Landbanking is a popular way for developers to buy land in readiness for development. Supermarket chains, house builders and other developers buy up plots for future development regularly. However, landbanking becomes a scam when the sellers tell lies about the development potential of a plot of land, knowing the promises they make will never be fulfilled. Typically, a field is bought and divided into house size plots. Each plot is sold at a hyped price and some come with annual management charges that lock investors into expensive outlays for many years.