The Chartered Institute of Housing (CIH) claims that tax relief for buy-to-let landlords is damaging first-time buyers chances of getting on the property ladder.

It believes the government should rein in the buy-to-let market to ease a growing crisis in affordable housing.

The institutes president, Paul Diggory, said the phenomenal growth in the sector had pushed prices out of reach for many first-time buyers and also resulted in flats in new developments remaining empty.

Tax laws allow landlords to offset the costs of running a rental property against the tax payable on rental income and they can offset mortgage interest, letting agent fees, replacement furniture and repairs.

At the institutes annual conference, Diggory claimed: “Buy-to-let owners have a financial advantage over those trying to buy their first home, as well as pushing house prices ever higher. Investors can make enough money from rising house prices without having to let the flats to tenants - and they are buying whole floors.”