Agents warned about new fees triggered by Renters Rights Act

Agents warned about new fees triggered by Renters Rights Act


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Propertymark is warning that letting agents in England should be aware of a new tiered fee framework for the Property Chamber of the First-tier Tribunal.

This has been introduced to support the Renters Rights Act in a bid to create a more consistent tribunal framework.

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Only half of the Property Chamber’s property-related applications currently attract a fee, but the new framework introduces different fee levels depending on the type of application.

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Applications to appeal a rent increase will attract a £47 application fee, with no hearing fee. 

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This lower fee is intended to protect access to justice for tenants who may be facing housing instability or financial pressure.

A standard fee of £200 to bring an application and £300 for a hearing will apply to appeals against new financial penalties that local authorities can impose on landlords under the Renters Rights Act. 

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New rent repayment order routes created by the Act will be brought into the existing fee regime, with a £114 application fee and a £227 hearing fee.

The government says the typical Property Chamber case costs the taxpayer over £900, so proceedings will continue to be heavily subsidised.

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The Act, which came into force less than two weeks ago, expands the role of the tribunal. 

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.

Propertymark says that 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” the trade body suggests.

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