posted 17th December 2025
Property investment fraud remains one of the most financially damaging forms of rogue trading in the UK. Meridian Legal Services has observed a consistent pattern involving developers who solicit large deposits for off-plan developments, only for projects to stall, funds to vanish, and investors to be left without recourse.
Typically, investors are approached with what appears to be a low-risk opportunity: residential developments in regeneration areas, guaranteed rental yields, or “asset-backed” security.
Marketing materials are professionally produced, company registration details appear legitimate, and deposits are described as protected or ringfenced. Initial payments often range from £25,000 to £150,000 per unit.
Problems emerge gradually. Construction timelines slip, planning delays are cited, and communication becomes sporadic. Requests for refunds are met with vague explanations or outright silence. Eventually, investors discover the development company has entered liquidation or been dissolved.
What many victims fail to realise is that insolvency does not necessarily mean the end of recovery options. In numerous cases, funds were misapplied long before insolvency proceedings began. Deposits allegedly held for development are instead diverted to unrelated projects, marketing costs, or director remuneration. This can amount to misrepresentation, breach of trust, or unlawful trading.
Another common feature is phoenixing, where directors dissolve one entity while continuing operations through another. Where evidence demonstrates continuity of control, assets, or intent, courts may allow claims against directors personally.
Timing is critical. Investors who delay seeking legal advice often lose the opportunity to secure interim remedies such as freezing injunctions or disclosure orders. Once assets are transferred offshore or dissipated, recovery becomes significantly harder.
Meridian Legal Services specialises in assessing whether property investment losses are legally recoverable. This includes analysing promotional materials, tracing fund movements, and identifying viable defendants beyond the failed development company itself.
If you have lost £25,000 or more in a property investment involving misleading assurances, delayed refunds, or unexplained insolvency, specialist legal advice may determine whether recovery is still possible.
If you have a story you would like to share with us or need expert help recovering your money, let us know.
