But Mrs Paterson believes increasing stamp duty will be worse for landlords than a capital gains rise.
She says: “Out of the two, I think the rise in stamp duty is more of a heavy hammer to people buying second homes. I’d thought about expanding and would like to, as there is something so positive about providing nice homes for nice families, but now I won’t.”
Lee Williams, of mortgage broker Saffron for Intermediaries, says: “For landlords with smaller portfolios, buy-to-let is starting to feel less worthwhile.
“In a housing ecosystem already strained with rental availability (currently a fifth lower than the pre-pandemic level), this stamp duty increase could squeeze out non-professional landlords, reducing the supply of rental homes and in turn, driving up average rents.”
Andrew McGarrick, a landlord in Leicester, says the tax raid will “severely dent investment” and stall the market.
He has 24 properties and, like countless other landlords, originally invested as a way to save for his retirement.