Landlords have warned that there is a looming rental crisis caused by the Government’s “reckless” plan to hit landlords with tax changes.
The National Landlords Association said that as a direct result, landlords were leaving the market and rents are rising fast.
The NLA hit out at changes made in 2015 by then chancellor George Osborne.
These included the phasing out of tax relief on mortgage interest charges.
This phasing out ends in April, when landlords will be given a tax credit of 20%.
The NLA cited figures from Zoopla showing that private rents rose by 2.6% in the last quarter of last year, with an 8% rise in tenancy demand and a 4% drop in the number of available properties.
NLA chief executive Richard Lambert said that landlord confidence is at an all-time low, with many being forced to exit the sector altogether.
He said: “Five years ago, we warned the Government that its reckless plan to scrap legitimate tax relief on landlords’ finance costs would backfire, disrupting the supply of private rented homes.
“Now, in 2020, households across the UK are reaping the whirlwind sown by David Cameron as investors turn their attentions elsewhere.
“The new government has an opportunity to break with the past and work in concert with landlords to ensure housing demand is met with good quality rented accommodation.
“We urge Sajid Javid to use his first Budget to tackle the inequity of the way his predecessors have taxed landlords.
“By focusing on Capital Gains Tax, extending rollover relief and reintroducing taper relief, landlords could be encouraged to reinvest for the long term rather than exit the market, thereby helping to avert an impending crisis.”