A number of buy-to-let landlords will be forced to either raise their rents to prevent their properties from being un-mortgageable amid rising interest rates, or simply sell up.

MPs were told this week that many renters could find that there is soon a major shortage of homes to rent as landlords struggle with higher mortgage rates.

Ray Boulger, from mortgage broker John Charcol, said landlords may be more reluctant to hold on to buy-to-let properties which could have a “serious impact” on the availability of properties in the PRS.

He said the situation was particularly acute in London and South East England, where rental yields are among the lowest in the country.

The Commons Treasury Committee has been hearing from mortgage experts.

The session was designed to review the state of the market during and following the chaos caused in part by the recent mini-Budget.

New fixed-rate mortgages have increased significantly in recent months, and jumped in the aftermath of the mini-Budget announcement, when investors were spooked by large tax cut pledges that were set out without specifying how they would be paid for.

Boulger said that the buy-to-let sector was likely to see greater stress than other areas of the mortgage market. It is estimated that about 40% of landlords have a mortgage on their rental properties.

Savills issued a new house price forecast yesterday, predicting that property prices in the UK will fall by an average of 10% in 2023.