Pension crisis strengthens rental market
The ongoing pensions crisis is boosting the buy-to-let property market, according to the Royal Institute of Chartered Surveyors (RICS).
RICS explained that landlord insurance holders are increasingly keen to hold on to their rented properties to boost their income for retirement.
Jeremy Leaf, RICS housing spokesman, stated, "The strength of the market is demonstrated by the fact there has been no significant investor exodus in the past year despite shrinking returns as house price rises stall."
He said that buy-to-let mortgage holders are viewing their role as a landlord as more profitable than trying to sell their properties as prices remain unstable.
Statistics show that just 4.1 per cent of landlords are planning to sell instead of re-let. This is less than half the number who resold last year and suggests that rental market is much stronger than the property real estate market.
Leaf continued, "Many buy-to-letters are now choosing to stay in for the long haul, viewing their investment as a more significant part of their pension plan. For the time being at least this looks set to continue, with public confidence in pensions at an all time low."