(1 week, 2 days ago)
General Committees
The Minister for Courts and Legal Services (Sarah Sackman)
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 (Harlow) (Lab/Co-op)
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
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.
(4 months, 4 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Sarah Sackman
The hon. Member can get hold of Hansard and read my previous answer, which is that there will be an impact assessment at the requisite moment.
Chris Vince (Harlow) (Lab/Co-op)
I find it heartbreaking to hear that there are victims of domestic violence, rape and sexual violence who feel that they are tackling a system that is absolutely broken. From a piece of casework I have dealt with, I can tell the House about a young lady, the victim of domestic violence, who had to wait so long for justice to be served that she actually returned to the perpetrator. To me, that is not only terrifying, but obviously it had a huge impact on her family. Can I ask the Minister, working with the Under-Secretary of State for Justice, my hon. Friend the Member for Pontypridd (Alex Davies-Jones), to promise me that she will do everything she possibly can to ensure that victims of domestic violence, sexual abuse and rape get the justice they deserve as soon as they can?
Sarah Sackman
I can give my hon. Friend the assurance that the Under-Secretary of State and I are working incredibly hard. This is central to our Government’s mission to halve violence against women and girls, and we have to look at how not just the delays in our criminal justice system but the processes in our courts are often retraumatising women and girls. We are resolute in our efforts to tackle exactly what he has described.
(7 months, 2 weeks ago)
Commons Chamber
Sarah Sackman
Sharia law forms no part of the law of England and Wales, but where people choose to put themselves before those councils—in common with Christian, Jewish and other courts of faith—that is part of religious tolerance which is an important British value.
Chris Vince (Harlow) (Lab/Co-op)
Will the Secretary of State join me in paying tribute to officers at Harlow police station? During recess, I went on a ride-along and saw their professionalism and dedication at first hand.
(9 months, 2 weeks ago)
Commons Chamber
The Minister of State, Ministry of Justice (Sarah Sackman)
I beg to move, That the Bill be now read a Second time.
The Property (Digital Assets etc) Bill is a pivotal step in the evolution of our legal system—one that ensures that the law remains relevant and pre-eminent in the digital age. As we set out in our plan for change, this Government are fully committed to providing investors and businesses with stability and certainty. This Bill will help to provide that certainty for people and businesses who own and transact with digital assets. This will help drive economic growth by encouraging innovation, attracting investment and reinforcing the UK’s position as a global hub for digital finances and technology.
Chris Vince (Harlow) (Lab/Co-op)
Does the Minister agree with me that although the Bill is small, it is very much mighty? It is important that we get the Bill on the statute book because we want this country to be ahead of the game on these issues.
Sarah Sackman
My hon. Friend is right. We want the UK to remain the pre-eminent jurisdiction of choice for legal services, as it currently is. This evolution of our law will enable it to remain a global hub for digital finance and tech. Overall it is a Bill that reflects our legal heritage, embraces technological innovation and prepares our nation for the future.
To appreciate the significance of the Bill, we must begin with the foundations of property law in England and Wales. For centuries, our legal system has categorised personal property as two distinct types: first, things in possession—tangible items that can be physically held or possessed, such as a book, jewellery or gold; and secondly, things in action—intangible rights that can only be claimed or enforced through legal action, such as debts, shares or contractual rights. These categories have served us well for hundreds of years, providing clarity in ownership and facilitating commerce. They have helped to create legal certainty in matters ranging from succession and insolvency to trust structures and collateral arrangements.
The digital revolution introduced a new class of assets—digital assets—that do not fit neatly into either of the traditional categories. As things stand, we look to 19th-century case law, which sets out that a thing can only be property if it fits into the two traditional categories of things in action and things in possession. The unique characteristics of digital assets, like crypto tokens, challenge the boundaries of these legal categories.
Unlike physical objects, digital assets cannot be held in one’s hand. Unlike debts or contractual rights, digital assets have an independent existence in the world that is not dependent on their recognition by a legal system. Yet certain digital assets possess the characteristics that the common law recognises as making them suitable to attract property rights. For example, certain digital assets, like crypto tokens, are rivalrous, meaning their use by one person prevents simultaneous use by others. By contrast to crypto tokens, some digital things, like Word documents, are not rivalrous and so are not recognised by the common law as being capable of attracting property rights. For example, if I were to send you, Madam Deputy Speaker, a Word document, I retain a copy, but if I transfer a crypto token, I no longer possess it. This is due to the underlying blockchain technology that ensures immutability, scarcity and non-duplicability—features that make certain digital assets capable of attracting personal property rights even if they are not a thing in possession or a thing in action.
