Two recent surveys have revealed a general consensus about the strength of buy to let. Paragon Mortgages found that landlords in the UK expect to increase their buy to let investment by 5.6% in the year ahead, with some 41% of landlords declaring themselves more optimistic about their prospects. There has also been a 5% rise in number of landlords expecting tenant demand to increase with 36% saying such demand is either growing or booming. The good news is that these figures suggest a steady pattern of growth and are not so extreme as to imply an unsustainable boom.
Meanwhile the British public at large would generally prefer to invest in residential property than in a pension, according to property investment web site Property Moose. 54% of people believe residential property is a better investment than a pension, while only 11% think a pension is better. The main reason people do not invest, as cited by 57% of respondents, is that they simply do not have enough initial capital. Only 10% believed buy to let was too difficult or too much of a hassle, while 15% saw it as too risky. These figures are especially interesting in light of new rules to be enforced next year which will allow people to withdraw cash from their pension pot to invest as they wish.