'Buyer beware': Warning over scam building plots after land buyers lose thousands of pounds

Self builders are being warned over "scam" building plots for sale in Bicester, Oxfordshire.

Buyers have reportedly already fallen victim, losing thousands of pounds – with some claimed to have been forced into bankruptcy – after discovering land marketed as 'building plots' does not actually have planning permission and therefore isn't worth as much as they paid.

A number of parcels of land advertised in West Bicester as prospective sites for future homes, form 'amenity land' and have repeatedly been denied planning permission.

Scam plots for sale on Facebook and through local estate agent

Stephen Rand, Chairman of the Derwent Green Residents' Group, revealed that land sales in his community in West Bicester have led to buyers losing over £300,000, with some even going bankrupt.

He claims that parcels of land, initially bought cheaply, are now being sold as potential 'building plots' at inflated prices, without the necessary planning permissions. However, some land is being advertised with plans of what could potentially built. 

Rand has been monitoring house sales in the area and he explained: “[An estate agent] in Bicester is currently marketing a plot that the seller bought for £10,000, produced plans and drawings for a house on the plot, and is now asking for £100,000.

“Another seller is marketing a plot himself on Facebook Marketplace as if he is selling the house shown in the drawing.”

He added: "We know of four buyers who have paid around £70,000 for a plot, failed to get planning permission, and then their company has gone bust. So it's the four buyers combined that have lost £300,000."

The situation is complicated by the fact that the original estate developer went bankrupt before transferring ownership to the council. The developer's assets, including public green spaces, were sold off on the open market after passing through a now-defunct Portuguese bank.

Mr Rand warns: "Anyone who’s buying should get a piece of paper which says everyone who’s tried to build on these has not got planning permission.

"The auction houses or estate agents won’t do that. The legal packs are always missing that information. But they are rarely interested in doing something that would probably prevent the sale and therefore lose them their fee.

“We keep hoping that they might decide not to make money as the agents of what is, in our view, a blatant scam.”

The local estate agent who advertised the plots as building plots has since taken down the listings on their site.

Why has planning been rejected for the plots?

Cherwell District Council says it has refused planning permission for plots in this area as they are working to protect public amenity land by rejecting applications threatening small green plots valued by residents.

Many plots sold are Local Green Spaces (LGS), which were introduced in the 2012 National Policy Planning Framework (NPPF). These provide green spaces that are highly valued by local communities and have the same level of protection as Green Belt land.

Other projects were blocked because the land included trees with Tree Preservation Orders.

Bicester West councillor Les Sibley has said the council are submitting a new Cherwell Local Plan to prevent these green spaces from being destroyed: "It is important to get our local green spaces designated as it will offer the same protection in planning law as a village green.

However, he refused to comment on the false advertisement of the land but did say: "The maintenance of these open spaces have been a very contentious issue between council and private landowners over many years, and needs to be addressed."

A spokesperson for Cherwell District Council said: “The council can only judge each planning application on its own merits. If people buy such plots of land then it is at their own risk. We advise anyone thinking of purchasing a plot of land to look at the planning history on our website.

"If plots are being marketed as coming with the benefit of planning permission when they don’t have it, that is misleading and people may wish to seek advice from the Citizens Advice consumer service.”

Top ten tips to avoid plot scams

In order to avoid similar situations Michael Holmes, Vice Chair of the National Custom and Self Build Association (NaCSBA) and Homebuilding & Renovating's self build expert has provided his advice for avoiding plot scams:

• Research the seller thoroughly: Verify the identity and credentials of the seller, checking for any legal issues or complaints.
• Verify ownership: Confirm the seller's ownership of the land through the Land Registry and check for any restrictions on development.
• Check planning permission: Be cautious of land advertised as having development potential without planning permission; verify with local authorities if you feel you could be buying land without planning consent.
• Seek professional advice: Consult experts like planning consultants or solicitors to assess the feasibility and risks of the land.
• Avoid pressure tactics: Be wary of sellers pushing for a quick decision or making unsolicited offers.
• Investigate the local area: Research local development plans and environmental restrictions that may affect the land.
• Scepticism of guaranteed returns: Be cautious of promises of high returns or guaranteed planning permission.
• Beware of marketing hype: Verify claims made in promotional materials with independent sources.
• Document everything: Ensure all agreements are in writing and reviewed by a solicitor before committing.
• Caution with overseas investments: Be extra cautious with international plots, as foreign laws may be less transparent.

He adds: "If a deal seems too good to be true, it probably is. If you're at all unsure about any aspect of the sale, follow your instinct and walk away."

Michael Holmes

Michael is a leading expert in the property industry, serving as Director of Content for Homebuilding & Renovating and Vice Chair at the National Custom and Self Build Association (NaCSBA). He has a rich background in property, with experience in TV presentations, authoring 'Renovating for Profit', and managing an architectural and interior design practice. Michael has overseen 30 building projects, including self builds and the renovation of a Grade-II listed farmhouse.