Shortage of space in cemeteries...

Photo: Andrew Fox/Corbis, The Guardian

Try not to die if you live in the London boroughs of Tower Hamlets or Hackney – the councils don't have anywhere to put you. They are among a growing number of local authorities across Britain that have run out of burial space, or are close to it.

Some estimates suggest that by 2019 all 130 cemeteries in London and its outer areas will have run out of capacity. And it's not just the capital that is suffering. Last month the popular retirement area of Poole in Dorset said its two remaining cemeteries would run out of space within a year, while in Wales church leaders have warned of a "burial crisis", with a quarter of grounds already full and 43% with fewer than 20 spaces left.

The shortage – and the fact that councils are strapped for cash – is pushing up burial fees. Last month Glasgow increased the cost of a new plot from £658 to £1,076, and from £540 to £808 for burial in an existing family plot. Data from Cipfa, the organisation for accountants in the public sector, shows that between 2008 and 2009 the average fee for interments in the UK rose from £458 to £493, up 8.7%. The fee for burial outside your home borough rose even more, to £903 from £833.

Private operators are moving in to fill the gap – and this week saw the launch of "CemeteryInvest.com", which is offering plots for £875 at a new cemetery on the edge of Birmingham.

However, it is not targeting the bereaved or people trying to reserve a space for themselves – it is aimed at private investors, who, in effect, lease the land then sell later at a profit. It claims investors could make 60% in as little as two years, and can even put the investment into their pension.

"The concept is very simple. We allow investors to forward-purchase individual plots at a discounted rate. They are then managed by the cemetery and offered back to the public at their usual market value upon completion of the landscaping in 2012, providing you with the returns," says promoter Alex Ogden. He claims nearby local cemeteries are selling space for between £1,480 and £1,600, so buying at £875 today will give investors almost guaranteed returns.

But there are risks. This is not a business regulated by the Financial Services Authority, so it is unsupervised, and there is no access to compensation should anything go wrong.

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