Buy-to-let lending has fallen by a fifth over the past year as taxes on second homes, the removal of interest relief and tougher standards for lenders drained credit from the market.
Lenders issued 5,500 buy-to-let mortgages for new purchases in March, a drop of 19.1% on a year earlier, according to UK Finance, the umbrella organisation for banks and building societies.
The value of loans fell by 20% to £800m.
