Newcastle has developed a three-year building society account in which return is linked to the performance of the Halifax house price index.
This short-term property bond offers a return based on 75% of any rises in the Halifax house price index over the next three years and has a full capital guarantee.
Research from the society's branches showed a demand for shorter term products. Capital is guaranteed if the price index should fall as investors will still receive the their original investment back plus any early-bird interest.
There is a minimum investment of £500 in the bond up to a maximum of £1m.
Robert Hollinshead, chief executive at Newcastle, says: “Property investment can be a long-term and rather labour-intensive form of investment.
“And whilst there has been strong growth in recent years, not everybody wants to invest directly in a property.
“This guaranteed property bond offers an alternative by providing a straightforward building society account in which the returns are linked to any growth in the Halifax house price index and whereby the capital investment will be safe whatever happens to house prices.”