Newspaper article The Evening Standard (London, England)

Revolutionary Home for Investors

Newspaper article The Evening Standard (London, England)

Revolutionary Home for Investors

Article excerpt

Byline: Anthony Hilton CITY COMMENT

BRITAIN needs more than 200,000 new homes a year and is building well below 100,000. Yet housebuilders are struggling to find buyers for even this reduced number because people can't get mortgages for more than 80% of the value.

Nor is there any hope of an immediate improvement in the availability of funds. Even dedicated property lenders like Nationwide find it very hard to make money on home loans at the current low levels of interest rates.

The other home truth about UK housing is that it has proved to be easily the best investment for most individuals over the past 50 years, and will probably continue to be in spite of the current soggy state of the market. Not only have returns far outstripped those from stocks and shares but the profit on selling comes free from capital gains tax provided it is the person's main residence. No other home for savings comes close.

Seeing this, there have been attempts over the years to create investment funds that would reflect the increase in house prices, but none has ever really managed to get it right. No one has yet created a property investment vehicle that makes buying and selling residential property units as easy and buying and selling shares in a mutual fund. Until now.

This is where yesterday's announcement of the launch of Castle Trust comes in. Behind its low-key launch is probably the most far-reaching innovation in the housing market for a generation.

It promises new ways to buy houses and to invest in property. Between them they have the potential to revolutionise the market.

Though the press release was short on detail the concept is simple. On the mortgage side, if people don't have money for a big enough deposit Castle will help them. Thus if a buyer has a 10% deposit but can only get an 80% mortgage, then Castle will make good the cash shortfall. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.