Plots of land which had originally been sold for thousands of pounds as part of so-called land banking schemes went under the hammer for £1.

The plots were sold at this month’s sale by Network Auctions.

The plots were being disposed of by receivers, and in one case executors.

The cheap price tag means that the sellers would have had to pay a fee to the auctioneers well in excess of the value achieved.

And while the buyers may have paid only £1, the costs of acquisition were far higher, with admin costs and the legal pack putting another £1,000 to £1,500 on top.

The plots were sold without reserve at the sale, held in London.

While three sold for £1, it is understood that the buyer of another paid £3,000 – which would still have been far less than the original purchaser paid.

A spokesperson for Network Auctions said that the £1 plots of land were proof that properties of all size, shape and value can be successfully sold at auction.

He added that it was made crystal clear to bidders that such purchases were highly speculative.

Land banking schemes were very often scams, when tiny plots of agricultural land are sold, with victims told that they will be able to sell them on to developers once planning permission is achieved. In reality, this is highly unlikely. Land banking scam companies have been wound up, directors banned and in some cases imprisoned.

Victims, who were often sold the plots under pressure, parted with thousands of pounds only to find they had bought something virtually worthless.

The plots were part of an exceptional sale in which auctioneer Guy Charrison sold 93% of lots – the best result of 2015.

A bungalow in Dorset sold at £585,000, some £205,000 over guide price, while a studio in Holloway, London N7, fetched £175,000, some £35,000 over guide.

A second December sale by Network Auctions, in Birmingham last week, achieved an 80% success rate, raising £960,000.

There are 11 auctions planned for 2016 by Network Auctions, six in London and five in Birmingham.