Mortgage lending fell to a four-year low during the final quarter of last year as tax reforms continue to deter buy-to-let landlords.

Sales of buy-to-let property have been falling, as reflected by the latest Bank of England figures which reveal that just 12.7% of mortgages in Q4 2017 went to buy-to-let borrowers – the lowest level since 2013.

It is down significantly from 14.4% a year earlier and 16.3% in the corresponding period in 2015.

The phasing out of valuable tax relief and the 3% stamp duty surcharge are clearly having an adverse impact on the market, while the additional restrictions on buy-to-let lending introduced at the end of September, at the request of the Bank of England’s Prudential Regulation Authority, is also making it harder for property investors to secure finance.

“It is more likely to be would-be novice landlords having second thoughts about investing in property as we are seeing experienced investors remain committed to the sector, with a significant proportion incorporating,” said Mark Harris at SPF Private Clients.