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

Full Debate: Read Full Debate
Department: Ministry of Justice
Monday 27th April 2026

(1 day, 9 hours ago)

General Committees
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Sarah Sackman Portrait The Minister for Courts and Legal Services (Sarah Sackman)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the draft First-tier Tribunal (Property Chamber) Fees (Amendment) Order 2026.

This instrument, which was laid before the House on 19 March, marks the first stage of a wider programme of reform to introduce a fairer, more consistent and more sustainable fees framework in the property chamber, supporting the significant reforms to the private rented sector implemented by the Renters’ Rights Act 2025. Through that Act, the Government have delivered landmark change: we will abolish section 21 no-fault evictions, strengthen the rights of tenants to challenge unreasonable rent increases, and enhance local authority enforcement powers. Taken together, those measures represent the biggest expansion of renters’ rights in a generation.

However, rights only matter, and are only meaningful, if people can enforce them. That depends on a tribunal system that is sufficiently resourced and is accessible for all. Currently, around 250 types of application can be brought to the property chamber, but only about half of them incur a fee. That is because they originate from various legislative provisions, some of which are not referenced in the current fees order. That has created an inconsistent system that neither reflects the cost of administering proceedings nor supports a fair and proportionate contribution from its users.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
- Hansard - -

The Minister is right that the fees are not proportionate, but they also sometimes do not meet the cost of the tribunal. Does she agree that that is one of the reasons why this legislation is so important?

Sarah Sackman Portrait Sarah Sackman
- Hansard - - - Excerpts

I was just coming to that. The cost of delivering the service that the property tribunal provides far exceeds the fees we are talking about today, and that cost is borne by the taxpayer. We think that it is right and fair that, provided that fees are set at a level that does not impede access to justice, we recover some of the cost of providing this essential service from the users of the court.

As I say, the current system has created a patchwork, inconsistent system that neither reflects the cost of administering proceedings nor supports a fair and proportionate contribution from all its users. The new framework will consist of a £47 application fee for applications to appeal a rent increase and to challenge terms of a successor tenancy, with no hearing fees applicable; fees of £114 for applications and £227 for hearings in cases where access to justice is paramount; and a standard fee of £200 to bring an application to the tribunal and £300 for hearings. Alongside this framework, fee exemptions apply for urgent issues such as seeking a remedial order for an unsafe residential building, as well as for potential low-value claims, including cases where tenants are recovering unlawful fees charged by their landlords.

The estimated cost to the taxpayer of an average case brought to the property chamber is more than £900. Even after this framework is fully implemented, the property chamber will continue to be heavily subsidised by the taxpayer. A standard application fee of up to £200 therefore represents an important but modest contribution, and illustrates our commitment to access to justice, which has been the guiding principle in developing the framework. The property chamber deals with a wide range of cases involving users with varying financial circumstances, so it is simply not possible for a single fee to accurately reflect every type of application. Instead, the work that we undertook reviewed every type of application individually to identify the types of users and barriers they may face when seeking to bring a case to the tribunal. That led us to introduce a tiered framework that best reflects the varied work of the property tribunal. The new framework will create consistency in the charging of fees for applications that can be brought to the property chamber, increase levels of cost recovery and reduce the burden on the taxpayer, all while maintaining our commitment to ensuring that access for justice is protected for all.

This instrument will introduce fees for applications in the residential property division of the property chamber that arise from, or are amended by, the Renters’ Rights Act. It is made under the powers provided by section 42(1)(a), section 42(2) and section 49(3) of the Tribunals, Courts and Enforcement Act 2007.

First, the Renters’ Rights Act 2025 will extend the right to apply to the property chamber to challenge a proposed rent increase to all private rented sector tenants. Tenants will also be able to apply to the property chamber within the first six months of a tenancy to request a termination if they believe that the starting rent is above the open market rent. The Renters’ Rights Act also includes the right of tenants to challenge the validity of a notice proposing a rent increase in the tribunal. Under the instrument, those applications will attract a £47 application fee and no hearing fees will apply.

Secondly, the Renters’ Rights Act introduces a new route to the tribunal to challenge the terms of a tenancy that arises on succession from a tenancy that was previously made under the Rent Act 1977. Under the instrument, those applications will also attract a fee of £47. If the application proceeds to a hearing, no hearing fee will apply.

Thirdly, the instrument applies our proposed standard £200 application fee and £300 hearing fee to appeals against the new financial penalties that local authorities can impose on landlords under the Renters’ Rights Act. It is reasonable and proportionate for landlords who choose to appeal to contribute to the cost of that process.

Finally, the instrument brings new rent repayment order routes, created by the Renters’ Rights Act, into the existing fees regime. Applications will incur a £114 application fee and a £227 hearing fee, matching the fees that already apply to comparable applications.

Turning to the impacts of the instrument, it is important to be clear about what it will mean in practice. As many of the measures in the instrument relate to the introduction of new or amended rights implemented by the Renters’ Rights Act, some users will be required to pay fees where none have previously been payable. That reflects the move, as I have said, towards a more consistent fees framework across the property chamber. Fees have been set at varying levels below cost to balance the principles of cost recovery with the principle of access to justice. It is important to note that, in the case of rent appeals, the balance between cost recovery and access to justice is more acute.

I reassure Members that the introduction of a fee for those cases has been carefully considered and calibrated. In those cases, the consequence of being unable to bring an appeal makes an applicant potentially more vulnerable to housing instability and economic hardship, especially as tenants are often in a vulnerable financial position, given cost of living pressures. Given those considerations, a considerably lower fee of £47 has been applied. The fee is one of the lowest payable across the courts and tribunals system, and ensures that tenants will not be deterred from exercising their right to appeal a rent increase by the fee.

In addition, there are other mitigations for rent appeals that ensure that fees do not deter or disadvantage tenants. The help with fees remission scheme will remain available to eligible applicants on lower incomes or in receipt of qualifying benefits who cannot afford to pay a fee. In the last year, we remitted £91 million pounds’ worth of fee income. Furthermore, under the Renters’ Rights Act, any rent increase will ordinarily take effect from the start of the first rent period following the date of the tribunal’s decision, rather than being backdated. In cases of undue hardship, the tribunal will be able to delay the date on which the rent increase takes effect by up to two months after the date of determination. That helps to ensure that tenants feel safe to challenge excessive proposed increases without fear of incurring additional financial pressures. Finally, where tenants are successful in appealing their rent increase, they may be able to recover the tribunal fee from their landlord in the end.

Without these measures, we would not be able to keep the tribunal service running, and the taxpayer would be required to shoulder a far greater proportion of the cost of the courts and tribunals systems. Thus, this instrument provides the necessary framework for a sustainable courts and tribunals system that is there for all those who need it while ensuring that access to justice is protected. I believe that the measures are fair and necessary, and I hope that the Committee will support them.