Recent changes introduced under the Renters’ Rights Act have raised concerns among landlords and letting agents regarding increased tribunal fees and ongoing court delays. Propertymark, a leading industry body, has highlighted the financial and procedural challenges landlords face when contesting council-imposed penalties and navigating an expanded tribunal system.

New Tribunal Fees Under the Renters’ Rights Act

The Renters’ Rights Act has introduced a tiered fee structure for the Property Chamber of the First-tier Tribunal, significantly affecting landlords. Notably, landlords will now face a combined £500 fee—comprising a £200 application fee and a £300 hearing fee—when appealing financial penalties imposed by local authorities. This represents a substantial cost for landlords seeking to challenge council civil penalties.

Tenants, by contrast, will pay a £47 fee when contesting rent increases through the tribunal. Additionally, new rent repayment order applications will incur fees of £114 for the application and £227 for the hearing, following the existing fee framework.

Expanded Tribunal Role and Implications for Letting Agents

The Act significantly broadens the tribunal’s remit within the private rented sector. Tenants can now challenge proposed rent increases, dispute the validity of rent increase notices, and request tenancy termination within the first six months if they believe the initial rent exceeds the open market rate.

Propertymark emphasises that letting agents must be vigilant in managing rent-setting evidence, market comparables, tenancy records, and notice procedures. Clear and well-documented reasoning behind rent increases will be crucial to mitigate disputes and withstand tribunal scrutiny.

Concerns Over Court Delays and Justice System Functionality

Alongside fee concerns, Propertymark has called on the government to address significant delays in the court system. Since the abolition of Section 21 eviction notices, landlords must rely on Section 8 grounds to regain possession, a process that has become increasingly protracted.

Data indicates the average time from claim to repossession has surged to over 68 weeks, compared to just over 20 weeks in 2019. Propertymark warns that a functioning justice system is vital for maintaining confidence in the private rented sector, especially amid high demand and constrained housing supply.

Government Position and Industry Response

The government asserts that the Renters’ Rights Act will reduce court demand by streamlining cases with clear, well-evidenced grounds, thereby improving efficiency and lowering overall caseloads. However, industry experts remain cautious, noting that the courts’ capacity to manage any increase in cases remains uncertain.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), commented: “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.”

He added: “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.”

What this means for landlords

Landlords should prepare for increased costs when contesting council penalties and anticipate more rigorous scrutiny of rent increases. The expanded tribunal powers mean that disputes may become more frequent, requiring meticulous record-keeping and evidence gathering.

Moreover, the extended timelines for possession claims could impact landlords’ ability to regain properties swiftly, potentially affecting rental income and portfolio management. Staying informed about tribunal procedures and court developments will be essential to navigate the evolving legal landscape effectively.

Source: Based on reporting from Property118

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