Buy-to-let landlords face cuts in the amount of tax relief they can claim on mortgage interest payments, the government has said.
The amount that landlords will be able to claim will be set at the basic rate of tax, which is currently 20%.
The move is aimed at creating a "level playing field" between homeowners and investors, chancellor George Osborne said.
The change will be introduced over four years from April 2017.
Currently property investors can claim tax relief on their monthly interest repayments at the top level of tax they pay, meaning the wealthiest can claim as much as 45%.
Mr Osborne said the current system gave buy-to-let landlords "a huge advantage in the market", compared with home buyers.
"The better-off the landlord, the more tax relief they get," he said.
Buy-to-let properties now account for over 15% of new mortgages, something the Bank of England warned last week could pose a risk to the UK's financial stability.
From an industry perspective, our Director Michael O'Connor said 'it's an unusual tactic to target landlords in this was when they provide a vital cog in the housing machine as the private rental sector is so heavily dependent upon them. This may lead to a dip in supply in the future as some landlords are likely to consider the additional costs that they will now incur due to the change in tax relief.'