Many letting agents could be put out of business by Chancellor George Osborne’s plans to cut landlords’ tax breaks, it has been claimed.

A website, saynotogeorge which is sponsored by a lettings agent, says that with reduced income landlords will have to make savings and may decide to stop using agents.

The website has launched a petition opposing the Chancellor’s  plans to restrict mortgage interest relief for private landlords.

It has already attracted the 10,000 signatures it needs to prompt a Government response.

Currently landlords can claim tax relief on monthly interest repayments at the top level of tax they pay – up to 45%. However, the Chancellor plans to cut relief to the basic tax level of 20%.

Osborne said the changes, which will be introduced over a four-year period from April 2017, would “level the playing field for home buyers and investors”.

The website is the brainchild of Peterborough landlord John McKay and sponsored by letting agents Bee Lettings.

As of yesterday afternoon the petition had gathered 10,892 signatures, meaning the Government will be forced to issue a response – but 100,000 signatures are required for the petition to force the Government to consider a Parliamentary debate.

The website says the proposed changes could impact hugely on letting agents.

It says: “Initially letting agents may see the change in tax as a good thing because it will force rents up. In most cases they earn a fixed percentage of the rents collected so they’ll see an increase in their profit.

“Unfortunately they may also have to deal with a higher amount of tenant complaints about maintenance. As landlords are going to be hit badly by this tax increase they will have less money to spend on looking after their properties.

“The longer term consequences are likely to put many agents out of business. In the first instance landlords will perhaps question whether they can afford to continue paying the agent’s fees and may consider taking their properties under their own management.”

Business insurance and utility comparison website makeitcheaper.com said tenants would also be hit by the changes.

A survey carried out by the site revealed that 38% of tenants felt uncertain about how the cuts would affect them, more than half were calling for greater rental controls, and just over one third said they would move to a different property in the event of a rent increase.

But David Whittaker, managing director of buy-to-let mortgage business Mortgages for Business, painted a slightly brighter picture.

He said: “Since the summer Budget, our experience is that both mortgage lenders and landlords are still extremely optimistic about the private rented sector in the UK.

“Changes to the tax system will not change the fundamental drivers of growth in the buy-to-let industry. Demand from tenants remains strong, and healthy rental yields are providing a powerful incentive for further investment in homes to let.”

You can view the petition here