A report by former Treasury official Chris Walker, commissioned by the NRLA, highlights how the private rental sector plays an important role in providing the flexibility and mobility that tenants need to access jobs and training.

The research reveals that 45% of private renters live within 5km of where they work, compared with just 29% of owner-occupiers.

Estimates by accountancy firm PwC suggest that small and medium-sized landlords support almost 400,000 jobs across the UK.

Zoopla has previously reported that the number of homes available to rent is down by 10% compared to 2019, while tenant demand has risen by 23% over the same period.

This shortage would only get worse if taxes increase, pushing up rents for tenants, according to the former head of the Institute for Fiscal Studies, Paul Johnson, who recently spoke on the NRLA’s podcast.

The NRLA concludes that the shortage of available rental homes versus demand is “hindering growth and productivity”, in a warning to the chancellor not to further increase taxes on landlords in the upcoming budget.

NRLA chief executive Ben Beadle says: “The private rented sector is a significant driver of labour and social mobility. 

“It enables people to move for work, access higher education, and seize new opportunities – everything the Government wants to promote as part of its growth agenda.

“Instead, landlords are facing yet more speculation about tax hikes that would hinder investment, reduce supply, and ultimately drive-up rents.

“The Chancellor must use this critical Budget to back responsible landlords who provide good homes and support local economies. 

“That means using the tax system to encourage long-term investment, as opposed to prioritising short-term revenue grabs.”