Advisers bullish on property future

Taking its results from 104 financial advisers, it was estimated that house prices will increase by 21% over the next 10 years which would add £37,773 to the value of a typical home, writes Ryan Bembridge.

Castle Trust found:

• 86.4% expect house prices to increase during the next 3 years

• Between now and 2019, 86% of advisers expect house prices to rise – one in 20 is anticipating a dramatic increase

• When looking at the next 10 years, only 6% expect prices to fall and one in 14 think they will rise by over 50%.

Taking advantage of this rise in property prices, Castle Trust has found that 42% of IFAs are seeing a growing interest from clients in residential property as an asset class.

Castle Trust offers investment products that track or beat the Halifax House Price Index. UK residential property is one of the most stable asset classes, according to the company, and its analysis reveals that it has historically delivered annual returns of about 6% per annum over the past 30 years.

The company’s Protected Housa investment product which both protects the capital invested and tracks the Halifax House Price Index has delivered capital growth of 3.1% in its first month alone.

Sean Oldfield, chief executive of Castle Trust, said: “It is clear that confidence in the entire UK housing market is finally taking hold and is no longer just confined to London & the South East.

“This is starkly apparent from our own results - we have witnessed record flows into our Housa products, presumably because their returns are tightly pegged to the Halifax House Price Index.

“Our Housa products provide a simple alternative to buy-to-let which has never before existed and which opens up the chance for more people to invest in residential property who previously weren’t able to do so.”