Propertymark has warned that a significant number of landlords will exit the private rented sector (PRS) unless the government comes up with a support package.

The trade body cites a recent survey by Mortgage Works shows 20% of landlords saying it likely they will leave the PRS within the next 12 months because of recent changes in regulations and taxation, tenant debt and a backlog in the courts.

It adds that the government itself points out that rent makes up 42% of total gross income for “most” landlords and that the proportion of private renters in arrears has tripled from 3% to 9% over the course of the pandemic.

“If the upward trend in this data continues the number of renters in arears could reach almost 800,000 by the end of 2021,” Propertymark says.

In a written representation to the Autumn budget and spending review for 2021, Propertymark recommends a support package consisting of an interest free loan scheme specifically to help renters pay off these arrears and reforms to the court system to help deal with the volume of possession hearings.

Propertymark chief policy adviser Mark Hayward says: “We are urging the UK government to look at the bigger picture here. It’s not about propping up landlords but more about doing the right thing for the country as we work to build back better from the devastating effects of the pandemic.

“Ultimately, the housing system needs to work for everyone, but landlords are being asked to carry too much of the financial burden caused by the pandemic. We are risking good landlords leaving the market.

“The PRS supports 5 million households in the UK and is an important provider of homes against a backdrop of an overwhelmed social housing system.

“However, at the moment, the risks associated with being a landlord are incredibly high and the financial help for tenants and landlords struggling under the weight of accumulated Covid-related debt is inadequate