See you in court (eventually): Labour’s dumping problems on broken Tribunals

Since coming to power, Labour has passed some hefty laws, including its landmark renters’ rights reform and employment overhaul, but they aren’t giving voters more power; they’re passing them onto the already backlogged Tribunal system, writes Maria Ward-Brennan.

One of the main reforms in focus is the Renters’ Rights Act, which came into force in May. This has led to the overhaul of tenant protections, including abolishing no-fault evictions, replacing fixed-term contracts with rolling periodic tenancies, and effectively ending rent increases. However, some economists have questioned the Act’s effectiveness and raised concerns that the reforms would actually harm renters in the long run.

Valentin Boboc, senior economist at the Institute of Economic Affairs (IEA), told City AM: “Landlords are more likely to quit when letting becomes less profitable and more uncertain. Policies such as creating an increasingly lengthy and uncertain tribunal process [for rent reviews] or imposing onerous costs, may lead more landlords to sell their properties, thereby reducing the availability of rental accommodation.”

However, another concern is the pressure these changes will put on the country’s legal system.

The housing minister, Matthew Pennycook MP, posted on social media on Tuesday that the Labour government’s Renters’ Rights Act “empowers private renters to challenge unreasonable rent increases”, adding that Brits can now refer the matter to the First-Tier Tribunal (FTT). He shared a link to a recent legal judgment in his post on X in which someone challenged their landlord in court over a rent increase, only to have the rent reduced – by more than the proposed increase.

On top of warning against bringing the courts into it, Silvia Andreoletti, head of communications at the Adam Smith Institute, told City AM, “setting rents through Tribunals rather than the free market is a policy bound to fail.”

Surge in Tribunal cases

The major problem with the government’s bold vision is that it pushes people toward Tribunals, which are already backlogged or at risk of becoming backlogged because of the increased workload as a result of these new reforms.

Rent cases go to the First-tier Tribunal, Property Chambers, which has reportedly already seen a surge in cases. As the Act came into force in May, the Ministry of Justice (MoJ) said the first complete three-month period (quarter) in which the new rules were fully in effect across all cases was July to September, and those figures will be published in December.

Andreoletti added that as “almost three-quarters of Tribunals find in favour of the tenant”, she added, “any rational tenant would jump at the opportunity to take any [rent] increase to Tribunal.”

The government was questioned on this matter earlier this year. Sarah Sackman MP reassured Parliament that while the MoJ expects more cases due to housing reforms, the department is managing it through digital upgrades and by centralising staff for Tribunals.

As of April 2026, the MoJ has 112 judges sitting in the First-Tier Tribunal (Property Chamber).

A government spokesperson told City AM: “Our Renters’ Rights Act empowers tenants to challenge unreasonable rent increases, with a recent Manchester case seeing a tribunal determine that the market rate was £200 below the landlord’s proposed level. 

“We are supporting all courts and tribunals to cope with potential additional pressure by maximising sitting days and continuing to invest in the annual recruitment of up to 1,000 judges and tribunal members across all jurisdictions.”

Employment Tribunal on the brink

But it seems to be the solution for all its major overhauls. The government’s major change to employment rights law is now putting severe pressure on the Employment Tribunal, which was already suffering from a backlog formed during the pandemic.

The latest figures show that the Employment Tribunal backlog has hit record highs, with around 70,000 to 77,594 open single claims and over 467,000 total open cases. Lawyers have said some case listings in parts of London and the South East Tribunals stretch into 2028, 2029, and even 2030.

Employment lawyers have been vocal about how strained the Tribunal is, and predictions suggest the pressure will worsen as Employment Rights Act rights, which are spaced out over the next couple of years, all come into force.

Tribunal judges are beginning to face battles over how to handle the surge of AI-generated claims submitted by people, including lengthy grievances that contain hallucinations, which is starting to overwhelm the legal system and add even more delays to the already established backlog.