Low confidence in pensions is encouraging investment in bricks and mortar in the UK, according to a study published by the Royal Institution of Chartered Surveyors.
Most landlords see their property as a long term investment, with only 4.1% choosing to sell their property rather than re-let when the tenant moves out, half the level of this time last year. Landlords are charging more too, with rent levels increasing for the tenth consecutive quarter.
Demand for rented property is rising, due to continuing demand from people unable to buy their first home. The increase in demand has been strongest in London, the South East and the Eastern region. RICS spokesperson Jeremy Leaf said: The strength of the market is demonstrated by the fact that there has been no significant investor exodus in the past year despite shrinking returns as house price rises stall.
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.