Park Homes

Debate between Annette Brooke and Mel Stride

Thursday 16th December 2010 Commons Chamber

[Annette Brooke]

There was an enlightening presentation on the future tribunal service at the mobile homes all-party group. We were reassured that the process should not cost a great deal of money for the ordinary person and that the cases and outcomes would be published. It would be extremely useful if those were published on the internet, because that would provide evidence for the next stage of legislation. My main concern is that the right to go to a tribunal will not solve the fundamental problems, because potential purchasers will just disappear when the difficulties are raised.

[Mel Stride (Central Devon) (Con)]

I thank the hon. Lady for her great generosity in giving way to so many hon. Members in such a short space of time. The current court process can be prohibitively expensive and many unscrupulous site owners delay in the courts to thwart those who are pursuing them. Does she agree that it is fundamental and vital that the tribunal processes cases swiftly and mediates without delay in all cases?

[Annette Brooke]

The all-party group made that point clearly and we will monitor the issue. We do not need to wait for the Select Committee to do so.

I shall return to the example that I was giving. We went to the police, because it is a case of fraud. There were enormous difficulties in getting the police to accept that it was not just a civil matter. We now have a clear understanding with Dorset police and matters have moved forward. The case was eventually taken up, although not wholeheartedly. It was not pursued by the Crown Prosecution Service. Even though there are clear examples of fraud, it is difficult to deal with them as such.

I have been putting the case for long enough. I commend the motion to the House so that we can achieve justice for park home owners.

--- Later in debate ---

[Mel Stride (Central Devon) (Con)]

I support the motion and, like many other Members, I congratulate the hon. Member for Mid Dorset and North Poole (Annette Brooke) on moving it.

As my hon. Friend the Member for Gloucester (Richard Graham) pointed out, there are many park home sites up and down the country and many park home owners. In England alone, there are 85,000 park home owners, spread across 2,000 sites. In the main, as the hon. Member for Eastbourne (Stephen Lloyd) eloquently stressed, the sites are run well; they are good places to live. Park homes are comfortable and relatively easy to maintain. They are relatively low cost and affordable. Most of them—certainly those in my constituency—are in pleasant locations. They are nice places to live. Whether park home sites are well or poorly run, they have a strong sense of community.

On a minority of sites, residents face many great problems. In my constituency, the spectrum of problems ranges from sites that are somewhat poorly managed to those where there are blatant breaches of health and safety regulations, many along the lines highlighted by the hon. Member for Ellesmere Port and Neston (Andrew Miller). In my constituency, at the uglier end of the spectrum, there are examples of intimidation, particularly of vulnerable and elderly people. Intimidation often affects the mental health of elderly residents and can, on occasion, result in great financial loss, as we have heard from many Members this afternoon. I echo the comments made by many Members, and congratulate Sonia McColl on her justice campaign, on pressing so firmly on this important issue and on the work and energy that went into arranging the lobby of Parliament on 3 November.

There are a number of challenging issues, many of which have been raised this afternoon, relating to the operation of park home sites. We have heard much about the importance of the approval of the buyer stage, when an unscrupulous park site owner can put people off and use the rules to make sure that the park home owner does not achieve fair value for their property. In 1990-91, a Department of the Environment survey showed that 25% of park home owners expected problems with the sales process in the future. Of that 25%, some 51% felt that the site owner or the owning company would be the cause of the problems.

Mrs McColl is particularly keen that the approval of the buyer stage should take place in the presence of a solicitor or at a solicitor’s office. I think we should be slightly cautious here, because I am not convinced that that requirement, in and of itself, will solve the problem, and it will add to the cost of the transactions. But where a wrong has been done there should be quick redress at low cost, and substantial damages should be available to those pursuing unscrupulous site owners.

The second area of sale that I wish to address is that of what I would term the forced sale, in which the unscrupulous site owner intimidates and pressurises a resident off the site. The reason for that is clear; as many hon. Members have said, once that home is gone, perhaps a larger home can be placed on that site and profits will follow. My understanding is that some of the problems relate to the Mobile Homes Act 1983, whereby site owners can sometimes claim that an existing home has a detrimental effect on the amenity of the site. That point was raised by Shelter, whose mobile home unit looked into the issue. I therefore urge the Minister to pay careful attention to that aspect of the Act.

Several hon. Members, including my hon. Friends the Members for Waveney (Peter Aldous) and for St Austell and Newquay (Stephen Gilbert), have raised the issue of sales commission on park homes that are sold. I know that many park home owners feel it is inherently unfair to have to pay 10% of the value of their property on sale. They will argue that the site owner may have contributed nothing to the sale, and in many circumstances the owners of those homes have enhanced them at their own expense, adding to their value.

We should proceed with caution, however, because in order to make a profit a park home operator will look at all the revenue streams that go into the business, of which commission on sales is but one. It is quite conceivable that if that were reduced or removed, pitch fees would be higher, as the consultants Berkeley Hanover suggested in its 2001 report. It suggested that pitch fees might go up by 20% to 32% if commission was removed altogether. It is the case that where commissions have been reduced in the past from 15% to 10% due to legislation, there has been evidence that pitch fees have increased.

