Park Homes

Lord Stunell Excerpts

Thursday 16th December 2010 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)]

It is a pleasure to respond to this Back-Bench debate and to my hon. Friend the Member for Mid Dorset and North Poole (Annette Brooke)—I always have to get my norths, souths, easts and wests carefully organised when I refer to her constituency. The debate, which featured 14 contributions from Back Benchers, has been well informed, wide ranging and sometimes passionate—hon. Members have given a real sense of the injustice that some park home residents are forced to suffer—and it has come at a good moment, because as my right hon. Friend the Minister for Housing and Local Government already told the House, he will make a statement on this matter in the new year. I will ensure that all the contributions and the many and varied suggestions and ideas come to his attention as he works on that.

Rightly, many Members acknowledged the broader context. The sector provides homes for 85,000 families and perhaps as many as 150,000 residents, as my hon. Friend the Member for Gloucester (Richard Graham) said. The very large majority of those residents enjoy peace and quiet, and are happy and satisfied where they are. Many sites are properly managed and maintained by decent, honest and professional site owners who have regard to the welfare and rights of the communities in their parks. It is a pity that their good work is often overshadowed by the unacceptable conduct of a minority, about whom we have heard some telling stories this afternoon. That minority can cause misery to a community in many ways; for example, by not maintaining sites properly, by bullying residents and by interfering unreasonably, or even unlawfully, when residents try to exercise their lawful rights. The House has also heard significant allegations of criminal behaviour and even blackmail. However, I do not want to dwell on the specific allegations, except to say in plain terms that the Government believe that the park homes sector should have no place for these people. I want good site owners to thrive and bad site owners to be taken out of the sector.

It is important to note some of the themes that have come out of today’s debate. We have heard the stories and anecdotes, which I do not dismiss, but Members on both sides of the House have also recognised that there has to be a balance between the powers and responsibilities of site owners on one hand, and of home owners on the other. We need to reflect on the fact that every home owner, in becoming a home owner, will have had the opportunity to look at the terms and conditions of the sale and purchase. I hope that we might also reflect on how we can make those terms and conditions more transparent to prospective purchasers, and ensure that once signed they are adhered to by both sides.

We have heard contributions about the degree to which regulation should be light or tough. My hon. Friend the Member for Eastbourne (Stephen Lloyd), who declared himself to be a deregulatory Liberal, has come to the conclusion that we need to toughen up regulation, and that was the message, I think, from hon. Members throughout the House. I will ensure, therefore, that that view is conveyed clearly to my right hon. Friend the Minister for Housing and Local Government.

The Government are committed to targeted reform that does not place unnecessary burdens on site owners, who ought to be allowed to thrive. We will not solve the problem if we drive well-run sites out of business because of an overburden of regulation or control. Our first priority, therefore, is to make it quicker and easier for residents to challenge unreasonable behaviour by site owners who disregard residents’ rights. My right hon. Friend announced in July that, under the Mobile Homes Act 1983, jurisdiction in the settlement of most disputes will be transferred to the Residential Property Tribunal Service.

I can assure the House that subject to parliamentary approval we intend those tribunals to become operational from next spring. That has been a priority for park home residents for many years, and I am committed to implementing it as quickly as possible. It will enable residents to resolve disputes much more quickly and easily, and act as a deterrent to unreasonable behaviour. I can also assure hon. Friends that access to the tribunal is normally free, although in some cases there may be a fee of £150. However, legal representation is not necessary, so the cost is much less than for court proceedings. That is a major step forward. It will give residents quicker and easier access to justice, provide an opportunity for rapidly resolving disputes and deter unreasonable behaviour.

[Andrew Miller]

That is a sensible proposition, but I ask the Minister to reflect on the history of other tribunals that started in a well-meaning way but gradually became more and more bureaucratic and legalistic. As time passes, there will be the risk—starting perhaps with the site owners—that more lawyers will enter the process, so we will need to reconsider the situation after a year or so of running the tribunals to ensure that we have got the balance right.

[Andrew Stunell]

The hon. Gentleman makes an important and interesting point, but if I may say so, perhaps we should focus on introducing tribunals before we start to evaluate them.

The aim is to improve site management and deter bad practices. That will benefit not only residents, but the industry as a whole. It does the sector no good at all to develop a reputation for bad behaviour. As they pursue their work, the tribunals will provide evidence in an open and transparent way—through a body of cases, involving case law and decision making—which will benchmark good behaviour and identify unacceptable behaviour, thereby playing a standard-setting role.

The motion calls on the Government to review the case for establishing a “fit and proper” licensing system. There is certainly no role in the sector for unscrupulous and criminal operators, but they are a minority. That brings us back to the balance between regulation and the burden of implementation. The Government’s general approach is to reduce top-down regulation and minimise the involvement of central Government in local decision making. However, we are committed to protecting the most vulnerable, and I know that some park home residents are among the most vulnerable members of society, as has been well pointed out in this debate. We are not convinced that the protection of park home residents from the minority of unscrupulous site owners requires a complex and costly national licensing system, which would apply across the sector and place burdens on all site owners, good and bad, with that cost ultimately being passed on to residents too. We have to strike a careful balance—one that protects the vulnerable, targets the worst and minimises the regulatory burdens on the law-abiding majority.

On the blocking of sales, I have every sympathy with residents who are unreasonably thwarted when trying to exercise their lawful right to sell their homes. I know that those concerns are shared by my right hon. Friend the Minister of State. The park home justice campaign is to be commended for bringing this important matter to the forefront. Ministers are now well alert—if we were not before—to what the issues are. However, we need to look at what the remedy is. The premise is that unscrupulous site owners might be less likely to make false representations or deter potential buyers if an interview with a prospective purchaser took place in front of a solicitor. However, it is a little hard to see exactly how that would work or who would appoint the solicitor, let alone who would pay for him or her. There is no reason to believe that an unscrupulous owner is likely to be any less dishonest because there is a witness present.

There is also a wider question about whether interviews are required at all, because there is certainly no statutory or legislative reason for them. The Mobile Homes Act 1983 permits the site owner to approve the purchaser, but that could be done in a number of ways, not necessarily through an interview process; for example, by providing relevant documents. If there is no legal requirement for an interview, it would be burdensome to introduce a formal regulatory process for conducting one. However, that is not to say that we believe it acceptable simply to let unreasonable behaviour be tolerated. We see improving access to justice through the residential property tribunal as the first step towards ending abuses in such cases. My right hon. Friend the Minister of State is only too aware of the problems, and he intends to announce in the new year a package of measures that will curb the excesses of the minority of unscrupulous owners, while not placing undue burdens on the majority who manage their sites effectively and in the best interests of the community.

[Martin Horwood]

In my remarks I talked not only about sites for permanent homes, but about holiday sites, where often there is also a lot of evidence of abuse. Will my hon. Friend’s measures and his right hon. Friend’s considerations include those sites as well?

[Andrew Stunell]

I will certainly take that request away, and we will certainly consider it. It is worth reminding the House that where mobile homes are used for full-time residential purposes, they have a number of tax and regulatory advantages, as compared with what we might call “normal” homes. That is because of their status as residential homes of a particular type. Holiday homes are in a different category, and have all sorts of other regulatory frameworks relating to them. However, I will ensure that that point is taken into consideration.

This has been an important and timely debate. It has certainly highlighted important areas of concern to Members, and it is a tribute to the new Back-Bench debating system that it has come before the House today. It has been helpful to me and my ministerial colleagues and I hope that, when the announcement is made in the spring, hon. Members will feel that their contribution to the debate today has had an influence on the way in which the Government are approaching the problem.