An industry body has warned that hefty tribunal fees must not detract from wider court reform as the Renters’ Rights Act comes into force.
Propertymark has told letting agents and landlords about a new tiered fee framework for the Property Chamber of the First-tier Tribunal, introduced under the Renters’ Rights Act which will see landlords being thumped with a £500 bill to contest a council’s civil penalty.
The warning comes as the government claims its reforms will reduce possession cases reaching the courts.
Renters’ Rights Act significantly expands the role of the Tribunal
The government has announced a £47 fee for tenants challenging a rent increase through the first-tier property tribunal.
However, a £200 application fee and £300 hearing fee will apply for landlords appealing new financial penalties that local authorities can impose under the Renters’ Rights Act. New rent repayment order routes introduced by the act will also fall under the existing fee structure, with a £114 application fee and a £227 hearing fee.
Propertymark writes on its website that letting agents need to be aware of the changes.
The industry body said: “The Renters’ Rights Act significantly expands the role of the tribunal in the private rented sector. Tenants will be able to challenge proposed rent increases, challenge the validity of rent increase notices, and, within the first six months of a tenancy, ask the tribunal to terminate a tenancy if they believe the starting rent is above the open market rent.
“For letting agents, this means rent-setting evidence, market comparables, tenancy records and notice processes will become even more important. Agents should ensure landlords understand that rent increases may face closer scrutiny and that clear, well-documented reasoning will help reduce disputes.”
Functioning justice systems underpins the whole PRS
Propertymark is also calling on the government to address court delays, as under the Renters’ Rights Act, landlords will rely on Section 8 grounds following the abolition of Section 21.
According to the industry body, the average time from claim to repossession has risen to more than 68 weeks, compared with just over 20 weeks in 2019.
The industry body said: “A functioning justice system underpins the whole private rented sector. If landlords cannot regain possession when they have a legitimate reason to do so, confidence in the sector falls.
“That risk is especially acute at a time when demand for rented homes remains high, and supply is under pressure.”
The government claims the Renters’ Rights Act will reduce court demand, arguing that cases with clear, well-evidenced grounds will proceed more efficiently and overall caseloads should fall.
However, industry experts have warned that time will tell whether the courts can cope with any influx of cases.
Ben Beadle, chief executive of the National Residential Landlords Association, said on the NRLA website: “The housing minister, Matthew Pennycook, has stressed more than once that landlords will still be able to regain their properties quickly when necessary and that the courts can cope. Time will tell.
“In the meantime, it is essential we and the government actively monitor implementation and consider litigation and the impact of case law as parts of the Act are tested in court.”
As previously reported by Property118, in a letter to the Justice Select Committee, the NRLA warned that the government has not provided clarity on how the courts will be prepared for the digital possession process.
