment scam to the FCA. 1

UK reporting and support

  • If you paid a suspected scam, contact your bank using the number on your card. 23
  • Report fraud in England, Wales or Northern Ireland to Report Fraud. In Scotland, call Police Scotland on 101. 34
  • If someone is in danger, call 999. 4
  • Forward suspicious emails to [email protected]. Forward suspicious texts to 7726. 5

How can you protect yourself?

  • Check the planning position independently of the seller. 1
  • Do not assume every land sale has FCA protection. 1

Frequently asked questions

Is all land banking fraudulent?

No. The FCA says not every scheme is a scam, but development restrictions may be concealed. 1

Who can check planning claims?

The FCA recommends contacting the local council where the land is located. 1

Does the FCA regulate every sale of land?

No. The FCA distinguishes land sales from collective investment schemes, which can fall within its regulation. 1

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Sources

  1. FCA, Land banking investment scams. Accessed 7 November 2026 (Europe/London).
  2. Report Fraud, Ticket fraud. Accessed 7 November 2026 (Europe/London).
  3. Report Fraud, Police impersonation alert and reporting routes. Accessed 7 November 2026 (Europe/London).
  4. Police Scotland, How to report a crime. Accessed 7 November 2026 (Europe/London).
  5. GOV.UK, Avoid and report internet scams and phishing. Accessed 7 November 2026 (Europe/London).