PropertyMar 20 2014

Client interest in property as investment hots up

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The chief executive of Castle Trust said the firm had seen record take-up for its Housa fund range, which tracks growth in the Halifax House Price Index.

He said that, when the residential investment firm surveyed 100 advisers, they said 42 per cent of clients were enquiring about property on the back of booming house prices in areas like London and the south east.

Advisers themselves think house prices will increase by around 21 per cent in the next 10 years, adding £37,773 to the value of an average home.

The research confirmed March statistics from the Investment Management Association showing property had become one of the best-selling sectors with net retail sales of £232m.

Property was the third best-selling sector in January, the same position it held in December 2013, with sales at their highest level since March 2010.

Tom Dean, chartered financial planner for London-based Plutus Wealth Management, said: “The investment industry has long tried to capture growth in house prices but no one product has done this exceptionally well due to tricky nature of asset class.

Liquidity can be a problem, and investors can often forget about both the risks and transaction costs involved.”