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

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Department: Ministry of Justice
Monday 27th April 2026

(1 day, 9 hours ago)

General Committees
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Edward Argar Portrait Edward Argar (Melton and Syston) (Con)
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I echo the comments made by my hon. Friend the shadow Minister about the broader context. The Minister rightly highlighted the broader context of the Renters’ Rights Act, the reforms it introduces and the implications they have for the sector. She also quite rightly highlighted that rights matter only where they are enforceable. Given that context, I have a few questions and points of clarification that I hope the Minister can help me with.

I will confine my remarks to the property chamber, which is one of seven chambers at first-tier tribunal level. The Minister gave the example of having a £900 cost versus a £200 fee for a case, and the significant public subsidy that goes into the system, even with the fee changes. Will she set out the overall cost per annum—the cost with regard to the resource departmental expenditure limit—of Government administration of the property chamber?

Picking up on a point highlighted by my hon. Friend the shadow Minister, what assessment have the Government made of the increased demand for property chamber services in the context of the changes in the Renters’ Rights Act? How many additional staff may be needed in that chamber to avoid any lengthening of case wait times, for a listing or similar? In essence, how many additional cases annually do the Government anticipate will come forward as a result of the Act?

Again, the Minister was absolutely right that the challenge is to balance cost recovery and access to justice. What formula or process was used to calculate the numbers for these fees? She said that cases are effectively still subsidised by the taxpayer, but what was the calculation that said that £47 or £200, for example, was the right fee? What went into coming up with that, and discounting it in the way that she has?

Paragraph 5.16 of the explanatory memorandum states that

“the rent appeal right is substantially different to what existed before, and so our confidence on the effect of a fee on people’s behaviour is lower than normal.”

That is understandable, but how do the Government propose to measure—once the fees have been operating for, say, a year—the effect on people’s behaviour? What data will be collected, as a baseline, to measure whether people are using the tribunal service, and why they are or are not using it—that is, both the quantitative and qualitative data?

Finally, paragraph 10.1 of the explanatory memorandum states:

“The underlying costs of activities for which fees are charged will be reviewed on a yearly basis”.

Will that annual review of the fees come to this House, or will it be an internal process in HMCTS or the Ministry of Justice that comes to this House, with an order, only if something is identified as having diverged?

Sarah Sackman Portrait Sarah Sackman
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I will endeavour to answer as many of the right hon. Gentleman’s questions as possible. Any that I do not answer—

Edward Argar Portrait Edward Argar
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I am happy to be written to.

Sarah Sackman Portrait Sarah Sackman
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That was exactly what I was going to suggest: I shall write to the right hon. Gentleman. I will write to him on his first question, which was about RDEL and the exact running costs of the property chamber.

We expect an increase in the volume of receipts that the property chamber will take, and some work is being done internally as to what that might look like. As the right hon. Gentleman would expect, this is an expansion of rights, and as I have said, we have set the fees not to impede the enforcement of those rights but to enable it, while achieving a measure of cost recovery. We want to reduce conflict in our society, but we do not shy away from the fact that the thrust of the policy behind the Renters’ Rights Act is that we welcome people enforcing their rights where rents that are set far outstrip what can be considered reasonable. That is why we have deliberately empowered people by giving them rights that can be enforced.

The hon. Member for Bexhill and Battle made a point about the tribunal’s readiness. In anticipating additional pressures on the tribunal, we have been undertaking steps to increase capacity within it. Those have included the recruitment of additional administrative staff and the establishment of a centralised operating hub. We are also working with the Ministry of Housing, Communities and Local Government to develop a new digital system for rent appeals in the property tribunal, to maintain the efficiency of that. The fees, along with the Ministry of Justice’s operating budgets, will support that capacity, so that those who rely on the chamber, be they tenants or landlords, can expect the capacity of the tribunal to keep up with the demand.

Sarah Sackman Portrait Sarah Sackman
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I am familiar with the argument raised by the Master of the Rolls; we discussed it during the passage of the Renters’ Rights Act, and I have discussed it with the relevant Minister. That is the subject of a whole series of policy choices that have been made to strike an appropriate balance between the rights of tenants and landlords.

We do not expect that measure to be abused, and there are equities that go the other way. If someone backdates a payment, they will then be forced to pay arrears and additionality in one big lump sum, which can also create unfairness. That is the result of a policy choice that has been made in the Act, although it may be one that the Opposition take issue with. This is now all about ensuring that a tribunal is ready to receive any ensuing rent appeals as soon as possible after the order comes into force on 1 May—it is very exciting.

I did jot down the right hon. Gentleman’s further question, but I am now struggling to read my handwriting, because we are at that point in the day.

Edward Argar Portrait Edward Argar
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I have been there; I sympathise.