Buy-to-let valuations dipped to 7% of market activity in April as the reduction to landlord’s mortgage tax relief begins, according to the latest research from Connells Survey & Valuation.

The proportion of BTL valuations is 6 percentage points below the five year average for April. BTL valuation activity is even lower than it was in April last year – when the stamp duty surcharge was introduced.

The decline in BTL valuations has likely been driven by the stamp duty surcharge and the cut to BTL mortgage tax relief. As of April, landlords can only offset 75% of mortgage interest payments against rental income – down from 100% in March.

John Bagshaw, corporate services director at Connells Survey & Valuation, said: “The Government’s anti-landlord policies have been hitting smaller players. Over the last year, BTL valuations have made up less than 10% of market activity, representing a new low in April.

“This could suggest that smaller, private landlords, who typically use BTL mortgages, have not been investing on the same scale as previously seen. BTL used to be seen as a viable way to gain additional income or to fund retirements, but the gradual removal of BTL mortgage tax relief will make it much harder for the man on the street to invest.”

“Having said that, buy-to-let valuations only fell 1% month-on-month and so the comparison with the five year average doesn’t always tell the whole story.”