(1 day, 11 hours ago)
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James Naish (Rushcliffe) (Lab)
I beg to move,
That this House has considered Government support for park home owners.
It is a pleasure to serve under your chairship, Sir Alec. I am grateful to the Backbench Business Committee for granting this debate. I want to acknowledge the turnout, which is pretty impressive, given that we were voting so late last night. I hope it demonstrates to the Minister how passionate people are about this topic.
I am proud to represent six park home sites. In Rushcliffe, as in many constituencies represented here, mobile home sites can be found everywhere. They can be found on the edge of more urban areas, such as the Bassingfield Lane, Carlight Gardens and Greenacres sites near West Bridgford; in smaller village or town settings, such as Radcliffe Park in Radcliffe-on-Trent; and in idyllic rural settings, such as the Tollerton Park site near Tollerton village, or the Langar Woods site near Langar. As those who can count will realise, those are all six park home sites in my constituency.
Freddie van Mierlo (Henley and Thame) (LD)
Speaking of idyllic rural areas, there is none more so than my constituency of Henley and Thame. The average house price is more than half a million pounds, so park homes offer an affordable alternative, yet the 10% charge when people come to sell the homes makes it really difficult. Does the hon. Member agree that it is a good thing that the Government have launched a review, but that more detail is required on the timeline?
James Naish
Absolutely. I am sure that we will talk a lot about the 10% sales commission, but the hon. Member is right to raise it early on. I am pleased that the Minister leading on the reforms is here. I am sure that he will be listening closely to what Members have to say today.
Wherever they are located, mobile home sites are great places to live. They are radically different from the stereotypes of so-called trailer parks from the 1970s and ’80s. Among other things, they offer independence, security and supportive communities. Over the past 21 months, I have been fortunate to work with people from all six Rushcliffe sites on issues related to living in a mobile home. When I applied for this debate, I told the Backbench Business Committee that one thing I have tried to do as a Member of Parliament is to find a couple of policy areas in which small changes can make a big difference to a large number of people. I believe that park or mobile homes are one of those areas.
An estimated 160,000 people live in mobile homes in England alone. In effect, that is two whole constituencies of people, or the equivalent of the population of Northampton, Norwich or Reading. However, because of the geographical dispersion of mobile home sites around the country and the lack of critical mass—on average there are fewer than 100 residents per site—mobile home residents are talked about only sporadically. When they are talked about, warm words are rarely followed by action. I am determined that this Parliament will change that for good. To that end, I welcome the fact that in March this Government opened a call for evidence, which closes on Friday 29 May, on the 10% commission charge on park home sales. That is a significant step forward. I hope that today’s debate will ensure that the voices of park and mobile home residents are amplified and heard clearly by Ministers and civil servants as that work continues.
Leigh Ingham (Stafford) (Lab)
Park home owners across my constituency of Stafford, Eccleshall and the villages have contacted me about the deeply unfair 10% commission charge. It is a levy that has not been changed in almost 45 years, and it falls hardest on the older residents, who make up about 80% of park home owners, so I was delighted to see the Government announce the long overdue review in March. Does my hon. Friend agree that after years of neglect by previous Governments, park home owners deserve real, meaningful reform that finally gives them the financial security that they need?
James Naish
Yes, and I will talk about that in a moment. There has been cross-party consensus on the need to make changes, but it will fall to this Government to make them. I am pleased that in advance of this debate, we saw that move from the Government, and I trust that there will be proper, meaningful change in due course.
Manuela Perteghella (Stratford-on-Avon) (LD)
I hear repeatedly from park home residents in my constituency that they do not understand what the 10% charge is actually paying for. They feel that they have very little leverage and are stuck in a system that they cannot challenge. Does the hon. Member agree that any review must go beyond another round of evidence gathering? This time, park home residents will expect real change.
James Naish
The hon. Lady is absolutely right. I will talk later about the different reasons that have been given for the 10% commission, which demonstrate in and of themselves that nobody is sure what it is for. It is a hangover from a past era.
Jim Dickson (Dartford) (Lab)
I am grateful to my hon. Friend for securing this debate and to the Backbench Business Committee for granting it. I have had the pleasure of visiting Stonehill Woods Park in my constituency, a wonderful park homes community where I heard residents’ huge frustrations about the regulation of park homes, particularly the 10% sales commission. Does my hon. Friend agree that the Government should look carefully at all the evidence provided as part of the consultation, and at whether the 10% commission can be reduced or scrapped entirely?
James Naish
I trust that the Minister and his team will do exactly that. This is not just about the 10% sales commission; there are broader issues impacting park home residents. I will come on to those matters shortly.
Let me say two important things. First, mobile homes can be a very good housing option. They typically offer people a smaller, more manageable home in an attractive, close-knit community. The quality of mobile homes has improved considerably over recent years; the sites are often now home to a diverse mix of individuals and families, just like any other location.
Secondly, and critically, for most people park homes are not a second home or a luxury purchase; they are their only home. They therefore represent security, independence and a lifetime of savings, just like the bricks-and-mortar properties that most of us inhabit. That is precisely why protections for mobile home owners matter. We are talking about 160,000 ordinary people living ordinary lives in 100,000 increasingly ordinary properties, but they are underpinned by out-of-date legislation and perceptions. Rightly, the Government are looking at major commonhold, leasehold and fleecehold reforms to end the feudal leasehold system and the injustice of unfair maintenance costs, but as part of those wider changes, park and mobile home owners must not be forgotten. I hope that today’s debate will make sure that they are not.
On mobile homes, MPs from parties of all colours have talked over the years about mis-selling, poor maintenance, weak enforcement, opaque utility charges, disputes over pitch fees, sale blocking and the 10% commission charge when a home is sold. Most concerningly, MPs have often alluded to the imbalance of power between mobile home residents and site owners.
Anna Dixon (Shipley) (Lab)
I have been contacted by residents of the Harden and Bingley Park on Goit Stock Lane in Harden. They feel trapped in their relationship with the site owner, which they have said does nothing. On the 10% commission, they want to give the whole of their estate to their family as an inheritance. Does my hon. Friend agree that it is important that residents feed their views into the consultation, and that we make sure that the deal between park home owners and residents is fair and proportionate?
James Naish
My hon. Friend is absolutely right. The consultation is being run for a reason. I encourage anyone watching the debate or emailing their MPs about it to go further and engage with the consultation, because I am sure that the Minister is looking forward to review those responses.
Martin Wrigley (Newton Abbot) (LD)
I thank the hon. Member for securing this valuable debate. I have a good number of park home sites in my constituency. Not only do they suffer the 10% commission, poor maintenance levels and high service charges, but they have atrocious service on the utilities that they have to buy through the park home owner. Some years ago, one site collectively was charged £100,000 for a water leak, which was £1,000 a home. I got that refunded from South West Water. The same site recently had blocked drains over a weekend, so people could not flush their toilets, and their Calor gas system was deemed unfit for use, so they had no heating. Is that an acceptable way to run a site? Does the hon. Member agree that residents need better enforcement and support, and not just from the site owner?
Order. Before the hon. Gentleman responds, let me say that this is an exceptionally well-subscribed debate. The Front Benchers’ wind-ups will start at 10.30 am, so I ask that interventions be short and sharp.
James Naish
Thank you, Sir Alec. I will press on, but the hon. Member is absolutely right and has touched on some issues that I will talk about. I congratulate him on ensuring his residents got their money back.
Most concerning, and often alluded to by MPs, is the imbalance of power. A park home resident may own the home they live in, but they are not in control of the land beneath or around it, and they often have a very limited say in related decisions. When the same person or entity controls the site, the pitch, the rules, the maintenance, potentially the utilities, and the conditions under which the home is sold, it is understandable that residents feel exposed.
That can and must change. It needs only relatively minor adjustments to legislation. I trust that the Minister and his team will prioritise that in the next parliamentary Session, given the tangible difference that can be made to the lives of 160,000 people up and down the country.
