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

Considered in Grand Committee

Moved by

That the Grand Committee do consider the First-tier Tribunal (Property Chamber) Fees (Amendment) Order 20206

My Lords, this instrument introduces fees for applications in the residential property division of the Property Chamber that arise from, or are amended by, the Renters’ Rights Act 2025. It is made under the powers provided by Section 42(1)(a) and 42(2) and Section 49(3) of the Tribunals, Courts and Enforcement Act 2007. It marks the first stage of a wider programme of reform which will introduce a fairer and more sustainable fees framework in the Property Chamber, supporting the significant reforms to the private rented sector brought by the Renters’ Rights Act 2025.

Through that Act, the Government have delivered landmark changes which represent the biggest expansion of rights for renters in a generation. But rights matter only if people can enforce them, and this depends on a sufficiently resourced tribunal that is accessible for all. At present, only half of the application types brought to the Property Chamber incur a fee. This has created an unfair system that neither reflects the cost of proceedings nor supports a proportionate contribution from users, and it has resulted in inconsistencies whereby some users have to pay to access the service where others do not. The Government are therefore introducing a new tiered fees framework.

In summary, once introduced, it will consist of three levels. The first is a standard fee of £200 for applications to the tribunal, together with a hearing fee of £300. Secondly, where there are concerns about access to justice issues, there will be a lower level—an application fee of £114 and a fee of £227 for hearings. There is a final third tier for those cases with the most acute need to preserve access to justice, such as applications to appeal a rent increase. In these cases, there will be a modest application fee of £47, but there will be no hearing fee. Exemptions will continue to apply for urgent building safety issues and low-value claims.

The average cost to the taxpayer of a case brought to the Property Chamber is more than £900. Therefore, the fees in this framework represent a modest contribution to running costs and illustrate a commitment to maintaining access to justice. I will now describe in a little more detail how the regime will work.

First, the Renters’ Rights Act will extend the right to apply to the Property Chamber to request a determination of rent to all private rented sector tenants. Tenants can make such a request upon notice of an annual rent increase, or within the first six months of a tenancy, if they believe that the proposed rent is above the open market rent. The Act includes the tenants’ rights to challenge the validity of a notice proposing a rent increase. As I have just said, under the new regime these applications will attract a £47 application fee but will be exempt from hearing fees.

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 this new regime, these applications will cost £47 but will be exempt from a hearing fee.

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?

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.

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.

I would like to press the Minister just a little harder. While I know she is ready for 1 May, which is in five days’ time, is she able to give us an assessment of what she thinks is the best estimate, either by percentage or the number of cases, of what might be spawned as a result of the fees and charges that are laid out before us? I am asking for a number, so at least we can benchmark success in the months and years to come and see whether we are better or worse than intended. That would help us scope what the resources of the tribunal system may need to be in future.

My Lords, no full impact assessment was done in relation to this because it does not reach the required threshold for one. However, some assessments have been made, including looking at 250 types of applications to see whereabouts to fix the fees to try to make the greatest contribution while balancing it with access to justice. The best I can do is offer to write to the noble Lord and provide such figures as we have.

Motion agreed.