Savers who think house prices will rise in coming years could soon be able to invest in an index-linked Isa that tracks property values.
Castle Trust, which has applied for a Financial Services Authority trading licence, is set to launch something called a HouSA that pays investors returns based on house prices. It will be the first time ordinary investors can tap into the UK's biggest asset class - residential property is worth an estimated £4trillion – without physical buying homes.
Castle Trust's innovative product will track changes in the Halifax House Price Index and savers will be able to invest in as part of their £10,680 (£11,280 from April 2012) stocks and shares Isa allowance.
A three-year term or a five-year term will be available, but withdrawals of cash in the meantime will not be allowed.