Chancellor warned her 'brain dead' tax raids will clobber housing sector

CHANCELLOR Rachel Reeves has been warned she will deepen an acute housing crisis if her "brain-dead" tax raids force landlords to flee the market.

- David Williamson and Tony Whitfield

Experts fear any hikes making it less attractive for buy-to-let owners would be the "final nail in the coffin" for the rental sector.

They say the already ferocious competition for rental homes will get worse if tax rises in the looming Budget and new red tape spur yet more landlords to sell up.

With them struggling in a "truly toxic environment", the threat of higher taxes is seen as a "noose around their neck".

The Taxpayers' Alliance predicts the Budget will be a "horror show" and there are strong expectations that landlords will be hit with an increase in capital gains tax.

Average rents in England soared 8.5 per cent to £1,327 in the 12 months to August, and in some areas 50 people are chasing every available rental property.

Conservative leadership favourite and former housing minister Robert Jenrick urged the Chancellor to abandon her "war" on landlords. He said: "Labour's doom and gloom has already sent City investors fleeing and hurt our economic recovery.

"Now Reeves' plan to hike capital gains tax is seeing landlords head for the nearest exit.