James Naish
I will press on and see where we get to. I will not go into detail about many key issues facing park and mobile home owners—I am sure colleagues will touch on them, as they have already started to—but I want to mention, up front, some key items that are common across all sites.
The first is maintenance and site standards. Site residents frequently report poor upkeep, damaged roads, drainage issues and neglected communal areas, despite continuing to pay high fees directly to the site owners. One of my six park home sites has repeatedly raised issues about poor waste disposal, leading to rats on site, and intermittent issues with water and heating quality. Such issues raise fundamental questions about transparency and accountability in how residents’ money is used.
Secondly, there is the transparency of pitch fees and charges. While preparing for the debate, I was made aware of several threats of eviction for non-payment of pitch fees and charges, some of which have been legitimately contested by residents. More than once, the management of mobile home sites has been described as the wild west. It is clear that stronger protections are needed to prevent unscrupulous practices.
Thirdly, the word “enforcement” has already been mentioned. In one case, a constituent of mine was chased for six years by a management company to pay for drain clearance that was not her responsibility. Although rights exist, and local authorities have powers, many residents feel unsupported when issues arise. They may be passed between councils, tribunals and advice services. They may fear repercussions for complaining. That creates an enforcement gap between legal rights and the ability to exercise them, particularly for vulnerable residents.
Fourthly, transparency over utilities has been raised with me by constituents at one of my weekly surgeries. Where residents receive electricity, gas or water via the site owner, it can be difficult to understand billing, fairness and eligibility for support. Residents need clear, enforceable rights to transparent billing, fair pricing and clarity on the Government’s engagement with Ofgem’s work on resale pricing.
Finally, there is the 10% sales commission, which has been raised several times today. For residents, that is a direct loss of equity, often at the moment when they need their money most, potentially to move closer to family, move into more suitable accommodation or fund care costs. The charge is poorly understood, insufficiently transparent and increasingly disproportionate, as the value of park homes has risen. In 1983, a park home sold for £12,000 would have generated a commission of £1,200, about 14% of an average salary at the time. In 2026, a park home sold for £160,000 would generate a commission of £16,000, about 42% of the current average salary. The commission is still 10%, but the cash value has grown substantially.
I recognise that site owners argue that the commission forms part of their business model and helps to support investment in sites. However, there are already routes for that to be done transparently. For example, under the framework in the Mobile Homes Act 2013, improvements to a park can be reflected in pitch fee reviews, which involve a proper process and residents being consulted. What residents primarily object to is effectively being charged twice by site owners: once through pitch fees and other charges, and again through a 10% deduction from the value of their home when they sell.
The inequity is reflected in the ever-changing justifications for the commission. Depending on who people speak to, it has been linked to road maintenance costs, the offsetting of pitch fees, the maintenance of site viability and/or the modernisation of infrastructure. No wonder residents are sceptical about how and where the proceeds are spent.
This debate is ultimately about fairness. It is about whether residents can enjoy the home that they have bought on the terms on which they bought it. It is about whether people can understand their bills, challenge unfair charges and sell their homes freely. It is about whether the law is meaningful in practice, not just on paper, and whether a 10% commission charge introduced decades ago remains fair and proportionate today.
I hope that the Minister will respond to several points. First, will the Government consider stronger protections at the point of sale, so that buyers are clear about the legal status of a site and their ongoing obligations before they purchase? Secondly, will Ministers review whether local authorities have the resources, expertise and duties needed to consistently enforce site standards? Thirdly, will the Government work with Ofgem to ensure transparent and fair utility charging for residents who receive energy or other utilities through site owners? Finally, will the Minister confirm today that, following the call for evidence, the Government are prepared to consider real reform to the current commission arrangements?
Park or mobile home residents are not asking for special treatment. They are asking for basic fairness, transparency and security in the homes that they have bought. Many have worked hard their whole life, invested their savings and chosen park home living because they believed that it would suit them and offer peace of mind. Like all of us, they deserve a fair system that protects them when things go wrong. I look forward to hearing hon. Members’ contributions and the Minister’s response to Members across the House.
Several hon. Members rose—
Order. As 17 Members have indicated a wish to speak, I will set an immediate three-minute limit.
It is a pleasure to serve under your chairmanship, Sir Alec. I thank the hon. Member for Rushcliffe (James Naish) for securing such an important debate. My right hon. Friend the Member for Romsey and Southampton North (Caroline Nokes), who is here beside me, is unable to speak in the debate, but I want to put on the record how important park homes are in her constituency. It is important to raise that.
Let us say that a couple of relatively modest means want to move to a park home. They will probably look first at Shropshire, a beautiful county where we have 39 outstanding park home sites. I do not want to downplay the rest of Shropshire, but obviously they will choose South Shropshire, the most beautiful constituency in the country. They purchase a park home, but as we know, circumstances change: they can plan for the next five or 10 years, but something could happen in a matter of months that means they have to resell that park home. The current 10% commission on sales means that, if they have to move within the next six or 12 months, they will lose that 10%, which they will have to pay out of the sale price. In no other housing market in the UK would we expect—unless there is a significant rise or a crash during that time—to move because of personal circumstances and lose 10%.
I have spoken to park home owners in Hollins Park and Highley Park Homes who feel that that traps them into their park homes and that they are unable to get out. The information is available when they set out to purchase, but if their circumstances change, that causes an issue. This blatantly discriminates against park home owners compared with owners in the rest of the UK housing market.
People argue that commission is based on the value of the land as a form of stamp duty, but sellers do not pay stamp duty; buyers do. There is also a taper mechanism for stamp duty in the UK, which is not the case with commission. On top of that, park home owners pay pitch fees as well as site fees. I have met various site owners and know that some look after their park homes excellently, such as in Homelands Park in Chorley, but other sites have unsurfaced roads and huge problems. In 2002, a study reported that commission makes up only 17% of site owners’ income. I am aware that they need a viable business model, but it should not be the commission model that comes on the back of my park home owners.
This problem has been raised across the many sites in South Shropshire. Park home residents deserve a far better deal than they get. I want the Minister to look seriously at the position of park home owners in South Shropshire, to ensure that they get a fair deal and to get this commission scrapped, because it does not work. It is an outdated model and I would love to see it go.
It is a pleasure to serve under your chairship, Sir Alec. I congratulate my hon. Friend the Member for Rushcliffe (James Naish) on securing this important debate. Many of the issues he raised in his excellent speech affect a number of my constituents. My constituency is home to several park home sites, including Caddington Park on Skimpot lane, Hillcrest Park in Caddington, Brickhill Park in Pepperstock, Brookfield Park in Totternhoe, Whipsnade park homes, Woodside park homes and some others. I have had the opportunity to meet and correspond with many residents from those communities.
With about 80% of park home owners aged over 65, park homes can appear to be an attractive and affordable option for retirement. However, there are long-standing concerns about the regulation of the sector. I will touch on two issues that have repeatedly been raised with me: the 10% sales commission and rising pitch fees.
The 10% commission is one of the most contentious issues in the sector.
I will carry on, I am afraid. When residents sell their homes, they have to pay up to 10% of the sale price to the site owner. That can amount to tens of thousands of pounds, with little clarity about what the payment covers. One constituent recently told me that their home could sell for £280,000, resulting in a £28,000 payment to the site owner “for doing nothing,” in her words. The commission has real consequences for park home residents, effectively acting as a deduction from the owner’s wealth and limiting how much they can reinvest in a new home, use for care or rely on as financial security. Most park home owners are retirees who bought their homes outright using savings or proceeds from selling a traditional house, and they often rely on that capital later in life to fund care, to relocate or for other essential needs.
Alongside that commission, residents must also pay ongoing pitch fees for the land their homes sit on. Fees are typically reviewed annually, and often rise with inflation. That may sound reasonable, but those increases compound over time, especially for those on fixed incomes. Although pitch fees are intended to cover maintenance and site services, residents frequently express concerns about transparency and value for money. Another of my constituents living in a park home wrote to me last year and told me that her pitch fee was more than £200 per month. She stated that
“this should cover maintenance to the site, but in our case the owner does not do any maintenance, resulting in a roadway that is not fit for purpose.”
