At what point does clever marketing become marketing that is totally misleading, and which makes the customer believe they are buying something they aren’t? I know that under English law we have caveat emptor i.e. buy beware, meaning that the customer should check that what they are getting is what they have been led to believe they are getting. But a recently produced video from GRE Portfolios Ltd, based in Oxfordshire really pushes things to the limit. Is this a scam, or is it up to customers to check their facts before they buy?
My house and office overlook fields, which are green belt and designated for agricultural use, formerly known as Daisy Lee Farm. Now, according to a video produced by GRE it’s suddenly become King’s Estate! And according to a plan on their website consists of 147 plots. These plots are for sale at £35,000 plus. This is agricultural land that isn’t even very good grazing quality and is worth no more than a few hundred pounds per plot. AND IT IS LAND WITH NO PLANNING PERMISSION OTHER THAN FOR AGRICULTURAL USE, AND WITH NO LIKELIHOOD OF THAT CHANGING, IN MY OPINION! The GRE video may show, that the field has road access, but neglects to mention that this is only authorised for agricultural vehicles and any form of track stops on entering the field.
Their video cleverly says ‘The rapidly expanding population continues to demand more houses and these could be built on King’s Estate’. Well in theory they could – If anyone could ever get planning permission for such a development! But that’s a bit like me saying ‘I could be captain of the England football team’! In theory I could, if I have a sex change, become a great footballer, knock a few years off my life and make Fabio Capello aware of my amazing talents. So, is this misleading and some sort of scam? In my opinion it is. I think people will buy plots under the misbelief that they are buying a building plot, when they are buying a bit of a scruffy field that they can only get to in an agricultural vehicle and currently can’t even lay a lawn on – the prescribed agricultural use is very limited!
So, is this very clever marketing? Oh yes! GRE stand to make millions out of selling bits of the English countryside, to people who should have the sense to carry out due diligence and realise what they are buying – but overseas investors probably won’t. If some of you are reading this, I suggest you do!
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2 responses so far ↓
1 garymitchell // Jun 3, 2010 at 4:55 am
What a video. Amazing what you can do with a hand held camera, a PC and a highly selective use of facts. This looks to me like a scam. But I take my hat off. They really have put some work into this.
Let’s hope that the overseas investors also do their homework. Sadly I fear many people, appalled at poor investment returns elsewhere, will consider this proposition and pay the asking price – at least £35,000 per plot.
Apart from the issue of planning which you articulated so well, the numbers do not stack up. Given that people will want to at least double their money on such an investment – does not stack up. What developer would, or could, pay nearly £100,000 for plots that look only large enough for houses of between £300-400k? This doesn’t leave much margin for the developer after infrastructure, construction and marketing costs have been taken into account. They might well go and look elsewhere for land with a better return – that is designated as development land – and with better access.
The ‘access’ to the land, much publicised in the video, is not good. Sure it has access onto a residential road, but to get to major routes you have to drive down a single track lane then right through the centre of Marlow – already heavily congested at peak times. It is highly unlikely that anyone in the council will ever vote to stick another 200+ cars down this tiny lane and into an existing congestion blackspot. An alternative ‘back route’ through quiet residential areas and past 2 primary schools is also extremely unlikely to be favoured.
GRE Portfolios Ltd look like they do other land business, but they must be aware that is is illegal to sell plots for subsequent joint resale to a developer without registering the scheme as a trust. A quick check on the FSA website shows that no such trust exists. Scam?
All of this is tough to check from abroad. So I fear that people may end up investing. It is a lesson to all of us considering what to do with our savings in these post recession times. If it looks too good to be true – it probably is.
2 garymitchell // Jun 29, 2010 at 6:32 am
It seems like Wycombe council agree this is a scam. They have put a sign at the gate to the land with the following message:
“WARNING – This Land is not considered for appropriate for residential development.”
“Anyone considering purchase a plot of land should be aware that the council does not anticipate having to release this land for development. You are advised to contact the council on …. before <> entering into any contract to purchase this land.”
The notice is on Wycombe District Council Headed Paper.
It is amazing though that nobody smelt a rat when a party offers way over the odds for a plot of land (i.e. 10x its agricultural value). Surely the land agent must have a responsibility here.
Meanwhile plots are still for sale to unsuspecting Saudis. ….
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