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The Government has been warned that the supply of rented homes could shrink if it presses ahead with plans to ban landlords from evicting tenants without due reason.
The Residential Landlords Association (RLA), an industry pressure group, said it has been inundated with letters from buy-to-let landlords who are angry at the proposals to end section 21 repossession rules.
Almost 6,500 landlords replied to its most recent survey, the biggest response the trade body has ever received. Its data suggests that almost half of landlords (46pc) plan to withdraw from the sector, either in part or entirely, because of the proposed ban.
The RLA has warned that these changes, along with the introduction of a much stricter tax regime, will lead to a reduction in the number of properties available to rent.
The Royal Institution of Chartered Surveyors, another trade body, has previously warned that rents could increase by 3pc each year over the next five years because of the new rules.
The ongoing crackdown on buy-to-let is also causing landlords to postpone other crucial decisions about their properties, the RLA warned. Its research said 40pc of investors were adopting a "wait and see" approach before pouring any more cash into the sector.
The Government has promised to bolster the rules under section 8, which allow landlords to repossess properties in the event of rent arrears or anti-social behaviour. But the RLA argued that this process was too slow, given landlords must apply to the court before action can be taken.
It takes around five months to go from application to repossession using section 8, it said.
There have been proposals to introduce a special housing court, which would allow all housing disputes to be heard by a single body. The RLA said 91pc of landlords would support the establishment of such a court.
David Smith of the RLA said: “With the demand for private rented housing showing no signs of slowing down it is vital that landlords are confident that they can quickly and easily get back their property in legitimate circumstances.
“Whilst the system should clearly be fair to tenants, it needs also to support and encourage good landlords. This needs to be underpinned by a court system that is fit for purpose and properly resourced. At present it is neither.”
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