The cut in UK tax breaks for certain buy to let landlords due to be phased in over the next few years could put one in five out of business, according to research landlord law firm Access Legal.

The blow comes at a time when £9.9bn is lost to rent arrears and damage every year and for some the change in tax could be the final straw. Landlords are also losing £4.5bn in terms of damage to their properties, added the law firm.

The research cites extortionate upkeep costs, cuts to tax breaks and around 46% of tenants getting away with not paying their rent arrears, even after court proceedings, as the main reasons for the pessimism.

Three quarters of buy to let investors also stated that they don’t feel money is safe with letting agents, and 43% of landlords have dropped their letting agents to save money and avoid safety issues.

The research says that damage, repairs and rent arrears cost landlords around £9.9bn every year. The five most common causes of damage to a property are broken appliances at 41%, damaged decorating at 40%, damaged carpets 37%, lack of cleanliness 33% and cigarette burns 22%.

Worst areas in the UK for rent arrears include Cambridge, Newcastle, Oxford, York and Manchester while the worst areas in the UK for property damage include Manchester, London, Wrexham, Chelmsford and Birmingham.

The study also found that 40% of landlords have been subject to a tenant not paying rent and 20% of landlords have been subject to vandalism in their properties.