It will still be possible to make a profit as a landlord, but many within the housing sector believe it will be more difficult - and that the changes might lead to cost-cutting, potentially putting tenants at risk.
“Profit will remain marginal, especially when you factor in maintenance arrears and void periods,” said Mr von Grundherr. “These additional costs are often neglected by the decision-makers who view the buy to let sector as an apparent cash cow.
"Many landlords will simply leave the sector and invest in other asset classes. Providing a below-par property is, of course, unacceptable - but it could be viewed as favourable compared to no property at all.”