A survey of 1,000 buy to let investors by the Residential Landlords’ Association shows that around a quarter are saying they will quit the private rental sector because of tax changes.

The impact on investors’ financial viability is being caused by the restrictions on mortgage interest tax relief being introduced from April.

The study, by the Residential Landlords’ Association, follows a previous survey which found that 56 per cent of landlords will increase rents to cope with the tax changes.

“The RLA’s findings are a worrying sign of the potential trouble ahead for tenants as a result of the previous Chancellor’s tax rises. Any reduction in supply is going to make it more difficult for them to find a place to live and will inevitably drive rents up” says David Smith, policy director at the RLA.

“Ahead of the Autumn Statement [next week] we are calling on the new Chancellor to consider the evidence, reverse policy and support growth in the rented sector” he says.

There has been a series of high-profile industry attacks on the mortgage interest change, on the recently-introduced stamp duty surcharge on buy to let properties, and on the end of the automatic 10 per cent Wear & Tear allowance for landlords.

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