Appetite for residential investment on the rise, says Castle Trust

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 getting a deposit together (49%), worries about tenants or lack of tenants (51%) and hassle (41%). 

Sean Oldfield, 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."