In May, according to polling by research consultancy BVA-BDRC, 33% of private landlords in England and Wales said they planned to cut the number of properties they rent out.  This figure is up from the 20% who said they planned to cut the number of properties they let in the first quarter of 2022.

By some measure of contrast, a meagre 10% of landlords now say they plan to increase the number of properties they rent out.

It’s not hard to see why. Buy-to-Let once offered untold returns from capital gains and profitable income. But this has been under siege from a toxic mix of withdrawn tax reliefs, regulatory demands and tenant protection, not to mention the omnipresent increase in the cost of borrowing which has been the final nail for many whose investments are highly leveraged.

Estimates this month from the estate agent Savills showed that 25,000 homes in the UK were sold by landlords between April and May, compared with 22,000 in the previous two months.

The increase in sales has taken off since the height of the Covid pandemic, as landlords started to feel the pinch of rising costs and interest rates, which made new buy-to-let mortgages – particularly interest-only contracts – more expensive to repay.

HMRC’s Capital Gains Tax data reveals a host of landlords selling up as they react to increased mortgage rates, PRS reforms and EPC requirements.

The figures from HMRC show 139,000 taxpayers reporting 151,000 disposals of residential property in the 2022/23 tax year amassing a total liability of £1.8bn, which is much larger than two years previously.

What of course is less clear is who is buying these properties. Policy makers once dreamt these were the opportunity for a swathe of first-time buyers but the affordability crisis has touched everyone in the property buying market. It is probable that a significant proportion are being bought by wealthier landlords with deeper pockets and an ability to await a turn in the market.

In the meantime, the news that EPC regulations may be paused until 2028 (and whisper it 2030) means there is just as much uncertainty as ever and investing in properties is being put on hold. This may provide financial relief but if the date is ever fixed, it will increase the demand for too few contractors to retrofit and upgrade properties. This will cause another inflationary spike that landlords and everyone else competing for their services will be expected to pay.

The picture appears bleak and yet it needs a policy answer as much as it needs an economic lucky break. Yes, there was a collective sigh of relief from many in the mortgage market as inflation dipped a couple of months ago and again as it repeated its downward trend in the figures released in August. However, one swallow (or two in this case) does not make a summer.

Renting makes up around a third of our tenures in the UK and needs to be supported. The shape of that ownership might change but that we still do not have enough houses at the right price to meet the nation’s demand speaks volumes.

Nor should everyone own. Many people in today’s economy need mobility and the PRS market works well for them. Policy makers need to think more laterally about how they might ease the pain, over and above delaying EPC requirements. A successful housing strategy needs a healthy rental market.

James Ginley is director of technical surveying at e.surv