IFAs expect continued house price rises

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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.”

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