Baroness Hanham
Main Page: Baroness Hanham (Conservative - Life peer)(12 years, 1 month ago)
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The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)
My Lords, I believe I can say without risk of being challenged by anybody at all, that this is a debate, perhaps unusually, for the noble Lord and myself, where there is absolutely no disagreement at all.
Baroness Hanham
We all welcome this legislation, and we will look forward to it when it gets to this House. As did other noble Lords in this debate, I pay tribute to the All-Party Parliamentary Group on Park Homes, which has raised the profile of the sector in Parliament and beyond. Absolutely crucial to that has been the noble Lord, Lord Graham of Edmonton. He may not remember, though I do, that as a rather new and very wobbly Front-Bencher, I took forward one of the many debates that he organised in this House, about 10 years ago. I remember that well, and I remember being persuaded by what he said, that here lay a big problem. It is a pity that it has taken us 10 years to get here, but here we are.
A number of noble Lords have mentioned my right honourable friend Grant Shapps. He grasped the situation when he became a Minister, and it was due to him that the residential tribunal was set up. It may not have had time yet to show all its teeth, but it is certainly starting to make an impact on this.
A number of important issues have been raised. I will try to deal with some of those; if I leave any out, then I will of course write to noble Lords. I also wish to comment on the Select Committee, which did an extremely good job, and to mention the Consumer Focus report, which absolutely confirmed the findings of the Select Committee.
As others have said, living on a park home site is an affordable choice of housing for many people. I have the figure of 85,000 households here—I do not think that we probably have much disagreement about that—and they are mainly elderly. It would also be fair to say that some or many sites are properly managed and maintained by decent, honest and professional site owners who look after the rights and the welfare of their residents and community.
However, the good work that they do is often completely masked by the unacceptable conduct of the minority—and we have had many examples of that today. They cause misery by not maintaining the sites properly, bullying residents, and interfering unreasonably or unlawfully when residents wish to exercise their rights, and their rights to sell—something that the noble Lords, Lord McKenzie and Lord Whitty, raised. The park homes sector should have no place for these people. We want the good site owners to thrive and we absolutely want the bad to wither and go away. We are therefore committed to targeted reform, which does not place unnecessary burdens on those site owners who operate in a well regulated and lawful manner.
The Communities and Local Government Select Committee’s inquiry received 250 pieces of written evidence and held four oral sessions in the spring, including one in Bournemouth at which it took evidence from home owners and site operators. As has been mentioned, the committee’s report showed that the catalogue of problems that people had been raising were a fact. It formed the view that malpractice was widespread. Many of the responses to the Government’s consultation, which ran from 16 April to 28 May this year, found that that was the conclusion. We received 621 responses, many of which corroborated the evidence to and findings of the Select Committee. The Government’s response has been published on the Department for Communities and Local Government website.
In the mean time, my honourable friend the Member for Waveney introduced, with government backing in the other place, a Private Member’s Bill for which reference has been made to reform the law on mobile homes. It may not cover all the points and aspects that everyone wants. Maybe during the course of its passage through one or other House it may be strengthened, but at the moment it is as it is. It received its Second Reading and will now proceed to its Committee stage. I understand that when it passes all stages—my brief says “should it”, but I am reasonably satisfied that it will do well—the noble Lord, Lord Best, will pilot it in this House. I am sure that he will have good support here as well.
I must emphasise that the Bill focuses on permanent residential sites and will not apply to holiday homes, even those where the residents live there for up to 10 or 11 months in a year, with just a month away from it. It applies purely to those sites that are residential where the home owners have agreements under the Mobile Homes Act 1983, including mixed-use sites such as those that are partly residential and partly holiday.
The provisions in the Bill relating to changes to the Mobile Homes Act will not apply to local authority traveller sites either because sale blocking is not in question on such sites, as sales are not permitted. But there was also no evidence that the other changes to site rules and pitch fees were required where ownership was in the hands of local authorities. I ought to say that I am quite glad about that.
The Bill’s objective is to put the park home business on a proper footing for the future, where honest and professional site owners can prosper, while those who abuse their legal powers and have no regard for the welfare and rights of their residents or their health and safety will no longer be able to profiteer. As we have heard, the Bill aims to achieve this by introducing light-touch reforms that target the worst practices, minimising the burdens on good operators. Through these measures, we hope that residents will be able to live peacefully in their homes, secure in the knowledge that their lives, health and safety will not be endangered and their rights respected. The Bill contains most of the key measures on which the Government consulted earlier in the year and builds on the Select Committee’s recommendations following its forensic inquiry into the park homes industry and its practices.
The noble Lord, Lord Whitty, and the noble Baroness, Lady Scott, referred to unlawful sale blocking, which was one of the most serious complaints. It is clear that the practice is not confined to a small number of rogue operators. In some parts it appears to be acceptable practice that the landlord should be able to put their foot down for a sale, but it is not acceptable practice.
