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 raises income multiples for higher-earning mortgage borrowers

Foundation Home Loans has increased the amount higher-earning residential borrowers can access under changes...

Wealthy Advisers Club funds £997 wellbeing retreat place to MIMHC

The Wealthy Advisers Club has donated a fully funded place at its inaugural Digital...

Access FS mortgage business rises 46.8% in record July

Access Financial Services recorded its strongest month for mortgage business in July, with activity...

LiveMore launches mortgage podcast for brokers and advisers

LiveMore has launched a podcast series covering developments in the specialist and later-life lending...

Mortgage myths deter would-be first-time buyers

Misconceptions about mortgage eligibility may be prompting aspiring first-time buyers to abandon their plans...

Latest publication

Other news

Let’s not get bogged down in the macro, let’s focus on the ones and twos

In challenging times such as this, it often feels like the first instinct for...

Foundation raises income multiples for higher-earning mortgage borrowers

Foundation Home Loans has increased the amount higher-earning residential borrowers can access under changes...

Wealthy Advisers Club funds £997 wellbeing retreat place to MIMHC

The Wealthy Advisers Club has donated a fully funded place at its inaugural Digital...