The majority of private landlords will be affected by a rise in buy-to-let interest rates, according to a survey by the National Landlords Association (NLA).

The reappearance of several major finance providers, coupled with high demand for rental properties, has encouraged landlords to increase their buy-to-let property portfolios in recent months.

The survey showed that a buy-to-let interest rate rise of 2% would have a negative impact on 89% of landlords, with 53% concluding that the effect would be significant.

A further 8% could be forced to re-evaluate their future as a landlord, with 6% having to reduce their portfolios or leave the private-rented sector completely.

An interest rate rise of just 1% on this type of mortgage would have a negative impact on 80% of landlords, with 29% stating that such an increase would have a significant impact on their lettings business.

73% of landlords surveyed have at least one mortgage, and of those 47% have at least five buy-to let mortgages held against their property portfolio.

49% of landlords strongly agree that the market would further benefit from more buy-to-let lenders and greater competition.

David Salusbury, NLA chairman, said: “These statistics show how important it is for a landlord expanding their portfolio to construct a sound long-term business plan when considering buy-to-let properties.