Park home owners are as a matter of law entitled to sell their properties on the open market. However, also as a matter of law, the site operator must approve the buyer. To some this seems a sensible way of ensuring that the purchaser would meet the rules that apply to the site, for example on age, family composition or the keeping of pets. However, some site owners abuse this process to thwart a sale by not responding to the request for approval at all or by making contact with the buyer and putting them off proceeding.
Although there is a right of appeal to a residential property tribunal, which was brought in by this Government in 2011, if an approval has been unreasonably withheld, very few cases reach the door of the tribunal because the purchaser has normally withdrawn from the transaction by the time this happens. In fact, of the few cases that have been decided by the tribunal, in every case they found the site owner had acted unreasonably in not responding to the request or in refusing the approval.
As has been said, site operators are legally entitled to a 10% commission on the sale of a park home, so if one was sold for £80,000 they would be entitled to £8,000 of the sale price. The Government do not intend to interfere with that aspect. However, an unscrupulous operator realises that he can make significantly more than £8,000 by refusing to approve the purchase. Often if the home owner urgently needs to move or if purchasers are persistently refused, the home owner is forced to agree to sell. Indeed, we have heard today of some who have sold for as little as £2,000. No other form of home ownership sales is subject to such interference and abuse. I confirm that we fully support the measures in the Bill to restrict the role of site owners in approving buyers of homes from existing residents and to remove that role altogether in respect of future sales by new residents.
Allied to this is the strengthening of the criminal law against harassment and to make it a criminal offence to make false or misleading representations to prevent a sale from proceeding. There is also widespread concern that pitch fee increases lack transparency and unlawful charges are often included. The Bill addresses this by requiring site owners to set out in a notice precisely what is included in the proposed pitch fee and if this notice is not used the pitch fee review will be invalid.
Another major problem identified from the consultation and in the committee’s report is the condition of many sites and the poor quality of services and amenities to them because of either underinvestment over the years or, in some cases, a deliberate policy of allowing or causing whole sites or parts of sites to fall into disrepair. This was underlined by the noble Lord, Lord Graham, telling us about the site owner who had effectively wrecked one of the homes. The Bill will permit local authorities to address such problems through a more effective licensing regime that will enable enforcement action to be taken against those who do not keep their sites properly maintained. I am sure that local authorities that are affected by these problems will be only too happy to take up the cudgels.
The noble Lord, Lord McKenzie, asked whether there would be room for more and more legislation on this. I am sure he does not really expect me to answer that. There are people who make decisions about legislation other than me, but we will enthusiastically follow this Private Member’s Bill through from beginning to end.
Lord McKenzie of Luton
If the noble Baroness will forgive me, the question was that if there were scope, what would the Government be happy to support further in terms of primary legislation?
Baroness Hanham
My Lords, at the moment the Government support everything that was in the consultation. There are areas where we are waiting to see what happens as a result of the Bill’s implementation and further consultation; the fit and proper person test is probably one, but it is very much on the radar because it was brought up very significantly in the Select Committee report.
The noble baroness, Lady Scott, asked about the human rights aspect. We cannot take away altogether the site owner’s contractual right to approve, but we have in fact reversed the burden of proof. Refusal can be made only on certain grounds and only with agreement of a residential property tribunal.
Baroness Scott of Needham Market
I am grateful to the Minister for allowing me to intervene because I know that she is short of time. My concern about the way the Human Rights Act is being interpreted means that it cannot apply retrospectively. Current owners will remain vulnerable; only the new owners will have protection. I am very nervous for current owners, particularly as I fear a kind of bonanza where people will see this money-making opportunity drying up in the future. The situation could inadvertently become even worse for the existing tenants than it is at the moment.
Baroness Hanham
I am sorry if I misunderstood the point, but it is one that is extremely well made. As my noble friend says, the Bill is not retrospective, as indeed most legislation is not. Potentially, however, it will offer protection in a perilous situation. Unfortunately, there will be bad site owners until they are stopped.
The noble Lord, Lord Whitty, asked about fuel poverty. We are talking to DECC about the application of the Green Deal to park homes. However, as this is a Private Member’s Bill, we cannot connect them together. Someone may wish to try to strengthen the law as time goes on.
I think that I have dealt with the issue of the fit and proper person test as best I can, and as I say, there is going to be very much a watching brief on that. That probably covers most of the aspects that have been raised in our debate. I hope that I have made clear that we strongly welcome and support the measures in the Bill. They are indeed long overdue because too many people have been put in jeopardy for too long a time. I hope that the Bill will get as far as this House and that it will be passed unanimously in the other place. We will then have an opportunity to consider it—it is hoped in the not too distant future. A Private Member’s Bill will provide at least some protection for those who have been suffering for a long time.