The chancellor, Rishi Sunak, has been urged not to introduce a capital gains tax increase after the Office for Tax Simplification (OTS) suggested last week that a doubling of rates and a reduction in exemptions could raise around £14bn.

This has triggered fears that buy-to-let landlords, investors, those with second homes, and small business owners could face significantly higher tax bills.

David Alexander, joint chief executive office at apropos, commented: “The OTS review of CGT suggesting a huge increase in the rate of taxation for landlords, second home owners and investors would have an enormously detrimental impact on the housing market.”

Targeting the private rented sector is “extremely risky” as it is the second largest provider of homes in the UK and it would be impossible to fill this gap if there was a mass exodus of landlords and investors from the market over a short period, according to Alexander.

He added: “Any large-scale exit from this market would flood the market with homes depressing prices at a time when the property sector is in desperate need of support.”