The second danger of removing commissions is that it might inflate the price of what at the moment are relatively—I stress, relatively—affordable homes, and that would be a detrimental move. It is very important that we keep the up-front affordability of these homes for individuals who may wish to buy them in the future. Indeed, the Shelter report did not recommend any reduction in the commission rate.

Several hon. Members have spoken about site conditions and licensing. Licensing was introduced under the Caravan Sites and Control of Development Act 1960, which gave local authorities the ability to impose conditions on site licences, and also the power to enforce those conditions. But it did not confer on local authorities any duty to enforce conditions on recalcitrant site owners. Those conditions, on which enforcement action can be taken, would include requirements not only on the spacing of the homes across the site, for example, but on the provision of—sometimes vital—amenities on the site. So it is very important that the Minister looks closely, as I am sure he and his colleagues are doing, at licensing and whether we should make it a duty of local authorities to intervene where there are significant breaches of those licences.

We should also look closely at local authorities’ right to refuse or revoke the site owner’s licence if there is good cause, as my hon. Friend the Member for Isle of Wight (Mr Turner) said. In those circumstances, if there were a revocation, we would need to ensure that the local authority had a clear strategy for providing the services and ensuring that the site continued to run in a safe, decent and reasonable manner.

I urge the Minister to look at giving local authorities the ability to take emergency remedial action when things do not happen appropriately on a site, and to charge the site owner for any remedial action that is taken. Local authorities could be given the authority to charge for licences to cover some of the costs of them, and, when there are appeals in the system on such matters, they might be handled by the residential property tribunal.

Much has been rightly said in this debate about the fit and proper person qualification, which was a strong recommendation of the park homes working group. There is no doubt that the park homes business is distinctly different from many others. It is not like running a shop or a pub, whereby, if one is rude to customers or runs the business badly, one can expect to see profits diminish and to go out of business. Site owners effectively have captive consumers and people whose lives they can and, as we have heard in many instances this afternoon, do make a misery.

Given how the economics of the business work, we should not be surprised by such abuse. There is a premium to be gained by bullying people and by pushing somebody out of their home inappropriately, because there are profits to be made as a consequence. The whole market has built into it the dynamics for abuse of one form or another.

I know that the Housing Minister is thinking about the issue very carefully, but I urge the Minister before us to consider seriously a fit and proper person qualification. One objection to the approach is that it might be complicated and difficult, but we already apply it to people who own houses in multiple occupation, so some local authorities already have experience in exactly that area.

Some Members, including my hon. Friend the Member for New Forest East (Dr Lewis), have said that residents associations have been quite effective in dealing with difficult situations on park home sites, and I welcome the Mobile Homes Act 1983 (Amendment of Schedule 1) (England) Order 2006, which permits such associations to be set up and, indeed, requires site owners to recognise them, subject to certain conditions, including one whereby more than 50% of residents on a site must become members. The Government would do well to encourage at every turn, with whatever legislative changes they bring in, such residents associations and to give them authority wherever they possibly can.

[Annette Brooke]

I should like to report on some further good practice by Purbeck district council, which has set up a forum for park home owners, so that they can go and share their issues. That is a very good way of backing up residents associations.

[Mel Stride]

I thank the hon. Lady for that helpful and informative intervention. I am grateful and pay tribute to Buckingham Orchards Residents Community Association in my constituency, which has done a great deal and fought hard to improve conditions on its site. I shall certainly take the hon. Lady’s suggestion of a forum and such activity to that association to see whether it might benefit from that.

Finally, dispute resolution at the moment typically means going through the county courts, and doing so not just at great expense, but often in the face of numerous delays, because unscrupulous site owners are adept at stringing things out and making things difficult at every turn. We have all heard the stories in which site owners fail to turn up, give a reason and there has to be a re-hearing. They just wear people out, which is why I particularly welcome the Government’s commitment to a residential property tribunal. However, it is absolutely essential that such a tribunal is quick to deal with grievances, that there is a minimum of delay involved and that it is not expensive to use. On 14 July, in referring to residential property tribunals, the Minister for Housing stated:

“This will mean that park home residents will be able to take action to resolve disputes with site owners, without being restricted by the prospect of facing large legal costs.”—[Official Report, 14 July 2010; Vol. 513, c. 28WS.]

That is absolutely critical. We are dealing with people who are among the least advantaged in our society and cost must be driven down to give them a route to justice.

We should also toughen up on fines and give the tribunal real teeth. At the moment, a breach of a site licence carries a maximum fine of £2,500. In many cases, that is simply not enough to deter the kind of activity that we have been debating this afternoon. I urge the Minister to consider whether there should be an escalation of fines for repeat offences, because we are aware that some site owners do the same things over and over again. Those people should be penalised more heavily each time around.

Many of the things I have raised and that other hon. Members have touched upon may not be achieved simply through secondary legislation. We may need primary legislation. I hope that the Government and the Minister have the political will to ensure that the time required to push forward these changes is made available. We need to act to remove the last refuge of Rachmanism in this country, because that is what we are dealing with; we need to act to stand up for the vulnerable and the elderly who suffer in the circumstances that I and many others have described; and we need to act for the many self-reliant, proud and decent park home residents, who ask nothing more than that they are treated with fairness, dignity and respect.