In the Budget, the Chancellor announced plans to restrict tax relief on finance costs for individual buy-to-let landlords of residential property to the basic rate of tax from the current allowance set at the 40% rate.

The restriction will be phased in over four years, starting from April 2017 to give landlords time to plan for the change.

This is designed to limit the advantage that these individuals currently enjoy over those purchasing their own home. At the moment, buy-to-let landlords own 15% of residential property.

‘First, we will create a more level playing-field between those buying a home to let, and those who are buying a home to live in,’ said the Chancellor, George Osborne.

‘Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot. And the better-off the landlord, the more tax relief they get.