Accountants Lubbock Fine looked at the number of purchase that were subject to the stamp duty surcharge, which is paid by anyone buying buy-to-let or additional properties.

It found the number of buy-to-let and second home purchases fell by 14% from 224,700 in 2022/23 to 193,700 in the year to June 2024.

Purchases reached a peak of 287,200 in the year to June 2021.

The government first introduced the 3% extra stamp duty charge on additional properties in 2016.

Lubbock Fine says the fall in BTL purchases has partly been driven by the sharp rise in interest rates as well as tax changes that have made it less attractive.

The changes have included scrapping tax relief on mortgage interest,

reducing the expenses landlords can offset against their tax bills for wear and tear on their properties.

Cutting private residence relief has also increased the amount of capital gains tax landlords must pay when selling a property that used to be their main home.

Lubbock Fine partner Andy Noton says: “We’ve seen a marked decrease in purchase activity for rental properties.

 “Concerns that the new government will increase CGT at the next Budget or add to the red tape for landlords is encouraging more landlords to exit the market and fewer to buy.

 “However, a continued fall in mortgage rates could change all that. Rents have continued to climb so a reduction in finance costs could suddenly improve the economics for landlords.”