Overall, the current park home financial structure raises serious questions about fairness, transparency and long-term sustainability. I welcome the Minister’s action in recent months to launch a renewed call for evidence on the rationale for a commission payment on the sale of a park home, and to publish the responses from the previous research report. I look forward to receiving further updates on the Government’s plans to address this issue following the conclusion of the consultation on 29 May. I hope that that will bring long overdue reform for my constituents.
It is a real pleasure to serve under your chairship, Sir Alec. I thank the hon. Member for Rushcliffe (James Naish) for bringing to the Chamber this vital debate on a matter that strikes at the very heart of many of my constituents, and indeed of many people across the United Kingdom of Great Britain and Northern Ireland, as it concerns retirement and peace of mind. It is good to see the Minister in his place, and I wish him well in his role. As always, I have asks of him, and will come to those in my conclusion.
In Ballyhalbert and Cloughey in my constituency, we have two park home sites. I have had a long working relationship with them and the group association over the years. The residents in my neck of the woods are decent, hard-working people, many of them elderly, who put every penny they have into their homes, but who often find themselves caught in a gap between the legislation we have here in Westminster and what is delivered back home in Northern Ireland. We must be very clear: a home is a home, whether it is built of bricks and mortar or a high-quality residential mobile home on a licensed site.
Does my hon. Friend agree that in many parts of Northern Ireland, but especially in my constituency, this is about striking a balance between those who own or rent their mobile homes and the site owners?
My hon. Friend sums up some of the issues. It is a question of getting that balance.
I am worried, as I often am, that our constituents in the Province are being left behind. We have seen the Mobile Homes Act bring protections to those in England and Wales by dealing with those rogue site owners who, frankly, are more concerned with profit than they are with people’s right to live in peace and contentment, but we in Northern Ireland are still waiting for the same robust approach. I know that the Minister is very responsive to the requests of us all. My ask of him is to engage with the Minister back home to ensure that what is happening here will happen for people in Northern Ireland as well.
I will not take the extra minute, Sir Alec, because I am conscious of other Members wanting to speak, but I will highlight three specific points that must be addressed. The first is the 10% commission fee. It is a hidden and heavy burden for an elderly person to face a 10% exit fee just to move into a care home or to be closer to family. We need parity across the United Kingdom in how those fees are regulated. That is my first request of the Minister.
My second request relates to energy costs. Many of my constituents are off-grid and rely on liquefied petroleum gas or supplied electricity. I thank the Government for the warm home discount, but it is often a struggle for those residents to access it. We need a system that is automatic, not one that requires a senior citizen to jump through digital hoops.
Thirdly, on site licensing and enforcement, we need to ensure that local councils in Northern Ireland have the teeth needed to deal with those few site owners who harass or bully residents. A fit and proper persons test must be as meaningful in Comber or Newtownards as it is in Cornwall.
I have highlighted the Northern Ireland question and the role that perhaps the Minister will kindly take on for us in relation to the Minister back home, Gordon Lyons. Will the Minister commit to a meeting or corresponding with the relevant Minister in Northern Ireland to ensure that the legislative gaps are closed and that my constituents in Strangford can sleep easy knowing that their homes and rights are protected?
Andrew Pakes (Peterborough) (Lab/Co-op)
It is a privilege to speak in this debate and to represent park home owners in my constituency, and to follow the passionate call for action from my hon. Friend the Member for Rushcliffe (James Naish). It is genuinely touching to see that we have a cross-party consensus between many in this House on the need for justice for our park home residents.
Problems relating to park homes have been a constant and worrying part of my casework since I was elected. I regularly speak to residents who are frustrated and angry that their security—the security of having a home—is at risk because of the power imbalance between park home owners and site owners. It is not an exaggeration to talk about park home justice.
I pay tribute to park home campaigners in my constituency. I asked them yesterday if I could put some of their names on record, because they are great tribunes there, but they did not feel that it would be appropriate or right for me to name them because of the relationship with their site owners. However, I would like to give a shout-out to two councillors in my patch, Shabina Qayyum and Samantha Hemraj, who have consistently fought on the side of park home owners for longer than I have and who brought me up to speed on these issues.
This debate speaks not just to individual cases of people falling through the gaps or a blip, but to a systemic failure in the law, regulation and enforcement of decent standards for park home residents. The reality is stark. Like other speakers, I highlight the predatory nature of the relationships. Many residents feel that site owners prey on relatives of homeowners who die by buying up their homes cheaply and selling them on at a huge profit. In one part of Peterborough, a home that was recently bought for £25,000 was sold a few weeks later, when the homeowner died before Christmas, for £85,000. That is in addition to the rank injustice of the 10% commission that site owners make on all their sales.
The bigger issue is that, in too many cases, the state is blind to residents’ frustrations and too weak to deal with the injustices they face. Too often, maintenance is poor, despite increasing charges and fees being passed on to park home residents, and local authority enforcement is often weak.
Samantha Niblett
A constituent of mine, Marion Webster, is a keen supporter of the Park Home Owners Justice Campaign. Like my hon. Friend’s constituents, she feels that it is incredibly unjust that, if she wants to sell her home, she has to give 10% away. That almost puts fleecehold and leasehold to shame by comparison. Does my hon. Friend agree that it is time for the Government to take action on the back of this debate, which I thank my hon. Friend the Member for Rushcliffe (James Naish) for securing?
Andrew Pakes
My hon. Friend the Member for Rushcliffe described some elements of this sector as management by the wild west. Residents have used stronger words to me to describe the people who run some of these sites. That is why we need justice.
Local authorities are often too reluctant or slow to intervene when problems arise, including complaints about site licence breaches, poor maintenance or sale blocking, or concerns about whether a site owner is a fit and proper person to manage the site. Resolving those problems can take years, and there are ample opportunities for site owners to duck and delay the process. I welcome the consultation on the 10% commission, and I look forward to updates on that; however, is the Minister assured that local authorities have the right mix of powers and resources to lead on this work? Do we need a national approach and better standards?
Before I finish, I want to speak about utilities, which many Members have mentioned. Like others, I have raised with the Minister for Energy issues such as the energy discount. That is an important measure that the Government introduced to help homeowners and bill payers with the cost of living, but for many park home owners in my constituency, the bill is paid directly by the site owner, and the lack of transparency, agency and power means that, yet again, something that should be good news for homeowners is tainted by the power imbalance between site owners and homeowners.
Rebecca Smith (South West Devon) (Con)
I thank the hon. Member for Rushcliffe (James Naish) for securing this important debate. There are clearly many issues facing park home residents across the country, and I want to touch briefly on two of them.
The first is the challenge around planning and sales problems. At Devon Oaks Park, a site in my constituency, it seems that the owner has effectively mis-sold properties on varying lengths of tenancy. When it is found that he has breached the planning conditions, it is the residents who are impacted, not the park owner. Dartmoor national park is rightly seeking to enforce those conditions, but many residents will be made homeless if that issue cannot be resolved.
I would be interested to know what the Minister has in mind, particularly for the review being done on the commission. Could that review look at planning and tenancy length? Ultimately, people choose to live in park homes permanently, but they can end up on a site with a time limit, or one where some properties are on a time limit and some not. It is incredibly difficult to know what they are buying into.
The main challenge that I want to address, which has already been touched on, is the fuel costs for residents, particularly those who use LPG. I recently surveyed residents of Devon Oak Park and Bittaford Wood on whether the issue was impacting them, so that I could seek to do something about it. Everyone using LPG who responded had seen an increase in their costs. Most were paying up to a quarter more, and some were paying as much as half again. That equates to a bill increase of more than £100, and some are paying as much as £150 more. My view is that every constituent whose household relies on LPG should receive support equivalent to that going to households using oil. I appreciate that the Minister is in the Ministry of Housing, Communities and Local Government, rather than the Department for Energy Security and Net Zero, but I hope he will hear those pleas.
