The pensions crisis is boosting interest in the buy-to-let market with investors opting to put their money into homes.
The Royal Institution of Chartered Surveyors has said that many landlords are viewing their rental properties as being a significant part of their pension plan.

RICS said that of those surveyed, the majority of investors see property as a long-term investment. Only with just 4% selling up when tenancies came up for renewal – which is half the level seen this time last year.

The group also said that demand for rented property was currently at its strongest since January last year. 23% more surveyors in rise in the number of people wanting to rent during the three months to the end of October 2005. This is put down to rising employment levels, as well as demand from first-time buyers who were unable to get on to the property ladder.

Additionally increased immigration into the UK following the accession of the eastern European states into the European Union was also having an impact.

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 this year.

According to RICS spokesperson, Jeremy Leaf: “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.

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.”