Landlords selling properties represent the single biggest threat to renters according to government data.

Three in ten landlords have indicated they intend to reduce the number of properties they offer or get out of the market entirely.

High interest rates on buy to let mortgages and changes to taxes mean that renting properties is no longer a guarantee of a good income for buy to let landlords.

At the same time, it has been reported that Labour might support giving powers to local councils to cap rents in some areas.

Speaking to BBC Radio Essex, Labour’s Shadow Chancellor, Rachel Reeves, she said: “I think that should be up to local areas to decide, there may be the case for that in some local areas, but as a blanket approach, I’m not convinced by that.”

A number of organisations are backing rent caps to protect people who have seen rents soar above increases in wages.

Earlier this week a report commissioned by Labour proposed the use of rent controls, arguing payments should not be allowed to rise quicker than local prices or wages.

The policy was recommended by Stephen Cowan, the Labour leader of Hammersmith and Fulham council, in a report that said a “double lock” should be introduced, linking rent increases to the lowest of local wage growth and inflation.

However, critics argue that any such measure is likely to drive more landlords to sell up, fuelling homelessness.

The National Residential Landlords Association (NRLA) said 45 percent of people who needed council help to prevent homelessness in the second half of 2023 were in trouble because their landlord planned to sell up.

This was more than twice as much as the next most common reason for the end of rental tenancies which was landlords planning to re-let the property.

The news comes in the wake of concerns raised by tenant group Generation Rent, who have warned that “landlords selling properties is a leading cause of homelessness.”

A poll of landlords for the NRLA has found that 83 percent reported that demand for rental properties by tenants is ‘strong’.

Despite this, the same survey saw 31 percent say they plan to cut the number of properties they rent out, compared with just nine percent who plan to increase the number of properties to let.

The findings are supported by recent Rightmove data which indicates that 50,000 properties are needed to bring the supply of rental homes back to pre-pandemic levels.

Ben Beadle, Chief Executive of the NRLA, said: “Landlords selling up is the single biggest challenge renters face.

“The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.

“More broadly, all parties need to accept widespread calls for policies to boost supply in the private rented sector.”