The National Residential Landlords Association (NRLA) says ministers need to act to tackle growing costs in the rental market as buy-to-let (BTL) mortgage hikes risk further increasing rents.

NRLA warned that most landlords simply cannot absorb growing costs without passing them on through higher rents.

This comes after Moneyfacts revealed yesterday that BTL fixed mortgage rates are soaring due to unrest in the Middle East.

According to HM Revenue and Customs, the average rental income declared by unincorporated landlords is £19,400 a year, which NRLA highlights is significantly less than what someone earns from a full-time minimum wage salary.

The NRLA says low-income renters now face “the double whammy” of rising rents, coupled with an ongoing freeze on housing benefit rates.

While calls have been made for forms of rent control, the NRLA is warning these would simply choke off the supply of homes to rent at a time when tenant demand remains so high.

The NRLA has called on the government to develop a plan to reduce cost pressures faced in the market.

These include scrapping next year’s income tax hike on the sector and keeping the costs of joining the private rented sector Ombudsman and database as low as possible.

In addition, the NRLA says the tax system needs to be reformed to ensure it better supports proactive energy efficiency improvements to homes to rent and asks the government to support low-income tenants by unfreezing housing benefit rates.

NRLA chief executive Ben Beadle says: “Whilst the Government cannot be held responsible for the impact of the conflict in the Middle East, it should take action where its own policies will lead to higher rents.”

“Growing taxes, uncertain costs associated with the Renters’ Rights Act and the ongoing housing benefit freeze will create the perfect storm for tenants.”

“With so many people reliant on the sector for a place to call home, ministers need to recognise the real-world consequences of their decisions.”

“It is simply stereotyped nonsense that every landlord can somehow absorb ever-increasing costs indefinitely. They can’t, and as a result, it is tenants who will suffer most as rents continue to creep up.”

“The Government needs to take action to support renters and ensure a healthy, vibrant market.”