Its nationwide study of financial advisers found 63% believe access to UK residential property investment would help investors with pension planning.
But more than two out of five (42%) are concerned that the minimum investment required to invest in UK residential property, typically through buy-to-let, is a major barrier for most investors.
Sean Oldfield, chief executive officer, Castle Trust said: “Financial advisers recognise the value of UK residential property as a valuable diversifier in a portfolio, but are concerned about having to invest in bricks and mortar to do so.”
Around a third (31%) of IFAs themselves currently invest in UK residential property excluding their own homes.
Currently investors in Self-Invested Personal Pensions (SIPPs) cannot invest directly in UK residential property but can use Castle Trust’s HouSAs to invest in UK residential property from as little as £1,000. HouSAs are income and growth investment products linked to the Halifax House Price Index with returns that beat the Index, whether it rises or falls
Oldfield added: “House prices and household incomes are inherently linked over the long term making housing ideal for pension portfolios that need to keep pace with wage inflation.
“A fixed-term investment such as HouSAs can be used very effectively when you have a specific goal in mind, which is clearly the case for SIPP investors. They can include housing returns in their pension planning without having to consider downsizing their home when they stop work.”
Castle Trust’s HouSAs can be taken out for terms of three, five or ten years with investment from £1,000 to £1 million.
The Castle Trust Income HouSA tracks any rise or fall in the Halifax House Price Index and also pays an annual income of between 2% and 3%, depending on the term of the investment. The Castle Trust Growth HouSA offers a gain of between 1.25 times and 1.7 times any increase in the Halifax House Price Index or a loss of between 0.75 times and 0.3 times any decline.