The National Residential Landlords Association (NRLA) has called on the government to intervene before a combination of rising borrowing costs and new tax rises pushes rents up too high.
It warns that landlords are being squeezed as buy to let mortgage costs soar to their highest in more than a year.
According to Moneyfactscompare.co.uk, anyone taking out a mortgage now faces paying an average of £1,100 more per year than they would have at the start of March.
The average two-year fixed rate is now 5.40%, its highest since February 2025, while the typical five-year deal now stands at 5.91%, a level not seen since January 2024.
Government must help landlords
Ben Beadle, the chief executive of the NRLA, said: "Whilst the government cannot be held responsible for the impact of the conflict in the Middle East, it should take action where its own policies will lead to higher rents.
"Growing taxes, uncertain costs associated with the Renters' Rights Act and the ongoing housing benefit freeze will create the perfect storm for tenants.
"With so many people reliant on the sector for a place to call home, ministers need to recognise the real-world consequences of their decisions."
He added: "It is simply stereotyped nonsense that every landlord can somehow absorb ever-increasing costs indefinitely.
"They can't, and as a result, it is tenants who will suffer most as rents continue to creep up.
"The government needs to take action to support renters and ensure a healthy, vibrant market."
Tax rises and frozen benefits
A planned rise in income tax on rental income, due next year, has already drawn a warning from the independent Office for Budget Responsibility that it will push rents higher.
At the same time, landlords remain uncertain about what it will cost them to join the new Private Rented Sector Ombudsman and database under the Renters' Rights Act.
Energy efficiency requirements are expected to add up to £10,000 per property to upgrade costs, and housing benefit rates, which many low-income tenants depend on, remain frozen.
That’s despite the average rental income of £19,400 declared by unincorporated landlords, which is below the full-time minimum wage, HM Revenue and Customs data reveals.
Rising costs will hit landlords
Moneyfactscompare says that Middle East turbulence has fed through to mortgage markets, with product availability dropping dramatically while rates rise.
The number of BTL deals across both fixed and variable rates has fallen by roughly 1,300 since early March, it warns.
Rachel Springall, a finance expert at the financial comparison site, said: "Soaring borrowing costs will cause pain to landlords this year, as they join millions of consumers facing higher mortgage repayments.
"This is terrible news, as rising costs could lead to higher rental payments for tenants, or a drop in the pool of properties available for rent if landlords decide enough is enough and sell off their portfolio."
NRLA's four-point call
Now the NRLA is urging the government to create a concrete plan to ease the cost pressures facing landlords.
That plan, the association says, should include scrapping the upcoming income tax rise on rental income and keeping the Ombudsman and database joining costs as low as possible.
It also wants to see tax incentives to better support landlords investing in energy efficiency improvements.
Unfreezing housing benefit rates, to protect low-income tenants from further hardship, is also on the list.
Student landlord rising costs
The managing director of Accommodation for Students, Simon Thompson, said: "Student landlords are not insulated from the wider buy to let mortgage squeeze.
"Where student properties require energy efficiency upgrades to meet tighter EPC standards, the projected cost of up to £10,000 per property applies just as it does to mainstream rentals."
He added: "And there's still the Renters' Rights Act and its many compliance obligations and associated fees which are still unconfirmed.
"That means student landlords face the same planning uncertainty as the wider market and the NRLA's call is to be welcomed."
