The Parliamentary Under-Secretary of State, Ministry of Justice (Baroness Levitt) (Lab)

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. Thirdly, this instrument applies the proposed new 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. Finally, this instrument brings new rent repayment order routes created by the Renters’ Rights Act into the existing fees structure and applies a £114 application fee and £227 hearing fee, to match comparable applications. I shall briefly outline the impact of this instrument and what it will mean in practice. As many of the measures in this instrument stem from new or amended rights introduced by the Act, some users will be required to pay fees where none have previously been payable. This reflects the move towards a fees framework that more consistently reflects the cost of proceedings and asks for a proportionate contribution from users. In the case of rent appeals, as I have already said, the need to protect access to justice is more acute. I wish to reassure your Lordships that the introduction of a fee for these cases has been carefully considered. In such cases, the consequences of being unable to bring an appeal makes an applicant more vulnerable to housing instability and economic hardship, and therefore a considerably lower fee of £47 has been applied. In addition, there are mitigations that further ensure that fees do not deter tenants seeking to challenge a rent increase. The Help with Fees remissions scheme will remain available to eligible applicants who cannot afford to pay a fee. Under the Act, any rent increase will take effect from the first rent period following the tribunal’s decision to approve any increase and will not be backdated. The tribunal will not be able to increase rent above the level proposed by the landlord. In cases of undue hardship, the tribunal will be able to delay the rent increase by up to two months. These measures ensure that tenants feel safe to challenge proposed increases without fear of 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. Without these measures, the taxpayer would be required to shoulder a greater proportion of the costs of the system. This instrument provides the necessary framework for a sustainable courts and tribunals system that is fair and accessible for all those who need it. I beg to move.