Mr Hunt said that, along with the dividend allowance, “these changes still leave us with more generous allowances overall than countries like Germany, Ireland, France, and Canada”.

However, Ms Beveridge said: “Although the Chancellor made it clear he was hoping to encourage landlords to sell up and add new housing supply into the market for first-time buyers, the reality is that the capital gains tax changes taken as a whole will likely act as a disincentive. 

“Most landlords leaving the market this year will end up paying more tax than two years ago, not less.”

A Treasury spokesman said: “Capital gains tax changes made at Spring Budget mean that over 100,000 higher rate taxpayers will see their bills cut by £2,600 on average, encouraging sales and bringing more homes to the market.

“Changes to the Annual Exempt Amount supports strong public finances while also making the system fairer and more progressive – bringing the treatment of investment income and capital gains more in line with that of other sources of income, whilst still ensuring that individuals are not taxed on low levels of capital gains.”