IFAs expect continued house price rises

Published on

Sean Oldfield, CEO of Castle Trust

New research from Castle Trust reveals that 86.4% of IFAs expect UK house prices to increase during the next three years and 40.4% would increase their personal exposure to the asset class if it was easier to do so in a tax-efficient manner.

This increased appetite is mirrored in the demands of their clients, with 42% more IFA clients showing an interest in residential property as an investment.

The new survey with 104 financial advisers reveals that between now and 2019, 86% of advisers expect house prices to rise – with one in 20 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%. By 2024, financial advisers on average think that house prices will increase by around 21%, which would add £37,773 to the value of a typical home.

The research reveals that over 40% of IFA clients want to increase their investment in residential property. According to the survey, the most common barriers to investing in a buy-to-let property are:
1. getting a deposit together (49%),
2. worries about tenants or lack of tenants (51%) and
3. hassle (41%).

Sean Oldfield (pictured), 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 – which opens up the chance for more people to invest in residential property who previously weren’t able to do so.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Foundation backs complex Oxfordshire holiday-let purchase

Foundation has provided a £153,700 mortgage for an experienced landlord buying a newly developed...

Openwork adds Perenna and West One to mortgage panel

The Openwork Partnership has added Perenna and West One to its mortgage lending panel,...

Bank of England holds rate at 3.75% as energy risks cloud outlook

The Bank of England has kept Bank Rate at 3.75% amid concern that higher...

TML and Bluestone cut selected residential mortgage rates

The Mortgage Lender and Bluestone Mortgages have reduced selected residential mortgage rates by up...

StrideUp raises property finance limit and expands HMO criteria

StrideUp has increased the maximum financing available through its buy-to-let purchase plan to £2.5...

Latest publication

Other news

Foundation backs complex Oxfordshire holiday-let purchase

Foundation has provided a £153,700 mortgage for an experienced landlord buying a newly developed...

Openwork adds Perenna and West One to mortgage panel

The Openwork Partnership has added Perenna and West One to its mortgage lending panel,...

Bank of England holds rate at 3.75% as energy risks cloud outlook

The Bank of England has kept Bank Rate at 3.75% amid concern that higher...