The head of Generation Rent has dismissed warnings of a landlord exodus, saying such claims “should be taken with a large pinch of salt”.

His remarks appear in a Guardian report focused on the 2% rise in tax on rental income announced by Chancellor Rachel Reeves in November’s Budget.

But of course Ben Twomey the organisation’s chief executive, argues that most landlords are in a position to pay the higher tax burden.

He states: “Regardless of costs, landlords find it all too easy to raise rents anyway when wages are rising and building new homes slows down. 

“While the Renters Rights Act will stop landlords evicting tenants just to raise the rent, it will still be possible for landlords to force rents up in line with speculative adverts. 

“Renters still need real protections from unaffordable rent increases.”

The tax changes announced by Reeves will see basic-rate taxpayers charged 22% on rental income.

Those on the higher rate will pay 42%, while additional-rate taxpayers face a 47% charge.

The Guardian — historically sceptical of landlord interests — highlights one landlord who expects the increase to add £2,500 to their annual bill.

It also points to data suggesting that successive tax rises have contributed to a gradual reduction in the number of landlords in the sector.