Many clients who do their own rent possession hearings and other simple possession hearings ask us when costs are awarded, what type of costs are awarded and at what rate.
General rule
The general rule is that the unsuccessful party pays the successful party’s costs – Civil Procedure Rule 44(2). However, the court has wide discretion and can deviate from the general rule. In so doing, the court has to consider all the circumstances of the case including the conduct of all the parties, success on all or some of the issues, any payments into court and any admissible offers.
Fixed or assessed
Fixed costs are applied in limited circumstances. Those circumstances are set out in the Civil Procedure Rules [Part] 45. In relation to rent arrear matters, fixed costs are applied when the claim is for a specified sum of money and judgement is given either through admission or summarily. This is obviously the case in most possession cases.
The claimant can claim fixed costs at issue on the claim form in the costs section.
Assuming that the claim form is served by the court, the fixed costs will be as follows:-
For rent arrears of £500 to £1,000 the fixed costs are £70, if arrears are between £1,000 and £5,000, the costs are £80 and for £5,000 and over, £100. To which should be added the issue fee of £130.00.
In all other circumstances, costs will be assessed. To avoid a detailed assessment, a costs statement should be filed at court and served on the defendant in good time for the hearing. The judge will then consider the costs statement and make a costs order against the defendant in the amount on the statement or as near to the statement – the judge may reduce the costs if he/she feels that any are excessive.
Generally speaking, assessed costs for a rent matter should be in the region of £140.00 plus issue fee.
For further information contact
Elisabeth Bradshaw
Tel: 0845 404 2475
e-mail elisabeth.bradshaw@cobbetts.co.uk
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