It is not difficult to understand why my constituents are seeking support. As we have heard, these households are off grid not by choice, but by circumstance. LPG prices, unlike mains gas prices, are unregulated and uncapped, and users are exposed to market volatility with no safety net. One constituent told me that they are
“finding it very hard to make ends meet.”
Another told me that
“being pensioners does not give us much for essentials”.
One constituent simply said: “Help, please.” I plead with the Minister to hear that and to commit to make that plea on behalf of park home owners to his colleagues in other Departments.
Alison Hume (Scarborough and Whitby) (Lab)
It is a pleasure to serve under your chairship, Sir Alec. I congratulate my hon. Friend the Member for Rushcliffe (James Naish) on securing this timely debate. My constituency is known for its coastal beauty, and as such it is a hotspot for park homes. Of UK mobile home owners, 80% are aged 65 and above, and they buy their homes in pursuit of a quiet, secure retirement. Unfortunately, many end up enduring a living nightmare, due to the widespread intimidation and mis-selling by some site owners.
My constituent Dennis is one such retiree. He was mis-sold a holiday home on a holiday park under the false pretence that it was a residential home. He was persuaded to make the purchase by signage that suggested that the caravan could be used as his sole residence and inhabited all year round. After moving in, Dennis discovered that he was legally required to have a permanent home elsewhere, which is the rule for holiday parks.
After the summer was over, Dennis faced, in his words, a
“relentless campaign of harassment, intimidation and verbal abuse”.
He was frequently approached by members of staff and warned that his home would be removed from the site if he did not vacate it. My constituent was threatened with physical violence. Eventually, when that intimidation became too much, Dennis sold his home back to the site at a 60% loss. The site sold it four days later for a substantial profit. Dennis told me earlier this year that, having lost tens of thousands of pounds in savings and with legal representation having cost more than £4,000, he felt that his retirement was ruined. That story is repeated again and again, up and down the country.
The Holiday Park Action Group represents more 84,000 holiday park home owners across the country. As its founder Carole Keeble told me, Dennis is one of thousands of victims whose lives have been severely impacted by an unregulated industry. Sites often have a mixed licence that permits them to sell both residential and holiday homes, and they are sometimes deliberately unclear about which type they are selling. Buyers are often not properly informed of their contractual rights and obligations and are then forced to resell at a loss. Victims are led to think that they are at fault for having bought the home, not realising that they were intentionally misled. According to the Holiday Park Action Group, that has led to mental health problems and, tragically, to suicides.
Will my hon. Friend the Minister respond to this debate by telling us how his Department plans to work with the Department for Business and Trade to establish robust protections and to regulate this industry, where people such as my constituent Dennis are being exploited?
Clive Jones (Wokingham) (LD)
It is a pleasure to serve under your chairship, Sir Alec. I congratulate the hon. Member for Rushcliffe (James Naish) for securing this important debate.
There are six park home estates in my constituency. They provide vital accommodation and a strong sense of community among residents who take pride in their homes and their estates. This debate raises a fundamental issue of fairness. Many of my park home residents are retirees, often on fixed incomes. Many downsize into park homes precisely to release equity, reduce costs and secure greater financial stability. When they come to sell their home, the requirement to hand over 10% of the sale price to the site owner causes real distress.
Chris Coghlan
Park home owners in my constituency tell me that site owners have pressured them into selling, in order to get that 10% commission. Does my hon. Friend agree that that is wrong and that the 10% commission should be abolished?
Clive Jones
I agree 100%. It is not a small administrative fee: it can amount to tens of thousands of pounds. That charge exists outside the protections that most homeowners take for granted. In the mainstream housing market, sellers are protected by competition and choice. Estate agent fees are negotiated. Services must be delivered to justify the costs and, if someone does not like the terms, they can walk away. Park home residents do not have that freedom.
We would not accept this in any other part of the housing system—we would not accept a mandatory 10% charge simply for the right to sell our own homes. People delay moving closer to their families and put off downsizing further. Even when their health declines, some remain in homes that no longer meet their needs simply because they cannot afford to lose such a large portion of their asset. No group of homeowners should face a system that strips away rights and imposes disproportionate financial penalties.
It is time to bring fairness back into the system. That is why I support the PHOJC’s calls for the 10% charge to be ended without delay or replaced with a fairer system that does not penalise residents. Changes should also be made to ensure that park home residents have the same protection and fair treatment as all other homeowners, bringing park home living in line with normal consumer and housing rights.
Mr Luke Charters (York Outer) (Lab)
I thank my hon. Friend the Member for Rushcliffe (James Naish) for bringing the voice of park home owners to Parliament. For many people, choosing a park home is not just a housing decision; it is about investing in the next chapter of their lives. It is a choice for peace and a slower, gentler pace of life. People sell their brick-and-mortar homes and invest their life savings. They are not chasing luxury; they are seeking a bit of security.
Sir Alec, you will know that in York and North Yorkshire we have some of the best park homes in the country. When people go to Mill Garth Park or Mount Pleasant Park in my constituency, they see immediately that these are beautiful parks, set among nature, with close-knit communities—but for too many, what was meant to be a peaceful retirement has slowly, heartbreakingly turned into something else entirely. For some residents, their park home has become a financial prison.
Residents who believed they were buying certainty now lie awake worrying about pitch fees they cannot control. That is why I warmly welcome the Government’s plan to move annual pitch fee increases away from retail price index and towards consumer price index. However, there is one issue that still casts a very long shadow over the lives of park home residents: the 10% commission charge on resale.
One of my constituents simply wants to sell up to move closer to their son. Time is precious in life and, for however many years they have left, they just want more time together as a family; but when she and her husband sell up, 10% of the proceeds will go not towards the move or towards their future, but to the site owner. There is no other form of home ownership in the country that requires sellers to hand over 10% of their home’s value to another person. If I were at the Financial Conduct Authority, investigating a similar pricing structure in the financial services industry, I would be saying loud and clear, “Mis-selling, mis-selling, mis-selling.” It absolutely stinks.
I am genuinely pleased that the Government have launched a formal review of that 10% commission. After all, this is not just about regulations, commissions or fees; it is about dignity, security and ensuring that a home someone chose for peace does not become a source of fear. Retirees should be able to enjoy the life they have earned, without having to fight just to hold on.
Several hon. Members rose—
Order. Before I call Sir Christopher, I will set an immediate two-minute limit.
It is a pleasure to serve under your chairmanship, Sir Alec. I have been involved with the park homes issue for the best part of 30 years; I have 2,000 people in my constituency living in park homes, and I am much concerned by the abuses so many of them have suffered—not just in my constituency, but across the country.
It is a pleasure to follow the hon. Member for York Outer (Mr Charters), who referred to my private Member’s Bill, the Mobile Homes (Pitch Fees) Act 2023, which changed the pitch fee maximum from RPI to CPI. I was privileged to be able to take that Bill through all its stages in one day; it is an example of how private Member’s Bills can be used to help park home residents.
My former colleague Peter Aldous did exactly the same thing, introducing the fit and proper person legislation through the Mobile Homes Act 2013. That Bill was effectively drafted in what is now the Ministry of Housing, Communities and Local Government and was given priority by the then Minister, Grant Shapps, who said, “I can’t get parliamentary time from the Government, but I’m going to promote this among Back Benchers.” I ask the Minister here today to do something similar regarding the lack of action on complex ownership. That issue was raised in 2017 and the Government promised to take action on it, but nothing has happened.
The Minister kindly came along and addressed the all-party parliamentary group on park homes in February last year. Since then, he has honoured his commitment to do something about the 10% commission issue. However, at the moment there is complete radio silence on dealing with the abuses that exist, some of which have been referred to by the hon. Member for Scarborough and Whitby (Alison Hume) and others. Action must be taken to protect park home owners from rogue operators, of whom there are far too many.
