The lender’s buy-to-let report found that the value of PRS had increased by 6.4% (or £82.6bn) on last year’s value. 

The report attributed rising house prices as being the key driver for this rise, with the average rental property climbing in value by 4.2% in the last year. 

However, while there were nearly 5.6 million households in Great Britain in the private rented sector, this is just 2.2% more than a year ago, less than a third of the rate of increase experienced in 2014. 

Landlord confidence remains fragile, with just 41% being confident about the prospects of their portfolios. 

This is higher than the record low reached in the second quarter of 2017 but remains far lower than in recent years.

“Landlords are swallowing the unpleasant cocktail of higher taxation and tighter regulation, and this is undermining the expansion of the private rented sector,” said Andy Golding, chief executive of OneSavings bank, which trades under the Kent Reliance and InterBay brands in buy-to-let.

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“A fundamental shift in the landlord population is now underway, as buy-to-let moves from being a popular past-time for hundreds of thousands of British amateur landlords, to the preserve of committed long-term investors with experience and expertise.”

Andy didn’t see the creation of a more professional sector as a bad thing, but felt there was a limit to the amount of change the sector could absorb before seeing a damaging reduction in supply.

“Landlords’ confidence is better, but still clearly fragile, and as the new tax reforms gradually come into force, any further financial burdens may prove to be a tipping point. 

“The need for a strong and stable PRS has not changed, notwithstanding the government’s housing announcements in the budget. 

“The removal of stamp duty for 95% of first-time buyers should provide some help for those with savings, but it will also bolster house prices – the same side-effect Help to Buy is having. 

“The housing market is significantly more complex than can be solved with some demand-side stimulus.  

“The PRS fulfils a vital role in our society and our economy, a role that needs to be reflected in an evolved housing policy.”