Recent case law has begun to recognise that certain digital assets can attract personal property rights. However, these decisions have not come forward in precedent-setting courts, and thus the legal landscape remains uncertain. This ambiguity risks stifling innovation, as innovators are unsure what protections they have or whether they will be able to monetise their creation. It also puts off investors from investing in crypto tokens in favour of more traditional and predictable forms of investment. If we do not act, we risk our global competitors getting ahead and putting in place the kind of certainty in their own legal systems that will divert investment away from this country.
Recognising the urgency of this issue, in 2020, under the previous Government, the Ministry of Justice commissioned the Law Commission to review the legal framework surrounding crypto tokens and other digital assets. The commission’s 2023 report was unequivocal: certain digital assets should be recognised as capable of attracting property rights, and legislation was needed to reflect this. The Government have responded decisively. The Property (Digital Assets etc) Bill is the result—a concise yet powerful piece of legislation that affirms our commitment to legal clarity, economic growth and technological leadership.
The Bill contains a single operative clause. It recognises that a thing, including a thing that is digital or electronic, is not prevented from attracting personal property rights merely because it is not a thing in possession nor a thing in action. The Bill allows the courts to develop a further category of personal property through our common law.
Importantly, the Bill does not attempt to define which digital assets may qualify, nor does it prescribe the legal consequences of falling within this category. These matters are rightly left to the common law, which, with its flexibility and nuance, is best suited to assess each asset on its characteristics. This is in accordance with long-established common-law tests for property. This approach reflects the strength of our tradition. It capitalises on the adaptability and flexibility of the common law by empowering the courts to apply established legal tests to emerging technologies. This ensures that our legal system remains responsive, relevant and resilient.
We stand today at the intersection of law and innovation, where centuries of legal tradition meet the boundless potential of the digital age. The Bill is not just legal reform: it is an important step for our law and for the global digital economy, because digital assets are here to stay. From crypto tokens to voluntary carbon credits, these assets are reshaping how we transact, invest and interact—and yet, until now, our private law has struggled to keep pace. This Bill changes that.
First and foremost, the Bill provides legal certainty. It confirms that certain digital assets can be recognised as personal property. This is a fundamental shift. It means that individuals and businesses can now rely on clear legal rights and protections when dealing with things such as crypto tokens. That is because certain digital assets can now attract the same legal protection as other forms of property, which means that owners of things such as crypto tokens can enforce their rights if the asset is stolen. Whether it is theft, insolvency or inheritance, the law will now stand ready to protect those property rights.
By clarifying the legal status of digital assets, the Bill reduces ambiguity and streamlines litigation. That is because the courts will no longer have to spend time debating whether further categories exist or trying to force digital assets into the traditional categories. That clarity will save time, reduce costs and ensure fairer outcomes for all parties involved.
As I have said, the Bill also supports our ambition to be a centre of innovation and growth. It encourages fintech start-ups, scale-ups and global enterprises to choose English and Welsh or Northern Irish law for their transactions, knowing that these legal systems are equipped to handle the complexities of digital assets. The Bill thus unlocks practical economic benefits. It assists in allowing digital assets to be included in estates for inheritance and claimed by creditors in insolvency. These capabilities will fuel innovation, support new financial products and drive economic growth.
Crucially, the Bill does not attempt rigidly to define every type of digital asset. Instead, as I have said, it allows the common law to evolve, giving our courts the flexibility to adapt to technologies that have not yet even been imagined. That is one of the hallmarks of a progressive, forward-thinking legal system such as ours.
This Bill attracted significant cross-party support in the other place. For example, it was described by Lord Holmes as
“a short Bill, but one with significant impact for the UK, and indeed beyond our shores”.—[Official Report, House of Lords, 8 May 2025; Vol. 845, c. 1695.]
It was also described as a Bill that
“sends a signal to all those involved in digital assets”
that
“London and the United Kingdom is an excellent place”—[Official Report, House of Lords, 8 May 2025; Vol. 1696, c. 845.]
to do business.