It is a pleasure to follow the hon. Member for Christchurch (Sir Christopher Chope). Demographically, Lancaster and Wyre has a very similar number of park homes to his constituency, and I have discussed them with him on a number of occasions, which shows the cross-party consensus that what is going on in this industry is nothing short of a scandal.
Colleagues may have seen my constituency in the “Panorama” documentary on park homes in 2024, in which Wyre country park featured. I pay tribute to the two brave park residents who spoke out and were interviewed, but that did not come consequence-free. We have talked a lot about bullying and intimidation, and sadly, in August 2025, both their park homes burned down on the same day, in broad daylight, 90 minutes apart from each other. The cause was never found—I will leave that hanging, and I pay tribute to them.
There are a great many park home sites that are well run, and probably a lot of park home owners are listening to this and thinking, “Actually, I live somewhere that is pretty good.” But unfortunately, the rogue operators are now giving the entire industry a bad name, which is why we need to take action.
I agree entirely with the points made by my hon. Friend the Member for Rushcliffe (James Naish) at the beginning of the debate and I congratulate him on securing it. In the limited time that I have, I will take the opportunity to put on record my concerns about one particular site in my constituency, called Havenlyn residential park.
I have been approached by dozens of residents and park home owners on that site. The issues of bullying, intimidation and rules being changed without any consultation are alarming. In the past couple of days, I have heard from one of them that the terms and conditions of park residents have now been changed, so that if someone is selling a park home on that site, they cannot sell it to anyone younger than them. Ultimately, that will force many into an impossible situation, because, given the nature of park homes, older people live on these sites and there are issues when they are looking to sell—they might be towards the end of their life, or perhaps the previous owner had died and left it as an inheritance to their children, which, as I have heard, just ends up becoming a burden.
In the remaining seconds that I have left, I will ask the Minister these questions. Can he do any more to empower local authorities, which are meant to be regulating and enforcing regulations? Do they need stronger statutory duties or more resources, because at the moment Wyre council does not seem able to protect residents in my constituency?
I will make three brief points. The first is on fit and proper persons. As my hon. Friend the Member for Christchurch (Sir Christopher Chope) indicated, the legislation is on the statute book. Peter Aldous did a super job to get it there, but it now needs to be properly implemented. The problems we have heard about this morning tend to be generated by cowboy owners, who are not fit and proper people and should never, ever have been allowed to acquire park homes in the first place.
Secondly, on licensing, it is absolutely clear that local authorities often lack the expertise to enforce the legislation that is already on the statute book. We must have licensing officers who understand the terms and conditions of the licences granted for the operation of these parks, and who know how to enforce them. Many of the problems that I have experienced in my constituency arise from a lack of enforcement, when cowboy operators could and should be brought to book.
Thirdly, I will make myself the most unpopular person in the room—
I will be in a minority of one. If we are to address the 10% commission issue, and we must, we have to understand that it is part of the business model. Park home owners have the opportunity to read the lease they take out; they know what they are buying and what they are signing, and the commission is a significant part of the model. If it is going to be revised, and I accept that there is a strong case for revision, we have to take account of the fact that those costs will fall elsewhere.
Kevin Bonavia (Stevenage) (Lab)
It is a pleasure to see you in the Chair, Sir Alec. I congratulate my hon. Friend the Member for Rushcliffe (James Naish) on securing this debate. For residents of park homes in my constituency, this is not a technical issue; it is about power, protection and whether anyone steps in when things go wrong. Park homes are meant to offer security and affordability, particularly for older people. For many, park homes represent their life savings and their final move, but too often, they instead experience anxiety about charges they do not understand, standards that quietly slip and enforcement that never seems to arrive.
Let me give some examples. Pitch fees are a major source of the pressure they face. Residents face increases imposed with little explanation, often linked to CPI, entirely at the site owner’s discretion. Getting basic receipts can be a struggle, and many residents do not challenge these increases because they are afraid—they are afraid of retaliation, afraid of being labelled difficult and afraid that services will quietly deteriorate if they speak up.
Then there is maintenance. Members have already mentioned some examples of local authorities failing to enforce. Such examples are why I have written to East Herts district council, which is the licensing authority for a park home in my constituency, to set out my residents’ concerns. I expect the district council to act promptly, and my participation in this debate should underline that expectation clearly.
Finally, I turn to the 10% sales commission, which we have heard so much about today. However, we have not really heard why it is set at that arbitrary level. On behalf of park home residents in my constituency, I ask the Minister to consider seriously either removing it or reducing it to a far lower level.
At its heart, this debate is about fairness. Park home residents are not asking for special treatment; they are asking for honesty about what they are buying, transparency about what they are paying for, proper maintenance of the places they live and councils that enforce the rules. I ask the Minister to consider all that very carefully.
I thank the hon. Member for Rushcliffe (James Naish) for bringing this debate to Westminster Hall and for setting the scene so clearly about the many issues faced by people living in park homes. Time is short, so I will speak only about the 10% commission.
Back in 2022, I presented a petition to the House calling for annual pitch fee increases for park homes to be linked to consumer price inflation rather than retail price inflation. The petition was signed by 165 residents of Ashwood Park in Wincham, with the support of the Park Home Owners Justice Campaign and my hon. Friend the Member for Christchurch (Sir Christopher Chope), and I was pleased that the previous Government enacted that change. It was a simple but meaningful adjustment, as the change to the 10% commission would be.
We know that 160,000 people live in park homes. Many of them are retired, and they moved there for affordability, security and a sense of community, but that is not what they are getting. The commission was lowered in 1983 from 15% to 10%, so let me ask the Minister the following questions, because it could be changed again. Who is the call for evidence open to? Are all park home residents able to make a submission? What is the timeline for a decision once the call for evidence has been closed? What assurances can the Minister provide that the decision on reforming the commission charge will be made in a timely way? And is this matter a top priority for the Minister and his Department?
Michelle Welsh (Sherwood Forest) (Lab)
It is a privilege to serve under your chairmanship, Sir Alec. I congratulate my hon. Friend the Member for Rushcliffe (James Naish) on securing this important debate. In my constituency, there are a number of park home sites, including in Rainworth, Calverton and Ollerton, and those sites often provide an affordable and accessible housing option for people later in life. Park homes in my constituency are situated close to local amenities, making them particularly suitable for vulnerable and older residents. However, the uncertainty that many park home owners face over their utility bills is a significant concern.
In many cases, park home residents in my constituency purchase electricity, gas or water through the site owner rather than directly from a utility supplier. Although that arrangement can simplify billing by reducing the number of payments that residents need to manage, it can also make it difficult to understand how charges are calculated or to confirm whether bills accurately reflect individual household usage. It may sometimes be possible to request further information, but residents can be reluctant to do so in fear of retaliation or of a breakdown in relationships with site owners. No one should feel intimidated or isolated in their own home. I am concerned that the lack of transparency and risk of retaliation may disproportionately affect older and more vulnerable constituents. That is particularly worrying given the current uncertainty around electricity and gas prices.
For far too long, park home residents have been treated as an afterthought: paying more, getting less and having little power to challenge it. The 10% sales charge, high utility costs and poor services are a pattern of unfairness. I urge the Minister to introduce real reform, restore balances and give my constituents the dignity and protection that they need and deserve.
It is a pleasure to serve under your chairmanship, Sir Alec. I, too, have been contacted by many of my constituents, throughout my six and a half years as the MP for South West Hertfordshire, with a wide range of complaints and concerns about park homes, particularly from residents of Long Pightle Park, Highview and Newlands Park. This debate is the result of excellent work by the Park Home Owners Justice Campaign, which is of course supported by several hon. Members in attendance at this debate. This issue is cross-party and cross-country, so I applaud all those hon. Members for their excellent efforts. I also make reference to Councillor Vicky Edwards and Councillor Ian Campbell in my constituency, who helped me with this speech.
