Those that are still available are at higher interest rates. The average rate for 75% loan-to-value BTL products has increased by 0.35% to 7.33% in the past year, and by 0.63% to 7.46% for 85% loan-to-value products, according to price comparison site moneysupermarket.

The increase in interest rates means that landlords will have to increase rents or cover the shortfall themselves. On a £100,000 interest-only mortgage, for example, the rent needed to cover the interest on the mortgage has increased from £569 to £622.

This hike is compounded by the fact that, on average, lenders now insist the rental income musty be 19% higher than the monthly mortgage repayments, up from 13% a year ago. This means that landlords will need to increase rents by 15% to keep up with these two changes.

"These are worrying times for tenants, landlords and developers. With the cost of living spiralling out of control, tenants are unlikely to be willing to wear increased rental demands, said Louise Cuming, head of mortgages at moneysupermarket.
 
"Those landlords wishing to remortgage buy to let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates. This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate. With property prices falling, though, there may well be many landlords having to sell their investment at a loss.

"And, all the while, developers suffer while the bottom falls out of the buy to let market."

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