Released on = July 26, 2006, 3:59 am

Press Release Author = UKLI

Industry = Real Estate

Press Release Summary = UKLI has teamed up with MPs who share their growing concern
over the practice of a number of companies in the Land Banking Industry who are
deliberately misleading investors on the potential returns they can make from
investing in speculative land investments.

Press Release Body = UKLI has teamed up with MPs who share their growing concern
over the practice of a number of companies in the Land Banking Industry who are
deliberately misleading investors on the potential returns they can make from
investing in speculative land investments.

In a Westminster debate held on 12th July, Greg Mulholland, MP for Leeds North West,
cited an example in his own constituency.

'One company selling land in my own constituency explicitly claimed to investors, in
private, that the local council would award permission for development. This claim
is clearly outrageous given the advice that we have had from the Council and the
Government; it is incorrect and misleading. It is not an isolated case. I have
been inundated with correspondence from people up and down the country.'

Mulholland continued 'There is a strong coalition working on this matter. I am
working with the CPRE and with several MPs from all parts of the house. I have also
been contacted by reputable land investment companies, including possibly the
largest such company in the United Kingdom, UK Land Investments Group.

UKLI limited are increasingly concerned because they invest large sums of money to
ensure that land is bought and sold legally and without misrepresentation - they
wish to see fly-by-night organisations brought to book for their scandalous
practices and the damage they do to this industry.

I am delighted to be working with such organisations and we have developed some
proposals to set-up a self regulating body to monitor the actions of land investment
firms to ensure that they are not engaging in the kind of practices that I have
mentioned.'

Brian Smith, Director of Strategic Land Buying at UKLI Limited commented; 'We are
absolutely delighted that we will be working closely with Mr Mulholland on his
campaign to expose poor business practices and miss-selling and fully support the
setting up of an Independent Regulatory Organisation to ensure that other companies
meet the exacting standards that we work to.

We have been increasingly concerned by the damage disreputable companies are doing
to our industry.

It has come to our attention that there are businesses that are advertising plots of
land for less than £10,000 with promises or guarantees of obtaining planning
permission within a couple of years - this offer sounds too good to be true because
frankly, it is.

Clearly plots of land being offered for £10,000 or less with a promise of planning
consent in a couple of years is a nonsense - they offer land at this price because
typically it is cheap land without any real planning prospects.'

As a responsible business we are very concerned at the behaviour of these so called
businesses because they are clearly intent on misleading customers to part with
their hard-earned cash and we would urge anyone who is interested in land to carry
out the following checks before the decide on whether to invest:

1. Check with the Land Registry that the land is actually owned by the company you
are buying from
2. Ask to meet their land buying and planning team - and ask them how they can
promise planning permission and insist that they show you the research they have
already undertaken to back-up their claims
3. Ask to see their audited accounts to make sure they have enough funds to pay for
planning - UKLI Limited reserve £500,000 per site to promote it for potential
re-zoning or allocation for residential development and you should be comfortable
that the company you are dealing with has sufficient reserves to meet their
obligations to you
4. Ask to be taken to the site and ask their agent to talk you through why it is
such a good site - if it is not next to current residential development then be very
suspicious

Smith concluded, 'we know from my own team of expert land buyers and planners that
buying land can be an excellent, medium term investment with returns of up to 400%
on land that is re-zoned for residential development - but we urge anyone looking at
other businesses and considering land investment opportunities to be wary of any
promises regarding planning permission.'

For more information on Land Banking and issues surrounding the industry and the
need to build more housing please contact Dan Kader from UK Land Investments on 020
7492 4040, or Greg Mulholland MP at the address below.

Greg Mulholland MP
House of Commons
London
SW1A 0AA
020 7219 3833



Web Site = http://www.uklandinvestments.com

Contact Details = Berkeley Square House
Berkeley Square
London, W1J 6BD