Mobile Homes (Requirement for Manager of Site to be Fit and Proper Person) (England) Regulations 2020

Lord Teverson Excerpts

Thursday 3rd September 2020 Lords Chamber

[Lord Teverson (LD) [V]]

My Lords, we very much welcome this secondary legislation, but all Governments have always been rather behind the curve on this issue which, when many of us were elected representatives, appeared on our desks all too often. Although I very much welcome it personally, many residents who have suffered previously from the actions of site owners feel as cynical as the noble Lord, Lord Campbell-Savours, described. They feel very strongly that these organisations —the managers and companies that are the rogues—often find their way around these regulations. Having said that, I shall come on to enforcement later.

We have to remember that this is not just a minority interest: there are some 85,000 households in park homes on more than 2,000 sites and, as the Minister has rightly said, they are older, less well-off, more vulnerable people. The problem is that the power in this area is very asymmetric, not least, often, when satisfied residents find that the ownership of their site has been transferred and there is a whole regime change, not just in the legal landlord but in the tone and the way that those sites are managed. The key issue is that of circumvention, either by having different site managers come in, or indeed by changing the ownership of the company that legally owns the sites. These are methods that have been used in the past to get around similar regulations.

As I understand it, having read the regulations, it is either/or—either the site manager or the owner has to be approved in this way, not both. It seems to me very important that, never mind the site manager, the owning company or person also needs to be approved: it needs to be a dual process and I understand that that is not the case at the moment. As the noble Lords, Lord Best and Lord Berkeley, said only too well, the key issue here is one of enforcement: many residents on rogue sites at the moment feel that local authorities have just not had the resources or perhaps even the wish to get heavily involved with these companies and actually implement the legislation. I welcome very much the Minister restating that fines will be unlimited in this area, but they have to be imposed. Until they are and those fines stop being part of the cost of operating these sites, the abuses will continue.

I have a number of other questions. I am pleased that so-called grandfather rights do not apply here and that all existing site owners have to be registered; I welcome that very much. Are the Government looking further at the 10% commission fee on the sale of mobile homes or park homes on these sites, which is still highly contentious? Will the Government liaise closely with local authorities on implementation of these regulations? I think it is important that we share information, as the noble Lord, Lord Bourne, said very strongly and correctly. There is ample scope here for one authority approving an owner while others do not, and a risk that that will discourage councils from not approving particular individuals.

As for fines, this again leads into the judicial process, but it is very important that they are at a level that actually deter once enforcement takes place. Lastly, some site owners are foreign companies and I presume—I would be interested to hear from the Minister—that they will have to comply equally. What legal measures can be taken against them if they do not comply? That is important.

We very much welcome these regulations but the key thing, as all Members have said, is that they need to be enforced. The fines need to be substantial, not just operating costs on business. We need this to be a turning point for some 85,000 households, with all of them feeling secure in their form of living and their residences.