The Tribunal Procedure (First-tier Tribunal) (Property Chamber) (Amendment No. 2) Rules 2026
- Department: Ministry of Justice
- Made under: Courts and Enforcement Act 2007
Authorized the First-tier Tribunal to make orders for costs in business tenancy proceedings under the Landlord and Tenant Act 1954.
This instrument extends the cost-awarding powers of the Property Chamber of the First-tier Tribunal to include cases involving business security of tenure.
It directs that the Tribunal may now order a party to pay the costs of another in proceedings brought under Part 2 of the Landlord and Tenant Act 1954.
These rules primarily affect commercial landlords and tenants involved in disputes regarding the renewal or termination of business tenancies that fall under the Tribunal's jurisdiction.
Arguments For
The instrument ensures that the First-tier Tribunal has the necessary procedural framework to manage its new jurisdiction over business tenancy disputes.
Proponents state that allowing the Tribunal to make orders for costs in these specific proceedings aligns the Property Chamber's powers with its expanded responsibilities under the Landlord and Tenant Act 1954.
The document indicates that no significant impact on the private, voluntary, or public sector is foreseen, justifying the absence of a full impact assessment.
Arguments Against
Legal practitioners might argue that expanding costs orders in the Property Chamber—which is generally a 'no-costs' or 'limited-costs' jurisdiction—could deter small business tenants from seeking tribunal intervention due to the risk of paying the landlord's legal fees.
Parties to existing disputes may face uncertainty regarding whether these rules apply to proceedings initiated immediately before or after the 30 July 2026 commencement date.
Affected groups may question the lack of a full impact assessment, suggesting that the potential financial burden of costs orders on litigants has not been sufficiently analyzed.
Citation, commencement and extent
- —(1) These Rules may be cited as the Tribunal Procedure (First-tier Tribunal) (Property Chamber) (Amendment No. 2) Rules 2026.
- (2) These Rules come into force immediately after the Product Security and Telecommunications Infrastructure Act 2022 (Conferral of Tribunal Jurisdiction under the Landlord and Tenant Act 1954 etc.) Regulations 2026 come into force.
- (3) Any amendment made by these Rules has the same extent as the provision amended.
This rule establishes the official name of the instrument and sets the timing for its legal effect.
It specifies that these changes will take effect alongside the regulations that transfer jurisdiction over certain business tenancy matters to the Tribunal, scheduled for 30 July 2026.
The geographical reach of these amendments matches the jurisdiction of the original 2013 Rules being amended.
Amendments to the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013
- —(1) The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 are amended as follows.
- (2) In rule 13(1) (orders for costs, reimbursement of fees and interest on costs)-
- (a) omit the 'or' after sub-paragraph (c);
- (b) after sub-paragraph (d) insert ', or
- '(e) in proceedings under Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business, professional and other tenants).'.
This section modifies the existing procedural rules to grant the Tribunal the power to issue orders for costs in a new category of cases.
Specifically, it adds proceedings related to the security of tenure for business and professional tenants under the Landlord and Tenant Act 1954 to the list of matters where the Tribunal can direct one party to pay another's costs or reimburse fees.
This changes the Tribunal's standard operating procedure for business lease renewals and terminations.
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