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Castle Trust launches UK property market investment products

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Castle Trust, a new financial services company, has launched two new investment products designed to allow millions of people, many of whom do not own their own homes, to invest in the UK housing market.



The company will be offering an income and growth investment product linked to the Halifax House Price Index with returns that beat the index, whether it rises or falls.
 
The two new investment vehicles qualify for investment in ISAs, Junior ISAs and SIPPs.  Minimum investment is from GBP1,000 and there are no annual management charges. An initial fee of up to three per cent of the investment is payable, depending on what the client agrees with their financial adviser.
 
The Castle Trust Income HouSA can be taken out for terms of three, five or 10 years and the capital value will track any rise or fall in the Halifax House Price Index and it pays an annual income of between two per cent and three per cent, depending on the term of the investment.
 
The Castle Trust Growth HouSA can be taken out for the same terms and offers a gain of between 1.25 times and 1.7 times any increase on the Halifax House Price Index, or a loss of between 0.75 times and 0.3 times any decline.
 
Both HouSAs are available for investments of between GBP1,000 and GBP1m, and qualify for ISAs, Junior ISAs and for SIPPs.

Sean Oldfield (pictured), chief executive officer of Castle Trust, says: “The UK housing market has provided excellent risk-adjusted returns over the years. However, many have missed out on these returns because they have not been able to buy an investment property. Our HouSA allows many more people than ever before to invest in the UK housing market in a way that is easy to understand and accessible. It is also appealing to experienced investors who are looking to diversify their investment portfolio.”
 
Castle Trust research among IFAs reveals that 56 per cent expect the Halifax House Price Index to increase over the next three years, with only 20 per cent expecting it to fall. The number expecting it to rise increases to 68 per cent and 83 per cent when looking at five and 10 years.
 
When compared to stocks and shares investments, 62 per cent of IFAs believe that average house prices will be less volatile over the next three years. The corresponding figures for five years and 10 years are 67 per cent and 66 per cent respectively.

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