Park homes offer an affordable option for many people across the UK to relocate, often in retirement, and enjoy the beauty of our natural landscapes. That is something that I can definitely attest to in South West Hertfordshire. But park homes also leave residents vulnerable to many issues, including exploitative site operators, and the majority of park home owners are retirees or older people. As has been noted, the longest-running campaign, the PHOJC, is against the 10% commission that residents are still expected to pay to site owners during the purchase of their park home. That is especially damaging to elderly residents, who do not have excess capital and for whom the commission is a significant part of their retirement fund. It is important that the Government continue the existing inquiry—a continuation of the work of the previous Government—into the impact that a change in the maximum commission legislation would have on residents and on the industry as a whole. I know that my constituents will continue to support the work being done on that campaign.
I still receive many complaints from park home owners in my constituency, mostly regarding poorly maintained landscapes, drainage facilities and fire hydrants, and regarding rubbish and debris being inappropriately stored and disposed of. Some of the figures bandied around for the works being done are three times the market value; they are excessive. I encourage the Government to continue the excellent work, to listen to the results of the consultation, and to implement the proposed measures as quickly as possible.
Noah Law (St Austell and Newquay) (Lab)
I thank my hon. Friend the Member for Rushcliffe (James Naish) for securing this important debate. I am sure he will be much thanked by my residents in Gainsborough Park, Fir Hill, Glenleigh, Roseveare, Buckler Village, and the Old Rectory Mews, for raising the issues that they raise with me—the 10% commission being prime among them. That commission is not simply a financial burden, although on a modest park home it can result, as we have heard, in tens of thousands of pounds’ worth of fees at the very moment when a resident is most vulnerable. It also reinforces the structural imbalance of power that we have heard so much about today.
I want to add another issue into the mix: council tax. A tax that we know is regressive at the best of times, it has caused a lot of confusion and distress for residents in my constituency who have faced incorrect council tax bandings on their homes and, separately, site owners being charged council tax on empty pitches, which creates knock-on pressures for other residents. The council tax system, as currently designed, simply does not map well on to the park homes tenant model. That is creating real hardship and confusion for my constituents and deserves attention alongside the commission question.
I say to Ministers that the case for reform is already well established. Residents now need action. I am very glad that the call for evidence has been renewed. I encourage all my residents to submit. We must recognise that park homes are a valued part of our housing stock. The people who live in them deserve the same protections, recourse and security that we would consider a baseline anywhere else in the housing market.
Mr Joshua Reynolds (Maidenhead) (LD)
It is a pleasure to serve under your chairmanship, Sir Alec. I thank the hon. Member for Rushcliffe (James Naish) for securing the debate. We have discussed these issues multiple times on the all-party parliamentary group on park homes, of which he is also a member.
Park home residents are often the forgotten home owners in our housing system. In this place we rightly discuss leaseholders, renters and first-time buyers, but we almost never talk about the 160,000 people who own park homes in England, four in five of whom are over 65. The quiet injustice that they have faced for many years is overwhelming. These people are overwhelmingly older residents, and most of the time are on fixed incomes. They choose this way of life, in park homes, because it is settled, affordable and within reach, when so much of the rest of the housing market is not. They pay their site fees and maintenance charges, and keep their homes in good order, often for decades.
The hon. Member for Scarborough and Whitby (Alison Hume) talked about the issues with the agreements— eight months or 12 months—when people buy their homes. One reason for those issues is that when people buy their park homes, they are often told, “Don’t worry about conveyancing or solicitors. You don’t need that. It’s not important.” They would never have been told that if they bought another property, but that is okay when it comes to park homes. That is where quite a lot of the issues, including those faced by the hon. Lady’s constituent, come from.
When people come to sell their park home, the law steps in and takes 10% of the sale price—not the gain or profit, but the price. That is handed straight over to the site owner. That is not for services rendered at the point of sale, for an obligation that has been discharged, or for anything that we as Members can quantify and put our fingers on—or that the industry itself can explain—but just because they are selling their park home. For most park home owners, selling is not a choice, but a last resort: they are downsizing and moving closer to relatives, or, in quite a lot of cases, they are going to pay for care costs that age has made unavoidable.
At the precise moment when every single penny matters most, the system reaches into their pockets and takes a 10% slice. On a £300,000 park home, that is £30,000, but many park homes in my Maidenhead constituency go for upwards of £500,000, £550,000 or £600,000. That is a massive amount of money. It could pay for a lot of years of social care, but it is being taken out of the system—being paid for now by our local authorities—because of that 10%. That can determine whether someone dies in dignity or experiences difficulty at a time that should be secure.
I have at various times called the 10% commission unfair and illogical, and I stand by that. It singles out one group of home owners for a deduction. No leaseholder, freeholder or shared owner would ever tolerate that.
I agree with my hon. Friend’s point about sales commission charges. Given that we had a consultation into park home sales commission charges in 2022, which concluded that there was no good justification for them, does he agree that what we now need from the Government is not another a consultation, but a fixed timeline so that we can understand when real action will be taken on behalf of our constituents in park homes?
Mr Joshua Reynolds
My hon. Friend is completely right. Park home residents have had consultation after consultation over many years. Site owners will respond to the current Government consultation, because they have lawyers to back them up and support them in putting in their thoughts, but the park home owners I have spoken to worry that there is no point in submitting responses to yet another consultation when, as they see it, nothing is going to happen. I worry that far fewer park home owners will respond to this consultation, and we will therefore end up with a one-sided consultation.
Peter Swallow (Bracknell) (Lab)
I thank my constituency neighbour for giving way. As he knows, there are many park homes across Bracknell Forest, which we both represent. I understand the scepticism that some have expressed about the call for evidence, but as he has identified, the Government need to put forward something that can stand up to those with very expensive lawyers behind them. Will he therefore take this opportunity to urge everyone who lives in a park home, whether in Bracknell Forest or elsewhere across the country, to contribute to that call for evidence, so that the evidence base can be as robust as it needs to be and we can abolish the 10% charge?
Mr Reynolds
I thank my constituency neighbour for that point. It is incredibly important that everybody responds to the consultation, so we must encourage more people to do so.
The financial cost of the 10% commission is only part of the story. We have heard time and again about unscrupulous site owners who have used intimidation to drive residents off their pitches. There are fewer bad actors who own sites than there were a number of years ago, but some still know that if they intimidate residents and force a sale, they will get a 10% commission. We see that time and again. In my constituency, one owner bought a site for £200,000. They then intimidated countless park home residents, who sold their properties, and made that £200,000 back within less than 12 months. That is the business model of unscrupulous site owners. We need to think about where the 10% commission came from. It has not always been 10%: it was 15% a number of years ago, so it is an arbitrary number.
I pay tribute to Sonia McColl OBE and the Park Home Owners Justice Campaign. Over decades, she and the campaign have done what many in this place only wish we had been able to do. They secured two legislative changes: ending sale blocking, and shifting pitch fees from RPI to CPI, which the hon. Member for Christchurch (Sir Christopher Chope) spoke about. Sonia and the Park Home Owners Justice Campaign have driven lots of the work that is happening here. Another petition is going to Downing Street later today. I was lucky to be able to present one to Downing Street last year, and I know that many of us are willing to submit them in future.
We need to be honest about what we are going to do. There is a consultation on the table, but lots of residents have been consulted before. I ask the Minister for a clear timeline for when we will see action, when we will have a conclusion with published responses, and when the 160,000 residents will get the fair deal that has been promised for so long but postponed for much longer.
It is a pleasure to serve under your chairmanship, Sir Alec. It is a pleasure to see so many Members in this debate. It is always ominous to have my Deputy Chief Whip, my hon. Friend the Member for South West Hertfordshire (Mr Mohindra), sitting next to me in a debate—I do not know whether that is an expectation of great things or a sign that there will be a meeting without coffee. Might I say that he made a very, very good speech? I hope the Minister takes it on board.
