Residents of Leisure Park Homes

Martin Whitfield Excerpts

Wednesday 27th February 2019 Westminster Hall

[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.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Austin. I thank the hon. Member for Faversham and Mid Kent (Helen Whately) for introducing the debate.

For anybody watching, I begin by making clear the distinction between leisure park homes and residential homes, because that is extremely important. The terms are not interchangeable. I completely agree with the concerns about leisure park homes raised by the hon. Lady and others. Leisure park homes can be bought by unsuspecting people in the mistaken belief that they can live in them all year round, when that would be a clear breach of licensing conditions for holiday homes. Those who have purchased a leisure park home must have a permanent residential address elsewhere, as such homes cannot be used as a main residence. That can affect council tax, planning permission requirements and so on, as the hon. Member for Chichester (Gillian Keegan) said.

Permanent residential park homes, of which I have a couple in my constituency, are not the same; owners can live in those houses full time, all year round. The regulation of those sites is a matter for the Scottish Government. However, clearly the terms and conditions attached to the different kinds of parks—leisure park and permanent residential park homes—need to be made absolutely clear to prospective buyers. As we have heard, that is not always the case.

The situation is complex. With regard to permanent residential homes, I have heard of situations in Scotland where parks are not properly maintained, despite significant charges being levied on residents for that very purpose. In response, the Scottish Government have introduced a new licensing system that gives local authorities enforcement powers that they had not enjoyed before. That means that the local authority can serve improvement notices if the site owner commits a criminal offence in breaching a licence condition.

In addition, the local authority can take the steps set out in an improvement notice if the site owner defaults. Penalty notices can be served, and the local authority can apply to the sheriff for the appointment of an interim manager. Furthermore, emergency action can be taken if there is imminent risk of serious harm to the health and safety of a person. That represents a significant beefing up of local authority powers, and is a response to site managers or owners simply collecting money while not fulfilling their obligations to keep sites maintained to the standard that those with park homes are entitled to expect. Where there are gaps in the law regarding leisure park homes, they should be addressed, as the hon. Member for Chichester pointed out.

Another issue relating to permanent sites that owners are simply not aware of in every case, until they reach the point of resale, is that permanent residential park home owners have to pay sales commissions of up to 10% on the resale of their park home, as the right hon. Member for New Forest West (Sir Desmond Swayne) pointed out. The question that we must ask is: if residents do not know about the charge, why do they not? Clearly the system is not working as we would wish it to. As the hon. Member for Strangford (Jim Shannon) pointed out, the power supply to these homes is also an area of concern.

[Martin Whitfield]

Will the hon. Lady give way?

[Patricia Gibson]

We are really short of time; I think the Chair would like me to proceed. I do apologise.

In Scotland, we hope to counter some of those difficulties. All prospective mobile home buyers will now have 28 days’ notice to consider the terms of the agreement before the sale can be concluded. It is important that this group of consumers have the proper protection that they need when choosing to live year-round on licensed permanent mobile home sites, because it is a very expensive undertaking. It is important that the system be transparent, open and fair, both to permanent residential site owners, and to those who choose to live on such sites.

I say to the Minister, as other Members have said, that protections are required to make the system of purchasing leisure or residential homes, and the rights and responsibilities of each party, fair for all concerned and transparent. Those measures need to be in place. As I always say in such debates on devolved matters, it is really important that England looks at what Scotland has done to see what can be learned, and vice versa. We should all pursue best practice, no matter where in the UK we live.