View more on these topics

Julian Gibbs

NDF, in conjunction with Abbey National Treasury Services, has produced another innovative plan with 100 per cent capital protection called the house price secure growth plan. This is a five-and-a-half-year investment linked to the Halifax house prices index and, unlike other investments of this type, does not have any upper growth limit.

My research has produced house price forecasts averaging around 7 to 8 per cent a year over the next five years. JP Morgan UK economist Danny Gabay predicts much higher rises. He expects the price increase to be around 20 per cent over the next year.

Gabay says the London property market has acted as a brake on the rapid rise in house prices across the UK as it has barely increased over the last year due to City redundancies and the September 11 factor. However, he expects London property prices to increase rapidly and this increase will spread throughout the UK.

In the North, for example, property remains fairly affordable, with prices only around 30 per cent higher than during the 1980s&#39 boom, despite incomes having risen by 74 per cent.

My guess is that the Halifax index will rise by around 8 to 10 per cent a year over the five-and-a-half-year timescale of the NDF plan.

This investment is much safer than any other growth investment on the market and, because the capital is always returned in full at the end of five-and-a-half years, whatever happens to house prices, is totally safe. For those who already have a house or who cannot afford to buy one, investing in this plan through an Isa or Pep transfer, or directly, with excellent tax advantages, is an ideal answer. Even children can invest and use their capital gains tax allowance.

Recommended

Personal loans for Mortgage Intelligence

Broker club Mortgage Intelligence is moving into personal loans through partnerships with Halifax and the Royal Bank of Scotland. MI members will be able to offer clients unsecured loans as well as mortgages. Halifax will pay brokers a procuration fee of 1 per cent of the loan amount while the Royal Bank of Scotland will […]

State Street Global Advisors – StreetTRACKS MSCI Europe Industrials ETF

Wednesday, June 19, 2002Type: Exchange traded fundAim: Growth by tracking the MSCI industrial Europe indexMinimum investment: Subject to negotiation with stockbroker Maximum investment: NonePlace of registration: UKIsa link: YesPep transfers: YesCharges: Annual 0.5%Commission: NoneContact: www.ssga.com/uk

Common Denominators

This week, I would like to continue my look at the consultation on offshore funds. A close examination of the document and some of the possibilities for new rules reveals the perhaps inevitable likelihood of an increase in the amount of information that would need to be provided to the UK authorities in connection with […]

Talkback

“Yes. ABN has sufficient financial strength to recruit new managers and, in merging with Artemis, it has a ready-made range of funds and good managers available to it.” Simon Clements, S&G Financial Management “Yes. I have every confidence in Artemis&#39s UK fund managers.” Simon White, White Financial Management “Yes, at the moment, as £1.5bn funds […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment