The UK is facing a shortfall of 1.8m rental properties unless the government acts fast to slow a sharp drop in the number of available homes, according to a leading housing industry body.

The Royal Institution of Chartered Surveyors (Rics) called on the government to drop reverse stamp duty changes on second homes and consider incentives for build-to-rent schemes, after it found a drop in property investors’ appetite to add to their buy-to-let portfolios.