A finance firm claims that because of the ever increasing number of unfair tax grabs, licensing, and new regulations’ red tape nonsense ‘shoved’ onto private rental sector landlords, there is a real danger of causing around a third of million closing up shop.

According to its analysis the finance firm says if this happens then the sector’s value would lose around £223.5 billion.

Currently the UK PRS is responsible for providing 18.8 per cent of all dwellings which is around 5.6 million homes and the firm estimates these are owned by 2.74 million landlords.

The firm believes there could be in the short run of a massive reduction in private landlords, as the government’s mindset is to continually deter buy-to-let landlords from investing further, in spite of the housing crisis, with its never ending punitive legislations and unfair tax measures severely hitting profit margins.

Those being hit the hardest are the smaller landlords referred to as amateur or ‘accidental’  which account for 14 per cent of  UK BTL landlords with one rental property, around 383,600 with the corresponding number of rented homes. The firm says this has the potential to reduce housing stock by 14 per cent of the 2.74 million homes.

The chief executive of the firm says: “In recent years, the UK government has looked to eradicate the amateur landlord via a string of legislative changes, designed to dent profit margins in order to help address the shortage of stock within the sales market.

“Firstly, this is not a practical or reasonable solution when really the answer is to build more homes. Secondly, in doing so, it’s the nation’s tenants who are paying the price, with a shortage in stock only driving the cost of renting ever higher.

“Should amateur landlords cease to exist, it would further reduce PRS stock levels by a significant amount and only exacerbate the problem further.”

Richard Merrick of PIMS, says: “Well if a certain party gets into power then there is every chance it will force PRS landlords to leave the sector with its ‘promised land’ of rent caps and further ridiculous red tape and tax cash grabs.”

Richard continues: “There are even suggestions of issuing Compulsory Purchase Orders on BTL homes, especially if landlords have already invested in EPC upgrades and measures to meet the proposed energy efficiency regulations.