Pension funds as landlords can only improve rental sector
NEWS that the National Asset Management Agency is set to sell 10,000 apartments deserves a cautious welcome. While NAMA remains vague about the details, it is clear that the agency plans to sell large blocks of flats to pension funds and other long-term investors. While financial institutions don't have the best reputation these days, they will almost certainly be decent landlords, and better than many traditional landlords who dominate the market today.
The rental sector plays a vital part in ensuring people have a roof over their heads. Home ownership has fallen back to 1970s levels and is now below the European Union average, though it remains slightly higher than the average in western Europe.
The 2011 census showed the private rented sector has grown by 50pc in five years, to the extent that it is now back to the size it was during the 1950s. Almost one in five households now lives in private rented accommodation, and this figure is growing.