Residents of Leisure Park Homes

Helen Whately Excerpts

Wednesday 27th February 2019 Westminster Hall

[Helen Whately (Faversham and Mid Kent) (Con)]

I beg to move,

That this House has considered rights and protections for residents of leisure park homes.

It is a pleasure to open this debate under your chairmanship, Mr Austin. If you were to visit my constituency, drive along the A20 past Harrietsham, then turn up a winding single-track lane into the rolling hills of the North Downs area of outstanding natural beauty, after about five minutes you would find yourself at Pilgrims Retreat. It is a beautiful spot surrounded by fields and woodland, and there is hardly a building to be seen other than on the site. It is an ideal spot for a holiday, within easy reach of Leeds castle and the Kent coast, and a lovely place to retire to. That is the dream that several of my constituents gave their life savings to buy into.

The reality is a long way from the rural idyll that they were hoping for. Some have spent a six-figure sum on a park home that they believed they could spend the rest of their days in, only to find that they have bought a holiday home, which means that they do not have the same status as permanent residents and leaves them vulnerable to exploitation.

Some arrived at their new property and found that they could not get in, because there was no path or steps up to the front door. The site owner, Fred Sines, a man with a record who has been previously mentioned in the House, then demanded thousands of pounds in cash to fix the problem. I am told that he has also hiked pitch fees overnight with little warning, and that there is a culture of fear and intimidation, with people being banned from using facilities such as the club room, and threatened with having their properties demolished. All the while, they are paying council tax to the local authority, even though they are not permanent residents.

I recognise that leisure park homes or holiday homes are a significant part of Britain’s tourism industry. They are often in beautiful rural or coastal settings, and can be important drivers of the local economy when used for their true purpose: holidaying. According to a recent report by the UK Caravan and Camping Alliance, holiday homes in mobile home or caravan parks make up 8% of the UK’s tourism sector, generate £3.9 billion in visitor spend, and support 170,000 jobs.

When run in a decent and proper way, holiday parks support local economies and provide much-needed jobs in areas where work can be hard to find, but that is not always the case, and Pilgrims Retreat is not a one-off. In my constituency and elsewhere, holiday homes appear to be being mis-sold as residential homes, depriving the local area of tourist income and leaving residents, some of whom are elderly, in poor health and vulnerable to exploitation, with few rights or protections.

The situation is compounded by the failure of local authorities to enforce the terms of holiday home licences consistently by checking whether people are living there all year round—they should not be—and that they have another, main address. There are undoubtedly many wonderful holiday parks where the owners follow the rules, holidaymakers come and go in peace, and the local economy benefits, but that is not always the case.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

My hon. Friend is making a strong case as to why the subject needs to be looked at, and is highlighting the problems that her constituents have experienced. Does she recognise, however, that many operators do a good job and provide employment for local people? I have several examples in my constituency, such as Meadowhead Ltd, which provides a good service. It is important that the whole industry is not tarnished by the way that those bad examples have conducted themselves.

[Helen Whately]

My hon. Friend makes a good point. There are also well-managed park homes sites in my constituency, which is a reason to take action where the system is not working. We have to make sure that the whole industry is not tarnished by the actions of an unscrupulous minority.

For a subset of sites, there is a problem. Gaps in the law and inadequate oversight by local authorities allow unscrupulous site owners to benefit from a lack of consumer awareness. To fix that, we need to strengthen the rights and protections for holiday home owners, make sure that owners and potential owners know those rights, and make sure that the law is properly enforced.

[Mark Garnier (Wyre Forest) (Con)]

My hon. Friend is making a coherent case on both sides of the argument. Does she agree that in some cases—not many—tenants are gaming the system to the disadvantage of park owners, and that a way forward may be more formal legal requirements, through which people who sign leases receive legal advice and are properly bound by the contracts that they sign?

[Helen Whately]

I have heard the same thing. It is as if my hon. Friend had seen my speech in advance—although I know he has not—because we have clearly come to some of the same conclusions.

