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

Sarah Sackman Excerpts

Monday 27th April 2026 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.

--- Later in debate ---

[Sarah Sackman]

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

[Edward Argar]

I am happy to be written to.

[Sarah Sackman]

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.

[Dr Mullan]

Let us say that a landlord proposes to put someone’s rent up by £100 a month, and that it might take two months for the case to be heard in tribunal. They are therefore going to be £150 better off, even if they pay the £48 fee, if they wait for two months and the case goes to the point of a ruling. That is the criticism made by the Master of the Rolls. What is the counter-argument to that? Why would people not simply lodge an appeal knowing that they will make that money back and be in the black on the back of it?

[Sarah Sackman]

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]

I have been there; I sympathise.

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[Sarah Sackman]

Indeed. The other thing to say—this relates to both sets of questions—is that the new Renters’ Rights Act introduces a series of new rights that we want people to take advantage of. By the way, that is done not just in the purview of the tribunal system but in what some academics have called the shadow of the law.

The Act enhances people’s bargaining rights with their landlords when discussing and negotiating rent. It does not necessarily mean that a case will end up in tribunal, although it may, and the fees are not a barrier to that. That is important because when we introduce an extension of rights with such a policy, we have to wait to see precisely how it alters the behaviours and the societal relationships that we are looking to rebalance. The Act is a big extension of renters’ rights, and a greater equalisation between the rights of tenant and landlord.

The right hon. Gentleman is correct that we need to see how the demand coming into the chamber looks a year from now, and how the system is operating. Of course, we will need to keep that under review to ensure that the tribunal keeps up with demand. However, with the measures that we have introduced to anticipate the need for additional capacity, we are confident that we will be able to do so successfully. I will write to the right hon. Gentleman on the outstanding points that I have not been able to respond to, because I do not have the detail to hand, and I will ensure that he gets an answer on all of them.

In short, the draft order strikes the right balance between cost recovery and access to justice. It is a necessary step that strengthens the sustainability and fairness of the property chamber. As a consequence, I urge members of the Committee to vote in favour of the draft order.

Question put.