In the same vein, Lord Sandhurst noted that the Bill was “small but perfectly formed” and that it will
“make an important contribution to the development of the law...and assist judges and litigants in ensuring that necessary protection is given to activities and things in the digital sphere...which might otherwise fail to be protected”.—[Official Report, House of Lords, 8 May 2025; Vol. 845, c. 1696.]
Those are not just words of praise: they are affirmations of the Bill’s importance, clarity and potential to shape the global legal and economic landscape. One noble Lord remarked on Third Reading that “the world is watching”, and rightly so.
We have a proud tradition of legal excellence and a thriving fintech ecosystem. With trillions of pounds in global economic activity expected to be transacted via digital assets by the end of the decade, we must ensure that our legal infrastructure is not only fit for purpose, but fit for the future. This Bill is a critical step in realising that potential.
Of course, the Bill underwent much scrutiny in the House of Lords, and two amendments were made to it. The first extended the territorial scope of the Bill to include Northern Ireland. We are glad that our laws can be aligned in this area and that the benefits of this Bill will be felt more widely. The second amendment was to the Bill’s long title. That was to ensure consistency between the title and the Bill’s operative clause. I am certain that we now have the best possible version of this Bill before us.
The Property (Digital Assets etc) Bill is a testament to the strength and adaptability of our legal tradition. It reflects our commitment to innovation, our respect for the rule of law and our ambition to lead on the global stage. It was described in the Lords as
“future facing, future-proofing, growth enabling ground-breaking and good for innovation, investment, citizen, consumer and the country”.—[Official Report, House of Lords, 30 April 2025; Vol. 845, c. 1297.]
I could not agree more. It is a Bill for the future—a future in which digital assets play a central role in our economy, our society and our lives. By passing this Bill, we are not only clarifying the law, but shaping that future. Let us seize this opportunity and send a clear message to the world that we are ready, willing and able to lead in the digital age.
(9 months, 3 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Sarah Sackman
The right hon. Lady has described how important the role of the magistrates courts will be and the importance of whole-system reform. The Government are not looking to tweak one aspect—to tweak what goes on in the magistrates court or the Crown court. One of the geniuses of the magistrates court is the local link and the fact that it delivers local justice, so we will look at that carefully, but there is no getting away from it: the scale of the problem, and what Sir Brian’s report tells us, means that we need whole-system reform of the criminal justice system, from beginning to end.
Chris Vince (Harlow) (Lab/Co-op)
I thank the Minister for her statement and for the recognition of the importance of magistrates courts. Sadly, Harlow magistrates court was closed by the previous Government—as was Chorley magistrates court, of course. I recently spoke to a police officer in my constituency who has been a police officer for three years. He is being asked to gather evidence to go to court for crimes committed before he was even a police officer. Is it any wonder that victims have lost confidence in the system? This Government need to ensure that we have fundamental reforms to this process to ensure that people in my constituency get the justice they deserve.
(11 months, 2 weeks ago)
Commons Chamber
Sarah Sackman
The hon. Gentleman will know that the cyber-security and resilience Bill will be introduced in this Session. The focus of that Bill is to improve the cyber-defences of this country by bolstering regulator support and the regulatory framework and setting out how our national security agencies can provide a strengthened and emboldened response to just such attacks. It seems to me that that Bill is the appropriate legislative vehicle for delivering what I think we all wish to see, which is a more robust defence of our cyber-systems.
Chris Vince (Harlow) (Lab/Co-op)
I thank the Minister for her statement. What shocks me most about this attack is that it is an attack on some of the most vulnerable people in our society. What can be done by residents in Harlow who are concerned that their data has been taken by these criminals, and how can they get legal aid if they need it?
Sarah Sackman
I thank my hon. Friend for that very important question. People can do two things: first, be in touch with their legal aid provider, because that will be the source of the data sharing and would have been the source of the application for legal aid. Secondly, if they are concerned that their data may have been affected, they can get in touch directly with the Legal Aid Agency. Legal aid providers have been informed of how those who need to apply for legal aid can continue to do so, because it is vital that we do not allow the justice system to grind to a halt and that those who need emergency legal aid can continue to access it. We have put in place business contingency plans to ensure that no one in this country, whether in Harlow or anywhere else, will be prevented from—or delayed in—accessing legal aid while we work to resolve this issue.