Tenants are likely to bear the cost of the latest tax rises for landlords, according to a new survey.
Increasing taxes will result in a reduction of homes on the rental market which will lead to prices rising as a result, according to experts.
Following the recent surcharge on stamp duty and the limitations on tax relief for buy to let mortgages, more than half of landlords have said they will not be buying any more BTL properties.
Furthermore, rents are expected to rise due to the lower number of properties available to let on the market, Rentify has revealed.
The tax changes mean that a stamp duty bill for a £275,000 buy to let will rise to £12,000 from the current £3,750, as of April next year.
A survey of 1,000 landlords reveals that both the stamp duty changes and tax relief changes are likely to slow down the market with almost half of those surveyed, expecting supply and demand of BTL properties to fall significantly.
However, some argue that the changes could ease competition for first time buyers by restricting the number of people buying properties to let.
This could in turn, help those who are renting to get on to the property ladder too.
12% of landlords said they will rush to buy before next year’s April deadline, while a further 12% said they will buy fewer properties than previously planned.