A number of property agents have blasted a government move which will cut mortgage interest relief on buy-to-let homes.
Chancellor George Osborne announced in the budget that relief will be cut to the basic rate of income tax - currently 20%.
It will hit the ability of buy-to-let landlords to claim repayments back against their income, which has benefited larger landlords.
However some opponents believe it will deter investors from delivering much-needed rented homes.
Nicholas Leeming, chairman of estate agent group Jackson-Stops & Staff, said: “This a major blow to a sector that is heavily reliant on private investors and who provide a crucial supply of property to the private rental sector.”
Ed Heaton, founder of Heaton & Partners, said: “The changes to mortgage tax relief for buy-to-let landlords will particularly hit those owning properties in prime central London, where the sums involved are very high and the yields extremely low.”
He added: “If one accepts the Bank of England’s arguments, then the proposed changes are probably a proportional response to the issue.
“It might even help release a little more prime stock in central London to the market in the next year or so, although this might be wishful thinking.”
The chancellor said that 15% of new mortgages are now buy-to-let.
Osborne also unveiled plans to increase the amount of relief for home owners renting out a room in their house to £7,500 from next year.
