Half of UK landlords plan to exit the private rental sector in protest against increased regulation and cuts to lucrative tax reliefs.

The findings of Aldermore Bank’s buy-to-let research suggest 48 per cent are considering selling their portfolios, and abandoning the letting market.

Widespread unrest among landlords follows a series of rule and regulation changes to reduce government incentives for those letting in the private rental sector, and measures to boost home ownership among the young.

These include the introduction of a 3 per cent stamp duty surcharge on rental and second properties, the gradual removal of tax relief on mortgage interest payments, a letting agent fee ban, and tighter restrictions of lending.

A quarter (28 per cent) said regulatory change was the biggest threat to their investment, while others cited tax changes (33 per cent) and high maintenance costs (28 per cent) as barriers.

Almost half (49 per cent) of landlords said the stamp duty increase has stopped them expanding their portfolios. Three in five (59 per cent) forecast the ban on letting fees will result in landlords raising their rents due to the increased costs put on them.

Increased admin was another complaint, with two in five (40 per cent) saying more rules meant their most recent mortgage application was harder to make than previously.

As a result, nearly three in five (59 per cent) landlords say it is much harder operating in the rental sector now than five years ago, according to the Aldemore survey.

Most (68 per cent) believe the changes have been too broad, and are calling for a more targeted approach from the government and regulators to go specifically after rogue landlords.

Despite the pressures, the research suggests more than half (52 per cent) of landlords would still recommend the avenue as an investment opportunity.

Group managing director of retail finance at Aldermore Damian Thompson says: “Private landlords exiting the UK market would mean less choice and likely impact negatively the quality of rental properties for tenants. 

“The number of people renting in the UK has been rapidly growing, up 1.7 million in ten years, so it is vital there is enough rental supply to meet this demand.

“Landlords will need support and advice on how to manage their portfolios going forward from lenders and the wider industry so they can continue to support the private rented sector the way it needs to be.”