Since April landlords have only been able to offset 75% of their mortgage interest against rental income.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “The government’s anti-landlord policies have been hitting smaller players. Over the past year, buy-to-let 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 buy-to-let mortgages, have not been investing on the same scale as previously seen.
“Buy-to-let used to be seen as a viable way to gain additional income or to fund retirements, but the gradual removal of buy-to-let 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.”