First-tier Tribunal (Property Chamber) Fees (Amendment) Order 2026

Lord Sandhurst Excerpts

Monday 27th April 2026 Grand Committee

[Lord Fuller (Con)]

My Lords, for the first time we start to consider some of the practical effects of this controversial Act. I will make no comments on its merits; the Act has been passed, as was the will of Parliament, and now we have to deal with the consequences.

The schedule of fees here provides for the cost of enforcement of the judicial tribunal framework for the provision. We see a large expansion, consequent to the Act, of the number of things that can spawn a complaint. I am thinking particularly about the appeal for a rent increase. The lowest level, at £47, provides no disincentive to bringing a claim. In fact, a single month’s delay can pay for itself. I understand that it is important that we have open justice, but this is creating a perverse fiscal incentive to have a go, especially, as we heard just a few moments ago, as any rent increase that might happen following the appeal would not be backdated to the point at which the appeal was made.

Landlords are already waiting a year to gain possession, for example, in the case of non-payment of rent. It occurred to me to wonder whether the Government have made an assessment. What assessment has been made of the likely consequential number of cases and any additional timescale and further delay as a result of these fees passing into the regulations? Will we see an avalanche of claims that will gum up the tribunal system and give further incentives for claims to be made which provide an asymmetry between the rights of the landlord and the rights of the tenant?

[Lord Sandhurst (Con)]

My Lords, I am grateful to the Minister for introducing this order. It forms part of a wider programme of reform to the Property Chamber of the First-tier Tribunal following the passage of the Renters’ Rights Act 2025. We recognise the Government’s objective: to move towards a more sustainable system of cost recovery while maintaining access to justice. Where fees do not fully reflect the cost of the service provided, there must be a legitimate discussion as to how that gap should be addressed.

This instrument would introduce fees for new categories of cases, including financial penalty appeals and rent appeals. The decision to set the fee for rent increase appeals at £47, with no associated hearing fee, reflects concerns raised by stakeholders about affordability. While it is right that the Government have listened to those concerns and adjusted their approach accordingly, there must remain important questions about the broader context in which these changes are being made, not least the valid concerns raised by my noble friend Lord Fuller.

These reforms sit alongside significant changes to the private rented sector, including the abolition of Section 21. As has been raised previously from these Benches, there is a risk that reforms to tenants’ rights proceed ahead of necessary improvements to the capacity and efficiency of the courts and the tribunal system. There is a balance to be struck. While fees must not become a barrier to justice for tenants seeking to challenge rent increases or enforcement decisions, we on these Benches are concerned that the structure of the system could create unintended incentives; we have heard that from my noble friend Lord Fuller. For example, where an appeal delays the implementation of a rent increase, even where that appeal is ultimately unsuccessful, that may create uncertainty for landlords and have an adverse impact on the functioning of the market.

Further, while the Help with Fees scheme will remain in place, the Government have not produced a full impact assessment of these changes. Given that this is the first stage of a wider reform programme, the Committee would benefit from greater clarity on the cumulative impact of these measures, particularly on access to justice for lower-income applicants and how that is to be balanced.

We do not oppose the principle of these changes. A fair and sustainable tribunal system is in the interests of all parties. However, it is essential that, as the Government proceed with the later stages of reform, they do so in a way that carefully balances cost recovery with genuine access to justice and does not build in unreasonable deterrents for landlords. The Government must ensure that the system is properly resourced to deal with the demands being placed upon it. I look forward to the Minister’s response to these points.

[Baroness Levitt (Lab)]

My Lords, I thank the noble Lords, Lord Sandhurst and Lord Fuller, for their helpful and constructive contributions. A point that they both made, with which I agree, is that this is always a balancing exercise. As I made clear in my opening remarks, there is no question of trying to recoup the entirety of the cost of running the system. This is merely about seeking a contribution because it is right to do so.

The setting of the lowest level of fee, particularly in relation to rent increases, was not intended to try to dampen demand; rather, it is a small contribution designed to be fixed at a level that does not hamper access to justice. I remind noble Lords that some of those who are subject to rent increases are some of our most vulnerable citizens. While £47 may seem a modest amount to us, to some people it can seem an almost insuperable burden, which is why I have sought to reassure that there is help there for those who cannot afford it at all.

In relation to the point made by the noble Lord, Lord Fuller, about the amount of demand, I hope to be able to reassure him by saying that we are ready for Friday. Friday is when all of this will begin. We have a centralised operational hub and have recruited extra staff, which is why we are bringing in all these reforms in tranches, to ensure that the system is not overwhelmed.

This draft instrument is a necessary step that strengthens the sustainability and fairness of the Property Chamber. It delivers, as I said, the first phase of the new fees framework. It is one that strengthens fairness and consistency, supports greater levels of cost recovery and protects access to justice. Our reforms ensure that users of the Property Chamber contribute to its cost where they can afford to do so, while ensuring that vulnerable renters are able to benefit from the protections contained in the Renters’ Rights Act.