I reiterate that where the law does not work and enforcement does not happen, the industry overall gets a bad name. As a consequence, individuals’ dreams of an idyllic retirement in a country or coastal setting turns into a nightmare. One specific reason for that is because the owners of a holiday park home do not own the land that they live on; they are simply leasing the caravan or the mobile home on that land. People think that they are signing up to own the property in the long term, but they are actually signing a short-term lease, which can be for as short a time as 12 years. As they are leaseholders, they are covered only by consumer protection legislation, not wider housing laws.

Under the Mobile Homes Act 2013, local authorities have powers to issue notices to residential site owners when the site is not kept in a good condition. They can be fined up to £5,000 for failure to comply with those notices. The Act also gives councils emergency powers to enter sites at short notice to enforce those notices. Holiday park homes are excluded from the Act, however, so although it has helped to reduce exploitation on residential sites, that exploitation seems to have shifted to holiday home sites. Solving one problem appears to have created another.

[Martin Whitfield (East Lothian) (Lab)]

I congratulate the hon. Lady on securing this timely debate. In Scotland, there is a requirement for licences to have been issued to owners by May, whether they permanently reside on a holiday or residential site. The purpose is to give them the guarantees that are lacking in the cases she has referred to. The Scottish Confederation of Park Home Residents Associations has come together to help those people, and to give them a voice that can be heard by the council when there are complaints, and, more importantly, by the site owners when they deviate from what we would all expect.

[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.

--- Later in debate ---

[Helen Whately]

I am very aware of the mis-selling legislation, but I am sure that the Minister is aware that some residents are truly fearful of going down that route, because they think that they are so vulnerable that they may lose their homes.

[Mrs Wheeler]

My hon. Friend makes a very good point. Towards the end of my brief speech, I will answer her as best I can.

Another measure that I know is of interest to hon. Members is the fit and proper person test. We have also heard of cases of harassment and intimidation of holiday caravan owners; harassment is a criminal and civil offence, so I advise anyone being harassed to immediately contact the police.

Let me expand on the caravan site licensing requirements that I mentioned earlier in relation to the fit and proper person test. Under the Caravan Sites and Control of Development Act 1960, all caravan sites in England, except those exempted, are required to have a site licence in addition to planning permission. The purpose of licensing is to ensure that sites are safe for residents and other users.

The Mobile Homes Act 2013 amended the 1960 Act to introduce a new local authority site licensing regime, which applies to all “relevant protected sites”, including sites with planning permission for residential use only, as well as mixed-use sites with planning permission for both holiday and residential use. Local authorities’ powers include the ability to issue compliance notices if a site owner breaches their site licence conditions. If an owner fails to comply with a notice, the local authority can prosecute them; if convicted, they face an unlimited fine. The 2013 Act also made provision to introduce a fit and proper person test for site owners and managers of all relevant protected sites, including mixed sites. I know that Members will be pleased to learn that we will publish a technical consultation in the summer and legislate to introduce the scheme when parliamentary time allows.

The issues that we have discussed today are very complex, but I reassure hon. Members that the Government are committed to improving the sector. We have already introduced important legislation to strengthen the rights of consumers, but we know that there is more work to be done. I will continue to work with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood, to consider what other measures can be taken on consumer protection, to raise consumers’ awareness of their rights when purchasing holiday caravans and traders’ awareness of their legal obligations.

I will arrange a further meeting with my hon. Friend the Member for Faversham and Mid Kent to update her on the actions that I have set out to undertake. Once again, I congratulate her on securing this debate on such a hugely important matter. It is a pleasure to be in Westminster Hall again.

[Helen Whately]

I thank all hon. Members who have contributed to the debate. I feel that it has been a very balanced conversation: it has made it clear that the vast majority of those who operate holiday home sites do so in an appropriate and thoughtful way and look after the users of their park homes, but that we need to crack down on the unscrupulous owners.