The buy to let market will keep its place in the spotlight next year as George Osborne adds another 3% in tax on buying second homes from April.

The larger stamp duty levy and changes to tax relief on buy to let mortgages – due to start from April 2017 – are intended to “level the playing field” between investors and homeowners, though it is likely to have unintended consequences.

The average purchase value of a buy to let property currently stands at £220,726.

With an additional 3% increase in stamp duty, this would represent an additional upfront cost of £6,622.

I think it would be fair to assume that landlords will look to recoup these increased costs through rent increases.

"This will do little to help tenants save for a deposit on a home of their own, with increased rents leaving little left..." - Andy Golding, Kent Reliance

If a landlord did pass on the increase (while holding the property for 10 years), it would represent an increase of £55 per month. Ultimately, this will do little to help tenants save for a deposit on a home of their own, with increased rents leaving little left for that all important deposit.

The Chancellor has looked to counter this through an extension of the Help to Buy scheme into 2021 and will lend up to 40% of the value of a new property in London.

Ultimately though, there are not enough homes being built within the UK, meaning supply constraints will likely continue to underpin house prices and limit home ownership.

Despite the new building initiative, government spending is unlikely to build the necessary social housing to meet the country’s growing needs.

It also means the private sector will have to go some distance to build anywhere near the number of homes to match population growth for those lucky enough to benefit from the Government’s Help to Buy Scheme.

Tinkering with the cost of lending by subsidising first time buyers or penalising landlords is not the way to make housing more affordable, nor does it cater for those who need social housing or lower rental property.

It leaves higher rent for those who would probably never be able to afford the deposit of a new home.