News

Buy-To-Let 'Pensions' Bolster Market - Southern Private Landlords Association March 06

The continuing pensions crisis is bolstering the UK buy-to-let market as investors choose to hold on to properties for the long term, says RICS (Royal Institute of Chartered Surveyors).

Tenant demand for rental property is at its strongest since January 2004. 23 per cent of surveyors have reported a rise in demand over a fall, compared to 20 per cent rise in the previous quarter.

Rent levels have increased for the tenth consecutive quarter.

Factors driving tenant demand are rising employment levels and continuing demand from first time buyers unable to get a foot on the housing ladder. Increased immigration into the UK following the accession of the eastern European States is also having an impact in some areas.

The increase in tenant demand has been strongest in London, the South East and the Eastern region. The North, Wales and the Midlands saw increases from an already firm base. Activity in Scotland is fairly subdued following strong increases earlier last year.