In all seriousness, I thank the hon. Member for Rushcliffe (James Naish) for securing this debate on Government support for park home owners. He introduced the issue in a humorous way, but also in a very serious, constructive way. I understand that he has a busy day, as he is also introducing a ten-minute rule Bill, which is a testament to the way he represents his Rushcliffe constituents. I suspect he will also have a very busy evening.
The hon. Gentleman is right to bring up this issue, as about 159,000 people live in mobile or park homes across 1,800 sites. We all recognise that park homes present themselves as an attractive choice for some people, and are therefore an important part of the national housing market.
Colleagues across the House have made excellent speeches, but I would like to mention a few from Conservative Members. My hon. Friend the Member for South Shropshire (Stuart Anderson) said that everybody would automatically pick a park home site in South Shropshire, but I politely disagree. Given that we have the beautiful Solent on the south coast, I suspect that many people would choose one of the many park home sites in my Hamble Valley constituency.
My hon. Friend the Member for South West Devon (Rebecca Smith) rightly mentioned fuel costs, which came up throughout the debate. I will come to that in a minute, and I hope the Minister will expand on that. She spoke about planning enforcement and raised a specific case, and it important that we get that right. My right hon. Friend the Member for Herne Bay and Sandwich (Sir Roger Gale) mentioned the lack of expertise in local planning authorities.
My hon. Friend the Member for Christchurch (Sir Christopher Chope) has done a huge amount of work in this space. In the last Parliament, I was delighted to co-sign his Bill, and I was pleased that the previous Government backed it. My right hon. Friend the Member for Tatton (Esther McVey) spoke about the huge problems that many park home owners face. My hon. Friend the Member for South West Hertfordshire mentioned the sporadic nature of maintenance on sites across the country.
The hon. Member for Rushcliffe is absolutely right to bring this important topic to light. Park homes are an often overlooked part of our housing sector that provide a comfortable living space and a community-oriented way of life. They are particularly valued by our older members of society, who have worked hard and deserve suitable protections and support. I think all of us here can agree that home ownership brings with it not just a sense of accomplishment, but an expectation of security and peace of mind, yet for many park home residents that expectation is not always met, particularly when their home sits on a site run by an unscrupulous operator. We have a duty to ensure that someone who has invested their life savings in a home does not find themselves facing unpredictable costs or unclear rights.
I am proud that the last Government recognised that more had to be done to protect park home owners’ rights and to support residents’ awareness of both their rights and the responsibilities. After a thorough review of the mobile or park homes legislation, the previous Government—this was mentioned on both sides of the Chamber—brought forward legislation to make it a legal requirement for a site owner or manager to demonstrate that they are a fit and proper person to manage a mobile home site. Too often, park home residents have been asked to pay significant sums, only to find that site maintenance falls short of what they have every right to expect. That is not just disappointing; it is fundamentally unfair. If operators are to charge those fees, they must also meet their clear responsibility to keep sites safe, well maintained and fit for purpose.
As I mentioned, my hon. Friend the Member for Christchurch promoted the Mobile Homes (Pitch Fees) Act 2023. That delivered important economic relief for park home residents. Changing the basis for pitch fee increases from the retail prices index to the generally lower consumer prices index ensures that annual rises are more proportionate and fairer. That change had long been called for by the Park Home Owners Justice Campaign.
Many Members across the Chamber raised the issue of the 10% commission on the sale of a park home. The last Government began the important process of researching the potential impact of a change to the maximum commission paid on such a sale. I am watching with interest this Government’s efforts to look in greater detail at commission payments and I hope that the Minister will look at that with great scrutiny—I know that he will, given the way he conducts himself. We look forward to seeing what the Government come forward with.
A burden that park home owners face—this genuinely is not a political point, as my party looked into the issue when we were in government, and it was apparent that there was no straightforward fix—is that they are often among the hardest hit when it comes to energy costs. That is largely because many do not have the freedom to choose their own energy supplier, leaving them more exposed to higher prices and less competitive markets. I note that towards the end of last year, Ofgem reignited efforts to look into this issue through a call for evidence on the rules around the resale of gas and electricity and the maximum resale price arrangements. The issue was last reviewed in 2001, so I look forward to looking into the findings when they are published.
We must recognise that energy costs for park home residents are not shaped only by resale arrangements. Unlike households on the mains gas and electricity network, which benefit from the energy price cap, many park homes rely on heating oil or liquefied petroleum gas to heat their homes and water, so I welcome the Government’s commitment of £53 million to support households reliant on heating oil, in particular low-income families, who are most affected. It is right that support is targeted where need is greatest. I note that in England, that funding will be delivered through local authorities via the crisis and resilience fund, which came into effect on 1 April. However, I remain concerned that there is still no clear confirmation as to whether park home residents will be eligible for that support. Given the specific vulnerabilities that they face in relation to energy supply and pricing, I hope that the Minister will be able to address that point directly in his response this morning.
We have seen how difficult it can be to ensure that people off grid actually receive and benefit from funding support. That was a lesson learned in 2022, when similar measures to support similar groups were brought in after the shocks from the start of Russia’s illegal invasion of Ukraine. I hope that the Minister will commit to monitoring the efficiency of funding distribution.
Members here today, particularly the hon. Member for Rushcliffe, outlined several issues that park home owners face and the importance of them receiving the appropriate Government support. Supporting park home owners is about providing more protections and security for the residents who live in these communities, and supporting the wider housing market. It requires cross-party support—something that as a shadow Housing Minister I commit to providing when the Government come forward with their proposals. The Minister gave me a wry smile, but it is now on the record that if the Government come forward with sensible proposals to tackle this issue, then on a cross-party basis we will look at that seriously. It does require cross-party support, and I look forward to hearing from the Minister about how the Government plan to provide continued and accelerated support, so that park home owners across the country, including in my constituency of Hamble Valley, get the services they deserve for the money they have saved.
It is a pleasure to see you in the Chair, Sir Alec. I congratulate my hon. Friend the Member for Rushcliffe (James Naish) on securing this important debate. I thank all other hon. Members who have participated, and like many of them I welcome the strong cross-party nature and tone of the debate. I have valued the opportunity to hear the individual stories hon. Members have shared, including some really egregious examples of harassment and intimidation, such as the case of Dennis, which was mentioned by my hon. Friend the Member for Scarborough and Whitby (Alison Hume).
One challenge in considering law and policy in respect of park homes is the huge variation in arrangements across the approximately 1,832 sites in England. The more real case studies that can be brought to the Government’s attention, the greater rigour we can bring to policy development.
Despite representing less than 1% of housing stock, the park home sector is an important part of the housing market. Mobiles homes, as has been mentioned, provide housing for around 160,000 people, some of whom are among the most vulnerable in our society. As hon. Members are no doubt aware, park home sites are often advertised on the basis that they offer a luxurious, secure and supportive lifestyle, particularly for older people. In many cases, that is true, and it is important that several hon. Members, including my hon. Friend the Member for Lancaster and Wyre (Cat Smith), mentioned that there are some great park home sites. Unfortunately, as the debate has powerfully reinforced, the experience of many park home owners is far removed from that idyllic vision.
I am unlikely to be able to cover all the points raised in this wide-ranging debate in the time available, but let me ensure that I at least cover the two main issues raised: site licensing and enforcement, and the commission payment. On licensing and enforcement, the Caravan Sites and Control of Development Act 1960 provides the foundational legislative underpinning for the site licensing regime operated by local authorities. The primary purpose of that regime is to ensure that sites are set up in the right places, which is why site owners are required to obtain planning permission to operate land as a caravan site. Unless a given site is exempt from having one, it will require a licence after planning permission has been granted, with relevant conditions attached by the local authority. The requirement for a licence is designed to ensure that sites and the amenities on them are properly maintained and kept safe for residents and other users.
