Property investment company, Inside Track, has gone into administration.

The company recently released a statement that said: “Due to the continuing sustained difficulties arising from the credit crunch Inside Track has been placed into administration.”

The firm pledged to transform a generation of Britons into ‘property millionaires’.
It charged investors £2,500 to attend seminars at which they were encouraged to buy new build flats off-plan. However, before the company was placed into administration, a number of its customers had threatened legal action against it after losing thousands of pounds on failed investments.

An over-supply of newly built flats in some UK town and city centres led to falling resale values with rents not always meeting investors expectations. As a result some lenders withdrew completely or significantly lowered changed their criteria on loan to values (LTV) for mortgage financing for new-build apartments from 2005 onwards.

Back in 2005, Inside Track made profits of £12m, followed by £10.8m in 2006 and finally £6.9m last year.