Gambling on house prices

Figures from RBS indicate that the futures market are pricing in a drop of 10% in house prices next year.

RBS is preparing to launch a series of house price derivatives in 2011 according to the FT allowing landlords and other investors to bet on the medium term direction of house prices.

The products launching next year will have a minimum investment of £10,000 and last for 4 or 8 years.

How do house price derivatives work?

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