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Castle Trust Research Shows UK Commercial Property Loss Variable

By Phil Butler | February 7, 2013

Research released late last month form Castle Trust tell of UK commercial property fund investors having lost an average of 11.4% in the last half decade.

Castle Trust UK investments

Castle Trust, a innovative new type of financial institution, offers creative investment opportunities in the UK housing market. Their recent research analyzed some 42 funds in the IMA Property Sector, and showed only a smidgen of profit for those vested over the last 5 years. The best of returns being at +1.0%, and losses shown at even as low as -26.6%, the firm's data seems to point to a need for their alternative to conventional property funds. Sean Oldfield, chief executive officer, Castle Trust, offered this comment via the company's news:

“Residential property has historically been a notoriously inaccessible asset class for investors, principally only for buy-to-let investors. Property investment for most people means investing in commercial property funds although many investors think they are gaining exposure to residential property through them.

Property funds are not as liquid as they may seem.  The reality is that investors try to sell when prices turn down, at which point they are locked in and then get the prices that can be achieved for the properties when allowed out.  The idea that an open-ended fund can make illiquid assets liquid is misleading, as anyone who tried to sell a holding in a commercial property fund in 2008 will be aware.”

As the alternative, Castle Trust touts their so called HouSA, which reportedly tracks the Halifax House Price Index and pays an annual income of 2% to 3%, depending on the term. Castle Trust Growth's HouSA offers a multiple of between 1.25 times and 1.7 times any increase on the Halifax House Price Index. The instruments also offer limits of loss of between 0.75 times and 0.3 times any decline. 'The publicized benefits are as follows:

  • Returns are better than the Halifax House Price Index
  • Some protection against a fall in the Halifax House Price Index
  • Tax free investment options
  • You can invest from as little as £1,000
  • An alternative to a buy-to-let investment without the hassle or ongoing costs
  • Open up the housing market for investors without the need to buy a property
  • Qualify for inclusion in ISAs, Junior ISAs and SIPPs

For those unfamiliar with Castle Trust, the recently launched firm is possessed of an impressive board of directors, which include; Sir Callum McCarthy, and Lord Deben. The trust is also guaranteed by the Financial Services Compensation Scheme, which insures individual investors for losses as large as £50,000.

For more information on Castle Trust, this news, or other investment choices of the firm, readers may follow the prescribed links, or simply call: 0207 282 1031/1096

You may also want to review the firm's HouSA brochure here (PDF).


Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
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