Over the past two decades, investing in buy-to-let has been a relatively lucrative way to make money, which is why so many people have opted to supplement their income or grow their wealth through property than shares or cash.

But after 20 years, tax changes mean buy-to-let no longer delivers the returns it did, and with higher interest rates, investment in the sector is now falling, as higher taxes and mortgage costs hit landlords hard.

“The situation for landlords is pretty dire at the moment,” Sally Lawson, founder of Agent Rainmaker. “Not only has the rise in mortgage rates led to landlords paying out considerably more each month.”

Reflecting on the repercussions of Section 24, which she views as a “catastrophe”, Lawson added: “The imposed legislation also means that a landlord is now essentially having to pay more tax on minimal profits!

“This is unsustainable and yet despite the industry appealing to the government to reconsider, landlords remain in an untenable position and are subsequently having to make some really tough decisions.”

She points to estimates that suggest over a third of a million landlords are on the brink of walking away from the private rental sector as they see selling up as their only viable solution. A report by finance firm Octane Capital states that this mass exodus could essentially wipe over £200bn from the industry in one foul swoop.

Landlords that do stay are being forced to put their rents up in order to covet their own rising costs.  The Office for National Statistics recorded a 5.3% increase in the cost of private rents in the year up to July 2023 – the largest increase the ONS has seen since its inception.

Lawson wants more agents to help landlords by communicating  with them.  To understand their individual situations including whether they have a mortgage on their property – as these will be the landlords most at risk.

She continued: “Communication is key in any landlord relationship, and this goes for the whole agency, including your management team who should make sure that not only are landlords up to date with rents, but that they’re always getting the current rental rates for their property.

“And, if all else fails – as an agent you can support your landlords to find suitable investors for their properties which they can sell as a tenanted investment – getting the buyer to agree to using your managed services, and keeping the tenant in their home.

“Essentially, without our landlords we simply wouldn’t exist as an industry and so for the sake of everyone, we have to do all we can to support property owners navigate their way through this tumultuous time.  And we need to do it now.”

Solutions to the challenges being experienced by agents in 2023, including the impact of ever-rising interest rates and Clause 24, will be discussed in depth at this year’s Agent Rainmaker Live, taking place on 9-10 November in London.