Rising taxes and falling house prices have dented landlords' confidence in the buy-to-let market, according to a survey.

The proportion of landlords who say they think it is a good time to invest in property has fallen to 42%, down from 48% during the first quarter of the year.
One in five landlords say they are planning to leave the sector completely, 6% more than during the first three months of the year.

If they sold their properties today they would have a capital gains tax bill of £39,793 if they were liable for the new 28% higher rate, compared with one of £25,581 under the old flat rate of 18%.

Even the landlord who owns one property has made an average gain of £75,111, leaving a tax bill of £18,203 if the property is sold, compared with an £11,702 bill before the Budget.

Confidence among landlords is still relatively high, with a third (32%) planning to expand their portfolios in the coming year.

Rising rents and house prices offered landlords bumper annual returns at the start of the year, and this was reflected in the surge in confidence. This has fallen slightly following the slowdown in house prices and the capital gains tax hike.

But the vast majority of landlords remain committed to buy-to-let. Attractive rents, just £12 per month shy of their peak, and increasing yields underpin their confidence in property investment