Ten years ago, the Finance Act 2015 introduced a provision that would send shockwaves through the rental market – one whose impact is really being felt today. That provision, Section 24, restricted finance cost relief for individual landlords, creating the conditions for the rental crisis we see unfolding before us.

Before Section 24, landlords were able to deduct all their finance costs, including mortgage interest, from their rental income when calculating tax liabilities, which is the standard practice for determining taxable income for any other business. But when this relief was removed, individual landlords found themselves having to pay tax on income, even when they were operating at a loss.

Low interest rates meant that the changes were not immediately felt, but a significant rise in rates has made the situation for many landlords untenable. This has resulted in a shrinking of supply and rising rents as many tenants enter into a brutal competition for fewer homes, seeing the average annual cost of renting rise by £3,000 over the past three years.

The reality is that policies like Section 24 have decimated the small landlord sector, so that today, only 59% of landlords are willing to re-let, while 31% are planning to reduce their portfolios, prompting calls from critics that immediate action is needed, with one simple fix: repeal Section 24 of the Finance Act and make renting properties more economically viable, which in turn will incentivise investment, increase supply, improving quality of homes and, eventually, stabilising rents.