Sale of Park Homes

Debate between Gavin Shuker and Annette Brooke

Thursday 30th October 2014 Commons Chamber

[Annette Brooke]

The park home owners say that that gives even less justification for the 10% commission, because the site owners are not involved any more.

I received an interesting representation from a park home owner, who wrote:

“I am not personally in favour of abolition of the sales commission. This would remove an opportunity to improve the sector. Linking a reduced sales commission to site owner performance will improve site maintenance, sustain home values and assist mobility.”

That is an interesting idea and perhaps we could work it through.

[Gavin Shuker (Luton South) (Lab/Co-op)]

The residents of Brickhill Farm and Downlands park homes in my constituency would welcome the right hon. Lady’s general approach to the debate. Clearly, the 10% commission is having a behavioural effect on whether people are able to move and how they do so. Surely that should be the major point to consider when it comes to reviewing the effectiveness of any legislation or legislative change.

[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.