Landlords are calling on the Government to review how they are taxed after new figures reveal the '�devastating' impact higher levies are having on the private rented sector.
The National Residential Landlords Association (NRLA) says new research conducted on its behalf by consultancy BVA-BDRC shows that, while 65% of the 750 landlords it canvassed reported rising demand for privately rented homes in England and Wales, a third of them said they plan to reduce the size or their portfolios.
This is the highest level of '�planned disinvestment' seen in more than six years according to the research.
Only nine per cent say of landlords said they plan to increase their portfolios over the next 12 months, down from 14 per cent who said they would do so in Q4 2021.
The NRLA says that while politicians in both England and Wales are using tax to reduce investment in the PRS, it is having unintended consequences.
This includes recent changes to mortgage interest relief, higher stamp duty and an '�effective' hike in CGT.
Its comments are designed to land prior to Jeremy Hunt's looming Budget and the NRLA wants the Treasury to analyse the combined impact of all recent tax changes on the supply of homes to rent.
'From students queuing to view properties, through to benefit claimants who struggle to access homes they can afford, the impact of the supply crisis in the rental market is stark,'� says Ben Beadle, Chief Executive of the NRLA (pictured).
'The harsh truth is that the Government's efforts to discourage investment in the sector are working.
'But punitive taxation alongside record demand for rented housing is a disastrous combination that serves only to hurt renters.
'The supply crisis we see is entirely Government made and the policies of successive Chancellors have backfired spectacularly '� it is time to change tack.
'We encourage all of those with an interest in housing supply to contact their MP in support of our call, making use of the NRLA's toolkit to help.'�
Read the NRLA's full Budget submission.