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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)
It is an absolute pleasure to serve under your chairmanship, Mr Austin. I congratulate my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) on securing this important debate and on her tireless work on rights and protections for holiday caravan owners. Fifteen other Members have made estimable contributions, and I commend them all; they really know their stuff, and it has been a great debate.
Last year, my hon. Friend brought to my attention her concerns about some terrible issues facing holiday caravan owners on a mixed-use caravan site in her constituency. Since then, she and I have had fruitful discussions to better understand the issues. Some of those issues fall within the Department for Business, Energy and Industrial Strategy; I extend my thanks to the Minister for small business, consumers and corporate responsibility—the Under-Secretary of State, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst)—for her interest in the matter. We have already had discussions and agreed several actions for both our Departments, and we hope to update my hon. Friend the Member for Faversham and Mid Kent on them over the coming weeks.
Several important issues have been raised today about the rights of holiday caravan owners and the challenges that they face. The Government have already introduced significant protections for holiday caravan owners. Planning permission may be granted for part of a site to be used for holiday purposes and other parts for residential purposes; I understand that my hon. Friend’s concerns relate to such mixed-use sites. Sadly, our discussion will not include the information that Sonia McColl was after, because we are talking about holiday sites.
Those who live permanently on the residential part of a mixed-use site are protected under the Mobile Homes Act 1983, but as we have heard, that protection does not extend to holiday caravan owners on the site. The local authority will also issue a site licence once planning permission has been granted, but before I talk about site licensing, let me address my hon. Friend’s queries about the rights of holiday caravan owners.
As my hon. Friend highlighted, some holiday caravan owners end up living permanently on their holiday sites, for complex reasons. Some consumers see holiday caravans as a cheaper option—my hon. Friend the Member for Chichester (Gillian Keegan) mentioned the disgraceful situation facing first-time buyers—and may buy them without seeking legal advice, which obviously should not happen. Some holiday caravan owners can end up living permanently on the holiday site because they have been mis-sold their holiday caravan by a rogue site owner who has presented it as being suitable for residential use. That can put them under huge financial pressure, so I understand the suggestion to tackle the problem by extending the protections of the 1983 Act.
The mobile homes legislation, which sets out the contractual relationship between a site owner and a resident, applies only to those on sites with planning permission for residential use. Applying it to all holiday caravan owners would mean such accommodation no longer being available in the tourism sector. As we have heard from my hon. Friends the Members for Boston and Skegness (Matt Warman) and for Wells (James Heappey), and from my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), it is important that we protect the holiday sector and the many benefits that it provides.
The Government have already introduced significant protections for holiday caravan owners under consumer legislation. What is required is to ensure that prospective purchasers of holiday caravans are aware of the rights and responsibilities available to them under consumer law. The rules, which are designed to protect individual buyers from unfair commercial practices, are set out in the Consumer Protection from Unfair Trading Regulations 2008. Breaches of those rules are a criminal offence. In 2014, they were supplemented to provide a private right of redress for consumers who have fallen victim to misleading commercial practices such as presenting a holiday caravan as a permanent residence, hiding information, or providing information in an unclear, ambiguous or untimely way.
Jim Shannon
Sometimes purchasers do not know that their property will depreciate massively within a year or two. They need to be told that at an early stage.
Mrs Wheeler
As ever, the hon. Gentleman brings luminosity to the problem.
As my hon. Friend the Member for Faversham and Mid Kent knows, enforcement of the legislation is the responsibility of the local authority trading standards service. There are already strong penalties for mis-selling by providing misleading advice or omitting material information: it is a criminal offence punishable by a fine on summary conviction, up to the statutory maximum, or up to two years’ imprisonment, as my hon. Friends the Members for Waveney (Peter Aldous) and for Wells mentioned.
Helen Whately
I am very aware of the mis-selling legislation, but I am sure that the Minister is aware that some residents are truly fearful of going down that route, because they think that they are so vulnerable that they may lose their homes.
Mrs Wheeler
My hon. Friend makes a very good point. Towards the end of my brief speech, I will answer her as best I can.
Another measure that I know is of interest to hon. Members is the fit and proper person test. We have also heard of cases of harassment and intimidation of holiday caravan owners; harassment is a criminal and civil offence, so I advise anyone being harassed to immediately contact the police.
Let me expand on the caravan site licensing requirements that I mentioned earlier in relation to the fit and proper person test. Under the Caravan Sites and Control of Development Act 1960, all caravan sites in England, except those exempted, are required to have a site licence in addition to planning permission. The purpose of licensing is to ensure that sites are safe for residents and other users.
The Mobile Homes Act 2013 amended the 1960 Act to introduce a new local authority site licensing regime, which applies to all “relevant protected sites”, including sites with planning permission for residential use only, as well as mixed-use sites with planning permission for both holiday and residential use. Local authorities’ powers include the ability to issue compliance notices if a site owner breaches their site licence conditions. If an owner fails to comply with a notice, the local authority can prosecute them; if convicted, they face an unlimited fine. The 2013 Act also made provision to introduce a fit and proper person test for site owners and managers of all relevant protected sites, including mixed sites. I know that Members will be pleased to learn that we will publish a technical consultation in the summer and legislate to introduce the scheme when parliamentary time allows.
The issues that we have discussed today are very complex, but I reassure hon. Members that the Government are committed to improving the sector. We have already introduced important legislation to strengthen the rights of consumers, but we know that there is more work to be done. I will continue to work with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood, to consider what other measures can be taken on consumer protection, to raise consumers’ awareness of their rights when purchasing holiday caravans and traders’ awareness of their legal obligations.
I will arrange a further meeting with my hon. Friend the Member for Faversham and Mid Kent to update her on the actions that I have set out to undertake. Once again, I congratulate her on securing this debate on such a hugely important matter. It is a pleasure to be in Westminster Hall again.