Residents of Leisure Park Homes

Dan Poulter Excerpts

Wednesday 27th February 2019 Westminster Hall

[Helen Whately]

In general, we should look at what is happening in all parts of the United Kingdom to see what works best, and learn from it. I will refer to Wales in a moment, and no doubt the Minister will do the same.

I have already had conversations with the Minister on the issue. She is sympathetic and concerned, and is very much looking into it, which I appreciate. My first questions are whether she will consider extending the relevant parts of the 2013 Act to holiday home owners; whether she will consider introducing tougher penalties for unscrupulous holiday site owners to discourage them from acting in an exploitative way; and whether she will look at the fit and proper person test, which could be introduced in England for residential homes under the Act, and has already been introduced in Wales. Although the test is not perfect, it would be a step in the right direction, and would make it harder for a known unscrupulous landlord to get a site licence.

As well as introducing stronger rights and protections for the purchasers of holiday homes, we need to make sure that existing legislation is enforced. My understanding is that in England, the responsibility falls on local councils; the local council, for instance, should check that holiday home owners have another primary address, so that their holiday home is not their only and main address, and should also ensure that holiday home owners are not staying in their holiday home all year round.

It appears, at least in Maidstone in the case of Pilgrims Retreat, that my local borough council has not been doing those things, so the situation has been allowed to continue, not just for months but for years. It has built up, so that tens, indeed potentially hundreds, of people who believe they are residents are affected, even though the same local authority has been collecting council tax from these individuals, as if they were permanent residents.

The site licence at Pilgrims Retreat has been extended from 11 months to 12 months, which compounds the confusion of individuals seeking to buy properties there and live in them by giving them the impression that they can stay in these places all year round. I do not believe that my local council is alone in doing that.

Given the situation and the various ways in which individuals at Pilgrims Retreat have been let down, I welcome the fact that my local council is considering an amnesty for them and is trying to find ways to avoid making the residents—as they believe they are—homeless, because these properties are their only residence, and they have spent their savings on them; but in general, the situation should not and must not be allowed to continue.

If borough councils across the country are really struggling and failing to enforce the rules, it would be right to look at other options for licensing and enforcement. I ask the Minister to consider what could make enforcement work better. What changes to the rules might make enforcement easier? Should there be other organisations involved, or other levels at which enforcement and licensing occur, perhaps at county level? Or should there be an independent regulator with statutory enforcement powers?

To make things easier, perhaps there should also be a change to the rules. When a site has a 12-month licence, people might be told that they cannot stay there all year round, but it is really hard to enforce that rule. It would be easier if a site simply closed for a period of the year, for one or two months. That would not necessarily be popular with the holiday park owners, who are trying to run a business in which people might want to take a holiday at any time of the year, but there is a balance to be struck between making sure that the business model works, and making sure that these properties are holiday homes, because if they become de facto housing developments, they are totally failing to achieve their objective for the economy.

We need stronger protections for the individuals who live in these homes, and need to make sure that any new protections are properly enforced. We need to make sure that consumers know their rights. I have spoken to the British Holiday & Home Parks Association and listened to stories from all around the country, and it seems to be clear that many people are not alert to the risk of being mis-sold a holiday home. They hear that residents pay council tax; they know about 12-month leases; and often the site owners are the only source of information and advice for somebody planning a purchase, up to and including the point of sale. Many purchasers genuinely believe that they are buying a residential home.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

My hon. Friend is making some good points. On the issue of advice, is there not a potential role for solicitors in providing advice about the transactions involved? We are not talking about inconsiderable sums of money; sometimes we are talking about a lot of money for the individuals who are buying these park homes. What role does she feel that solicitors and the legal process should have in helping people to make wise decisions and understand the risks involved?

[Helen Whately]

I thank my hon. Friend for making that point, which is similar to one that was made earlier. When individuals are spending these sums of money—£100,000 or £200,000—perhaps they should be required to get some form of legal advice; it would be right to consider that. Clearly, we do not want to make the process more onerous than the process of buying a home, but one cannot buy a bricks-and-mortar house without going through a conveyancing process. Perhaps if there was a requirement for some kind of more formal process, fewer people would fall into the trap of misunderstanding what they are buying.

There is also a role for communication. Perhaps there is an opportunity for a communications campaign targeted at this market—at potential and current holiday park home owners—so that we get the message to people who might well become victims of this situation. We need to address the mismatch between people’s perceptions and the reality of buying a holiday park home. People need to understand that they are not buying the land; they are buying a lease. They need to know the implications of that.

Looking around, I believe that there are colleagues who may wish to speak, and I am very keen to make sure that my hon. Friend the Minister has time to answer my questions, so I will conclude by saying that by strengthening legislation to give protections to holiday park home owners, by ensuring proper enforcement, and by improving consumer awareness, we can and must make sure that other people do not fall into the same trap that my constituents at Pilgrims Retreat did.