Buy-to-let landlords plan to leave the market in huge numbers next year as new analysis suggests that more than 100,000 rental homes have been sold since a punishing tax regime was introduced.

Investors have faced stringent restrictions since April 2017, when the Government started to limit the amount of mortgage interest and other costs that could be offset against tax. In some instances landlords face a marginal tax rate of more than 100pc.

These new rules are being phased in until 2021, but thousands of landlords have already decided to throw in the towel. Analysis of mortgage transaction data by Savills, an estate agency, shows that 103,900 more buy-to-let homes have been sold than bought since the new tax regime was introduced.

Many more look likely to follow. A market study conducted for Telegraph Money by Simply Business, a landlord insurer, found that more than a quarter (26pc) of buy-to-let owners planned to sell at least one of their properties during 2020.

The reasons for selling were varied, demonstrating the breadth of the changes that have hit the sector. The study found that 15pc of landlords were selling because of unfavourable tax rules, with a further 15pc leaving because of other government reforms.

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These include the proposed withdrawal of “no-fault” evictions and new laws that require landlords to pay for a licence when they let a property to three or more tenants. Many have also seen their profits squeezed: one in three investors reported lower rental yields this year than in 2018.

Lawrence Bowles of Savills said some landlords were selling properties in the south of England and reinvesting their cash in northern towns and cities, where returns are typically higher, but many others were leaving the market altogether.

However, because of the size or cost of the properties they are selling, few will be bought by young first-time buyers. Many are likely to fall instead into the hands of rich overseas investors.

Mr Bowles said: “The sort of properties landlords want to sell aren’t necessarily what first-time buyers will look for. It’s more likely to have benefited those who can afford to buy with cash, who aren’t affected by the tax relief changes.”

Michael Adair is a landlord who is considering selling up credit: John Lawrence

Other reforms have done little to ease landlords’ concerns. The Conservatives, Labour and Liberal Democrats have all pledged to end no-fault evictions by repealing “Section 21”, which allows landlords to evict tenants without giving a reason.

Tenants’ groups say this will give renters greater security in their home, but landlords fear they will not be able to evict problem tenants without costly and time-consuming court orders.

Even some long-standing landlords have decided to cash out because of the changes. Michael Adair, 66, owns three rental properties in Bedford and now plans to sell up.

“I am a small landlord and I’ve been dealing with rental properties since the Eighties,” he said. “We needed to stop rogue landlords, but now we’ve gone from no regulation to over-regulation.”

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Mr Adair plans to sell one property a year over the next three years to minimise his capital gains tax liability, as each of his properties has risen in value since purchase. However, he fears he may struggle to sell, as few existing landlords want to buy when returns have fallen in recent years.

Simply Business found that a third of landlords had seen their rental yields fall during 2019 and few were optimistic for the year ahead. It said 82pc of current investors had ruled out purchasing a new buy-to-let property next year.

Mr Adair is among them. “The private landlord is still needed,” he said. “But I definitely wouldn’t buy another property.”