Landlords have been dealt a mixed hand of tax cuts and fewer reliefs in a bid to encourage more to sell up and leave the rental market.

The chancellor, Jeremy Hunt, said that his tax reforms would help more first-time buyers to get on the property ladder, but critics are not convinced that the changes will make a material difference to the housing crisis.

The budget on Wednesday included a surprise cut to capital gains tax (CGT) on residential property, reducing the rate paid by higher-rate taxpayers from 28 per cent to 24 per cent from April 6. It will save the average higher-rate landlord or second-home owner about £3,300 on a property sale, reducing their CGT bill to £19,800, according to the property company