According to mortgage broker Landlord Mortgages, there has been a sharp slowdown in the number of residential purchases being made by investors in recent weeks, while some estate agents have seen a rise in the number of amateur landlords selling up and banking profits.

Lee Grandin, director of Landlord Mortgages, says: “Many landlords are facing a dilemma as the rising cost of borrowing means that rents may be less than their mortgage interest. The figures haven’t stacked up well in the last two to three weeks. Landlords are having to find bigger deposits to make their mortgage work, and this in turn limits the number of properties they can buy.”

Tim Hyatt, head of UK letting at Knight Frank, has recently seen a rise in the number of letting properties coming up for sale. “It seems that landlords are reassessing their position and deciding either to stay in for the long term or to sell up. We have seen 10-15% of our lettings being put up for sale in the last six months or so, whereas normally this figure is minimal”, he said.