The NRLA said 65pc of landlords have raised rents in the last year to cover increased mortgage costs.

But many tenants are now hitting the limit of the rent increases they can afford, prompting 35pc of landlords to freeze rents last year, the NRLA said. Just 1pc of landlords surveyed chose to decrease rents.

A record high 21pc of landlords sold in the last year, according to the trade body’s Landlord Confidence Index, while a record low 8pc bought.

But this week it emerged that Jeremy Hunt’s plans to cut the higher rate of capital gains tax from 28pc to 24pc would leave property owners paying hundreds more when they sell up.

Almost nine in 10 higher-rate paying landlords will also be liable for a larger tax bill, with an extra liability of £454, according to estate agency Hamptons.

Richard Rowntree, of Paragon Bank, said: “Landlords make a significant contribution to the economy and job creation directly, as this report highlights, but also through facilitating labour mobility.

“The private rental sector has the highest proportion of tenants in employment compared to other tenures and provides economic fluidity, enabling the workforce and companies to quickly adapt to changes in demand.”

A Government spokesman said: “There is no evidence to suggest a fairer private rented sector for tenants and landlords will lead to a reduction in supply.

“Our landmark Renters Reform Bill will deliver a fairer private rented sector for both responsible tenants and good faith landlords.”