It is believed that the tax changes coming into effect on 6 April will provide key evidence on just how sensitive property investors are to changes in the economic and fiscal environment.
So far, the buy-to-let market has weathered the current storm relatively well with investors capitalising on falling property prices and the stability afforded by a strong portfolio when it comes to securing finance for further such investments.
Fitch believes that the lower rate of CGT will test investors' resolve when it comes to retaining their existing properties, tempting many to sell in order to benefit from past capital appreciation.
Stuart Jennings, group credit officer for EMEA structured finance at Fitch said: "With expectation of further house price decline in the coming months, the capital growth incentive for buy-to-let investment has faded.
"Data on recent buy-to-let investor behaviour shows an increasing number 'marking time'. This may change when the new tax treatment effectively makes it cheaper to sell.
Atanasios Mitropoulos, director in Fitch's research team added: "The private rental sector may stabilise the property market during a benign environment. However, the dynamics are different during a downturn as not only the affordability of home owners is suffering but also that of tenants.
"The argument that those who cannot afford to buy will support the demand for rental accommodation does not necessarily help buy-to-let investors as tenants' ability to pay may not generate sufficient rent to service the mortgage."
