.The National Residential Landlords Association has called for a full review of how landlords and the private rental sector are taxed.

In its submission to HM Treasury ahead of this afternoon’s Budget statement, the association has supported its call with data from research consultancy BVA-BDRC showing a third of landlords are planning to sell.

At the same time 65 per cent of landlords are seeing demand increase.

The association is demanding that Chancellor Jeremy Hunt analyse the combined impact of all the recent tax changes that have been hitting landlords – the restriction of mortgage interest relief, the three per cent stamp duty surcharge on the purchase of buy to let homes and, in Hunt’s own Autumn Statement last year, an effective hike in Capital Gains Tax.

The association instead wants pro-growth tax measures to encourage landlords to remain in the sector and enlarge their portfolios.

NRLA chief executive Ben Beadle says: “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.

“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 – it is time to change tack.

“The Treasury needs to undertake a comprehensive review of the taxation of the rental market and introduce pro-growth measures to support renters to access the homes they need.”

Other proposals advocated by the NRKLA include a sustained programme of support for landlords and homeowners, to help them make vital energy efficiency improvements to meet Net Zero targets, and the reversal of the freeze on Local Housing Allowances (LHA) rates, which should be re-aligned to at least the 30th percentile of comparable local rents, with a commitment instead to maintaining rates at market rents.

The association also wants a full assessment of tenant support options including Discretionary Housing Payments to ensure that those affected by the cost-of-living crisis have the help they need.