Property investors will face tough new mortgage affordability tests from next year which will herald the "beginning of the end of the middle-class buy-to-let dream", experts have warned.

Philip Hammond, the Chancellor, announced additional rules on buy-to-let which will result in ordinary investors being able to borrow far less towards their purchase.

Mr Hammond indicated he was concerned about "financial stability" following a boom in residential property investment as savers desperately try to find profitable places to put their money.