News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the April / May 2003 issue RPI news archive

DTI acts against property investment companies - April / May 2003

Winding up procedures have been started by the Department of Trade and Industry 'in the public interest' against three companies marketing buy to let investments.

Napeer Holdings Limited, PPP Limited, and Practical Portfolio Limited were suggesting returns of 15 per cent from an outlay of about £24,000. For this the companies, which operated in the North East, offered to source and renovate properties, and then to find tenants.

The DTI move followed a Companies Act investiga tion in which Northumbria police's economic crimes unit was said to have been involved. This followed complaints from investors that the company had failed to live up to its promises.

No charges have been brought although continuing investigations into alleged misappropriation of investors' funds are expected to take at least another two years. Meanwhile, using powers under the Proceeds of Crime Act, police seized cash and other assets found at the homes of the company's directors.
 

other artilces from the April / May 2003 issue

• Competent regulation
• Private landlords set for 'selective licensing'
• Local crackdowns on HMO landlords
• Property prospects better in the north
• Landlords shop for best mortgages
• DTI acts against property investment companies
• Letting returns put at over 20 per cent
• Average house tops £145,00
• London landlord given life sentence
• Government admits to wider anti-social problems
• In brief