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

Landlord sales slow following Renters’ Right Act

The share of homes listed for sale that were previously rented dropped to 9.2%...

Knowledge Bank teams up with Brilliant Solutions for specialist lending cases

Knowledge Bank has formed a partnership with specialist mortgage packager Brilliant Solutions as demand...

FCA urges firms to strengthen product design under Consumer Duty

The Financial Conduct Authority has highlighted examples of improved product governance under the Consumer...

Validate appoints Louise Shute as managing director

Valuation specialist Validate has appointed Louise Shute as managing director as it continues to...

Swap rates fall but funding risks remain, warns Moneyfacts

In a week that saw more than 20 lenders reduce their fixed mortgage rates,...

Latest publication

Other news

Landlord sales slow following Renters’ Right Act

The share of homes listed for sale that were previously rented dropped to 9.2%...

Uncertainty means greater need for client conversations

Last week showed just how quickly events on the other side of the world...

Knowledge Bank teams up with Brilliant Solutions for specialist lending cases

Knowledge Bank has formed a partnership with specialist mortgage packager Brilliant Solutions as demand...