Newcastle has developed a three-year building society account where the return is linked to the performance of the Halifax house price index.
This short-term property bond, available from April 7 2004, offers a return based on 75% of any rises in the Halifax house price index over the next three years with a full capitalguarantee.
Research from the society's branches has shown there is a clear demand for shorter term products. Capital is guaranteed if the Halifax house price index should fall, as investors will still receive the amount of their original investment back, plus any early-bird interest.
The original investment is guaranteed to be returned even if the Halifax house price index should fall and there is a minimum investment of £500 and maximum £1m.
Robert Hollinshead, chief executive at Newcastle, says: “Property investment can be a long-term and work intensive form of investment.
“While there has been strong growth in recent years, not everyone wants to invest directly in a property.
“The guaranteed property bond offers an alternative by providing a straightforward building society account where the returns are linked to any growth in the Halifax house price index, and where the capital investment will be safe whatever happens to house prices.”