A leading buy-to-let mortgage broker has warned ahead of the Autumn Statement tomorrow that any proposals to change landlords’ tax status could create uncertainty and threaten the private rental sector.

Intergenerational Foundation proposals that landlords should lose the tax relief they enjoy on buy-to-let mortgage repayments have sparked interest among politicians of several parties.

However, Mortgages for Business managing director David Whittaker said hints the Chancellor will consider this measure could open “a can of uncertainty”.

He said: “In terms of funding, buy-to-let mortgages are a commercial product, whatever the residential property used as security. Buy-to-let funding is also treated like a business transaction rather than as a consumer product.

“Any change would need to come with plenty of detail – and would represent a significant change of direction from recent attempts to encourage larger institutional landlords.”

Removing the tax relief could help to disperse any impending property bubble, but will also have a knock-on effect to the supply of privately rented accommodation, he added.

The Intergenerational Foundation argued last month landlords profit from “unfair” tax relief which includes an allowance for property maintenance as well as mortgage repayments.

Their report resulted in meetings with Conservative MPs, and the think-tank also contacted the Chancellor’s parliamentary private secretary, Rob Wilson.

Labour MPs have also shown interest in the suggestions, with former Treasury secretary and Housing Planning minister John Healey prepared to explore the idea further.

On Thursday, the Chancellor will outline his proposals for the housing market and other areas of the economy in the Autum Statement.

The Treasury was unable to comment on whether this included the buy-to-let market.