The wide-ranging Mobile Homes Act 2013, introduced changes to the procedures and penalties for enforcement of site licence conditions on residential parks. The new site licensing system, subsequently brought into force in 2014, gave local authorities substantial enforcement powers, including the ability to issue compliance notices and the discretion to refuse to grant or transfer applications. It also provided local authorities with powers to charge annual fees, to provide the resources they need to carry out their functions.
Since 2021, there have been additional requirements for all site owners to be assessed by the local authority and placed on a local register of fit and proper persons. I commend Peter Aldous, a very valued former Member of this House, for the private Member’s Bill he took forward on that issue. A person can be included on the register, with or without conditions, for up to five years, and local authorities can charge fees to cover their functions in respect of the fit and proper person test. Taken together, those measures provide a robust range of powers for local authorities to draw on, and the Government expect them to be used effectively to ensure that sites are well managed by competent persons.
At this point, I want to acknowledge the commendable work done by individual local authorities over the years, as well as the notable successes some have had in ensuring that sites are well maintained and in successfully prosecuting non-compliant site owners. However, my Department is aware that some local authorities do not apply or enforce existing legislation as effectively as they could and should. There are a variety of reasons for that, including cost and, on occasion, lack of expertise, but in some cases local authorities might simply decide not to take appropriate enforcement action. I therefore encourage residents who have concerns about health and safety on their site to raise them initially with the local authority if the site owner fails to address the problem. They can then consider escalating the matter to the Local Government and Social Care Ombudsman if their local authority does not deal effectively with their complaint.
Turning to the commission payment, the 10% commission fee charged on the sale of park homes has been the subject of intense debate over many years, as we all know. Park home residents see it as an unfair and unjustified charge that has a negative impact on their finances and mobility. Site operators argue that the commission is a vital part of their income and that a substantial reduction in the commission rate would reduce total income without reducing expenditure, thus threatening the financial viability of parks. That important point was raised by the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale); there are many elements of this complex problem.
I fully understand hon. Members’ desire to secure change in this matter, and I assure those present that I share their impatience. Unfortunately—this is where I have to take issue slightly with the hon. Member for North Shropshire (Helen Morgan)—research undertaken by the previous Government was not conclusive on either the purpose of the commission or the impact of its removal or reduction. The final report, published in 2022, recommended further work to clarify the rationale of the commission so that the Government can make informed policy choices. In 2023, the then Government sought feedback from stakeholder representative bodies on the report’s recommendations. The feedback reinforced the view that there was no clarity or consensus in the sector on the rationale for the commission.
We are not consulting for consultation’s sake. There is a reason the Government published a call for evidence on 5 March this year concerning the rationale for the commission payment. Through that call for evidence, we are seeking to understand the following: the reasons for charging a commission before it became a statutory requirement in 1975, and whether those reasons have changed; what goods and services are paid for by the commission; how the commission rate is calculated to be a percentage of the future sale price of a park home; how the commission payment relates to other charges in the sector; and how receiving commission in the future enables site owners to meet their obligations effectively and efficiently.
To date, we have had 400 responses from park home residents. I encourage residents and site owners across the country to engage with that call for evidence before it closes on 29 May. I encourage all hon. Members here to tell their constituents about it so that we can get the maximum amount of evidence submitted. Then we can properly consider what, if any, changes are needed to the payment of a commission, what the options are and how they would impact on the sector.
Mr Joshua Reynolds
Many park home residents in Maidenhead have told me that complete swathes of the consultation are not relevant to residents but are to site owners. Can the Minister clarify which questions he expects residents to be able to respond to, because many feel that those questions are just not relevant to them?
I am sorry to hear that feedback. We will take into account any feedback that park home residents wish to submit—even in general terms and outside the strict questions they have responded to—when we are making policy decisions. I emphasise once again that I want the widest possible response from across the country that grapples with the complexity and the particular arrangements in place on specific sites so that we can make informed choices.
I want to come on to the timeline, because several hon. Members have pressed me on it. Following an assessment of the responses received, we will publish a summary of them in the summer. I intend to outline our final position at the very latest by the end of this year. To respond to the right hon. Member for Tatton (Esther McVey), it is one of many priorities—but a very real priority—for the Government to bring the clarity that both park home residents and site owners require and have been calling for now for some years. I will strain every sinew to ensure that that happens as early as possible, but I give the commitment that we will have clarity on the position by the end of the year.
Hon. Members raised a series of other matters, including written agreements, contractual rights, conveyancing, the adequacy of existing redress mechanisms in respect of pitch fees, overcharging in relation to utilities, and harassment by site owners. I assure them that the Government either have taken action or are exploring action in a number of those areas. That might take a range of forms, such as raising awareness about the protections and enforcement mechanisms that already exist or providing further guidance. We are taking some very real steps, not least in respect of utilities, which I want to speak to briefly.
When the Minister kindly came to the APPG on park homes, he heard from Nat Slade, the environmental health officer for Arun district council, about the issues he faces and the need for urgent action on complex ownership structures, which was first promised in 2017. Where is that on the Minister’s agenda?
I will address that point before sitting down, but I want to briefly touch on utilities. As resellers of electricity or gas, site owners must comply with the maximum resale price provisions, which prevent them from reselling energy at a higher price than they paid. There are other protections in place for residents, including the right to ask for documentary evidence to support any demands for charges. Where a resident has been overcharged, they can recover those amounts through a small claims court and may also receive interest on the excess charge.
However, it is evident that the rules and how to enforce them are not always well understood in the sector. To further empower residents, I have tasked my officials with working with the relevant Departments to raise awareness and, if necessary, to make additional guidance available. As the shadow Minister, the hon. Member for Hamble Valley (Paul Holmes), noted, we are also taking steps to ensure that residents are protected by the rules already in place. In October, Ofgem issued a call for input to assess whether current arrangements under the maximum resale price provisions remain fit for purpose, ensure fair pricing and protect customers.
Before I conclude, I will take up the point raised by the hon. Member for Christchurch. Despite the legislation that has been introduced over the decades, which was designed to address widespread malpractice and poor standards in the industry, we know that problems remain. We recognise that more needs to be done to further strengthen protections for park home owners, to improve park home site management and to support local authorities to bear down on unprofessional site owners. To that end, we do keep existing legislation under review. I am more than happy to meet the hon. Member for Christchurch (Sir Christopher Chope) to discuss complex ownership structures, in particular, and what they do in terms of the management of sites. However, I want to make it clear to hon. Members that legislation is effective only if it is used and enforced effectively. The Government want to see more robust enforcement by local authorities against unprofessional site owners and will continue to work with site licensing officers to raise awareness of their responsibilities and to share good practice.
Responsible site owners have a role to play in building stronger relationships with residents and local authorities to tackle the unfair competition from unprofessional site owners. We also want residents to better understand their rights and to feel empowered and confident enough to enforce them, without fear of site owners or local authorities. We will continue to engage with national residents associations and encourage residents to contact LEASE, the Government-funded Leasehold Advisory Service, for advice about their rights.
There are no quick fixes when it comes to improving the lives of park home residents, but I look forward to continuing to work with hon. Members across the House as we seek to do so. Because such a wide range of issues has been raised, I commit from the Dispatch Box to write to all colleagues—perhaps in a “Dear colleagues” letter—setting out precisely what the Government are doing on all the issues I have not had time to cover.
James Naish
I thank hon. Members for joining the debate. We have covered the whole country—from the south coast all the way up to parts of northern England and to Northern Ireland, which of course has slightly different legislative foundations—and I am really pleased there has been such strong representation. I thank the Minister for outlining the timeline on the commitment towards the end of the year, and for providing clarity to park home owners.
Three things have come up repeatedly: the security that park homes provide, the need for greater transparency and ultimately the word that has been repeated by so many Members, which is “fairness”. With the Minister’s support, I hope we can make progress over this Parliament to ensure that park and mobile home owners have that fairness. I look forward to seeing the moves the Government make over the coming months.
Question put and agreed to.
Resolved,
That this House has considered Government support for park home owners.