Numerous North East buy-to-let landlords are selling their property portfolios due to profitability challenges.

Karen Whiting is an associate director for Durham-based Azets.

She said: "With higher mortgage rates, and the associated cost of servicing debt at a 16-year high, they’ve had enough and are getting out of the market."

“We are advising a higher-than-normal number of BTL landlords who are selling their entire portfolios, typically comprising four to nine properties.

Ms Whiting commented that the numbers are no longer making sense for landlords unless they significantly raise rents, something many are reluctant to do due to local affordability limitations.

This situation is compounded by the North East having the UK's lowest monthly rents, at £550, compared to England's £850 average.

According to Ms Whiting, landlords have also felt the impact of various government policy changes over the past 14 years, such as a rise in stamp duty for second properties and stricter borrowing criteria.

Latest data from Rightmove shows UK private rents have reached record highs.

A typical monthly rent in London peaked at £2,633, an annual increase of 5.3 per cent.

But exiting this sector is not without potential pitfalls.

"BTL landlords need to personally file a capital gains tax return to HMRC within 60 days of property disposal or face tax fines," Ms Whiting said.

"It is not something that can be delegated to agents because landlords must have their own gateway account."

HMRC could collect up to £150,000 if a landlord with property disposals totalling £3 million fails to submit this form in time.