The UK’s Land Registry is warning people not to buy through land banking schemes as it is revealed that victim’s losses have now reached £200m.

It has updated its guide on land banking to warn the public about the risks involved in buying land forming part of a land banking scheme.

These are schemes where it is claimed that the plots of land have good investment value in the expectation of future development but where there is little or no chance of land ever being developed.

The Financial Services Authority (FSA) recently estimated that land banking schemes have cost UK investors as much as £200m.

The updated guide now includes contact details for organisations that can recommend independent advisers to members of the public considering investing in a land banking scheme. It also explains the role of regulatory bodies relating to land banking as well as how to report instances of such activity.

“We know that many investors, living both in this country and abroad, hand over thousands of pounds for land that has little or no chance of being developed. Some companies offer UK land plots from the Far East where the local authorities do not regulate such activities, or are not aware of the high risk nature of the investment”, said Jane Allen from Land Registry’s Corporate Legal Services.