Property investment scams
"Guaranteed" returns on hotel rooms, student pods, care home rooms, storage units, parking spaces or land plots are classic warning signs. Many are unregulated schemes; some are frauds.
The FCA warns that schemes selling hotel rooms, holiday lodges, student pods, care home rooms, storage units or parking spaces often promise guaranteed rent and buy-backs, but many are unregulated collective investment schemes, and some are scams. If the operator fails, the guarantee is worthless and the unit may be unsellable.
Land banking sells plots of farmland on the promise of future planning permission that usually never comes.
Property 'deal sourcers' who find deals for a fee must, by law, belong to a property redress scheme and be registered with HMRC for anti-money-laundering supervision. Be wary of big upfront fees, inflated valuations and rents that don't match the evidence.
Check any firm on the FCA register and ScamSmart before you invest, and run the numbers yourself with Plotlumen's calculators and sold-price evidence.
What to check
- Is any return 'guaranteed'?
- Can you check the value and rent yourself from sold prices and real lettings?
- Is the firm on the FCA register, or a redress scheme for deal sourcers?
- Are you being rushed or offered a discount to decide today?
Who can help
The FCA's ScamSmart service; a regulated financial adviser; a solicitor before signing anything.
Official sources
Checked 5 November 2026. General information for England and Wales, not legal advice.