Sale of Park Homes

Debate between Conor Burns and Annette Brooke

Thursday 30th October 2014 Commons Chamber

[Annette Brooke]

The 10% commission has wide-ranging impacts and they need to be considered. It is only now we are hearing about some of those impacts, as the voices of park home owners grow louder. If we had a review, their input would be vital.

Given that the commission is an unpredictable income stream depending on how many units are resold over a period of time, the question remains of whether it is a windfall gain or an essential source of money for site improvements. It is very difficult to answer that question without a review.

The Mobile Homes Act 1975 limited the commission to 15% and the Mobile Homes Act 1983 limited it to 10%. Is it not time to have a proper independent review to establish whether the current situation is justified or whether there is a case for a change? I am absolutely sure there is a case for more transparency.

[Conor Burns (Bournemouth West) (Con)]

I was delighted to support my right hon. Friend’s application for this debate. She knows that there are a number of park homes in the north of my constituency. I thoroughly endorse all the points she is making. Put simply, she is sensibly and correctly asking for a review—a very modest request—and I have noticed the shadow Secretary of State, the right hon. Member for Leeds Central (Hilary Benn), nodding in agreement with some of her remarks. She is approaching the issue in a sensible way and I hope the Minister, when he responds, will grant that review, which would be welcomed by all.

[Annette Brooke]

I thank my hon. Friend and constituency neighbour for that intervention. Obviously, we are mutually aware of the issues that occur on the park home sites in Poole, Bournemouth and Dorset.

In 2012, the Communities and Local Government Committee concluded in favour of retaining the 10%, but did we have the review I am asking for? I do not think we did, because the sequence of events shows that the Committee relied heavily on the conclusions of a 2006 Government consultation published in 2007, which in turn relied on a report published in 2002. National associations for park home owners feel that the 2007 conclusions were heavily biased towards site owners and their trade bodies. I believe that, in total, there were only 1,250 responses to the consultation. I would be interested if the Minister could confirm that. If we had a consultation today, I think the response would be very different. I believe the responses came from only 230 parks, which is a limited number.

The park home associations did not accept the conclusion that the majority of park home owners wanted the commission to remain. Questions have also been raised with me about the independence of the 2002 report. It is only in recent years that individual park home owners have made their voices heard in very large numbers and accessed democratic processes via petitions and lobbying, led by my amazing constituent Sonia McColl and others, complementing the work of their excellent national associations, including the National Association of Park Home Residents and the Independent Park Home Advisory Service. The situation is different from 2006. Our park home constituents are aware of their rights and know how to make their voices heard, but we as MPs need to respond.

We need a review that looks at the viability of the industry and that listens both to site owners and to park home owners. I do not prejudge the outcome of any review. It might conclude that the situation is best left as it is, but with openness, fairness and transparency to ensure no bias either way, all parties will understand the conclusions.

Interestingly, I have looked at what has happened in the Welsh Assembly. Following a short debate in July 2014, it agreed to review the data and evidence contained in the 2002 publication “Economics of the Park Homes Industry” and the 2006-07 consultation. A review has been undertaken and the Assembly awaits the report. This month, the Minister for Communities and Tackling Poverty wrote in a letter:

“I feel a further review of the economics of the mobile homes business is necessary before a decision on amending the 10% commission rate can be considered. I do though feel the Mobile Homes (Wales) Act 2013 needs time to be embedded before a further review is conducted. It is, therefore, my intention to commission further research into the economics of the park home industry and the implication of amending the commission rate, in late spring 2015.”

I do not think we should be embarrassed about following the lead of one of the devolved nations.

I would like to see the review process started shortly in England, with the setting of the terms of reference, the processes for looking at the economics of the industry and the commissioning of a study. Detailed consideration of the retention or alteration of the 10% could be dovetailed a few months later into a review of relevant aspects of the Mobile Homes Act 2013.

I emphasise that I do not want unintended consequences that would increase burdens on vulnerable people on low incomes with increased pitch fees. I want a viable park home industry, but I also want to be sure the system is fair to park home owners. The review process should start sooner rather than later.