THE controversial St Albans firm Property Spy, which sells Green Belt land as a speculative investment, has been forced into a shake-up by official regulators.

After a probe by the Financial Services Authority (FSA), the company has decided to stop marketing plots of rural land to the public, although its directors have set up a new enterprise to continue the practice.

In recent years Property Spy, which is based in Upper Marlborough Road, has angered countryside campaigners by dividing parcels of previously agricultural land into small plots, which are sold on as investments.

Investors hope for huge long-term profits, as the land's value will rocket if the pressure of housing shortages ever forces a change to existing planning rules which protect it from development.

Meanwhile the land, which includes areas off the St Albans to Harpenden road, off the Lower Luton Road, north of Wheathampstead and near Chiswell Green, is untended and turns into scrub.

Local critics say the untended plots spoil the landscape and fear the activities of Property Spy increase the chance they will indeed eventually be built on.

Property Spy managing director Craig Tucker said: "Property Spy has decided not to continue selling plots of land, following a review by the FSA. That review is still under way.

"We are seeking guidance from the FSA as to what conditions and in what form we should market our plots."

He said a new company Insight land Investments, owned by the same directors and based in the same building, would market future plots, operating within the FSA guidelines.

Property Spy will continue as a more conventional property marketing company, producing a magazine.

The FSA would not comment on its review of Property Spy, but a spokesman said such enterprises were routinely investigated to discover whether they required authorisation as "collective investment" schemes.

Luton man Ainul Islam, who bought two plots on the St Albans to Harpenden Road from Property Spy three years ago, said: "They should have written to us formally setting out what was happening."