According to an online letting agency landlords are now more than likely having to face an extended void period between tenancies, as on average two out of every three applicants are deemed as unsuitable.

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Since the Tenants Fees Act was introduced the agency has seen just over two thirds (67%) of tenant applications being turned down.

The major reasons why the number of application refusals is so high is because tenants are unable to afford the property, failing to disclose a previous bankruptcy or a County Court Judgement against them.

Alexander Morris, the managing director of the agency, believes that because of the extended void periods landlords will have to increase rents to make up their losses.

She said: “What was intended to offer a fairer solution to tenants is seemingly leading to an increase in individuals trying their luck when it comes to applying for a rental property. The investment and risk once associated with applying for rental property have been completely removed, meaning many landlords are now left with rising costs and the prospect of empty properties for longer.

“The housing market in general needs an overhaul, but with the Tenant Fees Act now in place, it’s clear the referencing process is also an area which needs to be revamped. We need to learn from the processes used in online banking and create a tech solution which allows landlords and letting agents to conduct an instant financial check, which looks at a prospective tenant’s income as well as their past rental payments.”

Morris is a fierce critic of the proposed banning of Section 21 and has warned the government that this will result in many landlords selling up and leaving the private rented sector.

Morris added: “While we support the government in making the private rental sector fairer for all, many of the new laws favour tenants over landlords. The government risks landlords leaving the market altogether as a result of the increased costs. This would then lead to a lack of supply, and the knock-on effect of rising rents as a result of the increase in demand for rental properties.