In the report, ‘Responsible Regulation’, the property investor trade body has argued that irresponsible lending has damaged the housing sector’s reputation and has affected the ability of banks to lend. As a result, professional landlords cannot expand their portfolios.

The body has also called for tenants in repossessed properties to be given a minimum of two months to secure alternative accommodation.

Property investment clubs should be regulated for providing advice becasue many clubs are important influences in attracting people to invest in property, the BPF said.

Ian Fletcher, director of policy at the BPF, said many lenders threw money at buy-to-let borrowers during the boom without sufficient checks on borrowers.

He added: “Consumers have suffered as their buy-to-let dream turned sour and many buy-to-let lenders were at the root of our economic problems as organisations such as Bradford and Bingley found themselves over exposed to bad loans.”

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Mark Harris, director at Savills Private Finance, said repossessions may increase as suitable finance is unavailable to landlords.

He added: “It is vital therefore that measures are in place to ensure the private rental market can continue to expand. Better regulation is therefore needed if we are to move from an age of recklessness into a period of responsibility. “