Sale of Park Homes
Debate between Natascha Engel and Annette Brooke
Natascha Engel
Absolutely; in fact Rick and Bill, from one of the park home sites in North East Derbyshire, made a T-shirt with “Daylight Robbery” on it, which is selling like hot cakes. It is a funny point, but about something serious. This is daylight robbery from people who cannot afford it. That is the really awful aspect. It is exactly as the hon. Gentleman describes: it feels such a terrible injustice that people pay out and get absolutely nothing in return.
I have mentioned this before in a debate, but it is also interesting to remember that when park home sites first started, the type of people who owned them had a social conscience. Part of the reason why utilities are bought in bulk now is that the site owners used to do that and then pass on the savings to the residents. Now the absolute reverse is true, certainly in many of the sites in my constituency, where although utilities are bought in bulk, everything is completely un-transparent. No one can see what they have used or how much money is being charged, and the site owners tend to add a little administration fee, on top of the pitch fees, on which a lot of them are making a disgusting amount of profit. That really should not be allowed, and it is also something that should be taken into the calculations.
As we have said before, what we are asking for is very reasonable: a review of just one thing that was not included in the private Member’s Bill of the hon. Member for Waveney. That would also be an opportunity for those who disagree with us to make their case. The most interesting thing in the speech by the right hon. Member for Mid Dorset and North Poole was the fact that the evidence relied on, certainly in the consultation for the private Member’s Bill and under the Labour Government, is from previous research that has never really been updated. As the sector is now much more organised, the people taking part in consultations are ever increasing in number and, thanks to Sonia McColl, have a proper focal point. I therefore urge the Minister and the shadow Minister—the Minister in what I hope will be an incoming Labour Government—to commit to having a review, simply in recognition of the fact that there is a problem. It is not a problem for the site owners, but it is for those who live on the sites.
Transparency and clarity are enormously important. Under the last Labour Government, a regulation was proposed to make any changes clearer and to require site owners to make it clear to those buying park homes that they would face not only pitch fees and utilities bills but the 10% charge at the end their time. That should have been a requirement, but unfortunately it was never implemented. It is all there in the Department; perhaps that regulation needs to be brushed down, so that we can have a look at it before the general election.
As I have said, we do not want to deny site owners a living; it is just that, certainly from anecdotal evidence and the kinds of cars they drive, we can make quite a safe assumption that the profits they are making, on the backs of vulnerable people, are extremely high. Therefore, it is reasonable for us to have another look at this extortionate commission of 10%. The right hon. Member for Mid Dorset and North Poole mentioned this, but it would also be a good idea for the review to look at minimum maintenance standards on site, so that if people are paying 10%, the site owner has to commit in return to maintenance up to a certain standard and within a certain timeframe. That would go some way to addressing the injustice that people feel. We could look at that in the review, and there would then at least be a proper justification for the site owners to take that 10%. At the moment, it is daylight robbery; people are getting nothing in return for it.
It was interesting to hear about park home sites that were council-owned. Bramley Park site in my constituency used to be council-owned and is now in private ownership. It does not charge the minimum 10%. The same owner charges the 10% at another park site in the constituency, but he seems to manage perfectly well without charging it on the former council-owned site. Perhaps we could look further into that in the review and assess the profit consequences to a park home site owner if the 10% commission were to be abolished.
Some people think of these mobile homes as caravans, but they are not mobile; they are entirely static. As mentioned earlier, there is one set of rules for people who live in bricks-and-mortar homes, and a different set of rules for these static caravans. Yet these are people’s homes; it is where they live. It is where many of them will live for the rest of their lives. Some have quite a high value. Some of these homes go for between £150,000 and £200,000—often reflecting how beautiful they are. We are not talking about peanuts.
Annette Brooke
When the commission first began to be charged, we were talking about home prices of between £10,000 and £20,000, yet now we are up into the realms of £250,000 for a new park home, and even trading prices can be at least £150,000. These are very large sums of money, yet we do not know exactly what the commission is used for.
Natascha Engel
That is an important intervention. One of my constituents has written:
“Under the new rules a Site owner has no dealings with the sale of properties, not even to notify the provider of essential services…Water, electricity etc. We do that. All he has to do is get his secretary to delete one name and enter another. A huge commission for a two minute job.”
I think that rather makes the hon. Lady’s point.
The review should look at another problem about which residents have written to me. On one park, an elderly resident had gone into a care home before she sold her home. We need to note that none of my constituents were happy for me to use their names. They wanted to remain anonymous because they are absolutely terrified of the consequences that might follow from their site owners. I would like the Minister to listen to this letter, as it reveals a really serious problem. It states:
“In respect of the new Mobile Homes Act 2013 particularly on the sale of homes, it appears that problems are occurring on properties that are for sale and empty due to either the home owners moving to another property or into a nursing home. Although the ground rent is continuing to be paid, our site owner is claiming that if the property is empty then the home owner is breaking the law within the implied term which states that the home must be kept in a sound state of repair and must be the sole residence of the occupier. It appears that our site owner then sends a solicitors letter to that effect to the seller and also sends out surveyors to check the exterior of the property who obviously find many major defaults and state the property is not worth anything! This then means that any prospective purchaser cannot purchase the property because it is in the hands of the site owners solicitors pending court action!”
That was not the first time I had heard about that problem, which relates to the wider context of the 10% commission issue. We really must have a proper and careful look at this. One positive consequence of setting up an independent review is that many such examples, which I have become aware of only recently, would be brought to our attention. Many of these real injustices, which simply would not be tolerated for homes of bricks and mortar, could be highlighted. That would be most useful.
I hope that when the Minister and the shadow Minister wind up the debate, they will commit to setting up a review and will ensure that the review is independent. We would very much like to help out with the review, but what is most important is for it to be independent of not just site owners, but any other pressure groups. We must ensure that its findings are regarded by everyone as fair and justified. It is high time that we updated what is, by now, quite ancient research.
Notwithstanding what was said by the hon. Member for Waveney, I think that time is of the essence. One of the tragic aspects of this issue is that many people have died since I started the campaign: they have died waiting. Many of those who are alive are elderly, and time is clearly of the essence for them. This is an injustice that needs to be dealt with sooner rather than later.
It is unfortunate that many of the changes for which we have been lobbying have got lost between general elections. I should dearly love to see a review set up now, with a definite timeline and involving cross-Bench consensus, so that we can ensure that something happens, and happens very quickly. I should be very grateful if the Front Benchers would be specific about whether there will be a review, how independent such a review will be, and, above all, what the timeline will be.
Park Homes
Debate between Natascha Engel and Annette BrookeWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Annette Brooke (Mid Dorset and North Poole) (LD)
It is a pleasure to serve under your chairmanship today, Mr Howarth. I begin by welcoming the Mobile Homes Act 2013, which goes a long way towards rebalancing the rights of park home owners and site owners. Overwhelming evidence of appalling practices made it an imperative to introduce legislation to prevent unscrupulous site owners from blocking residents’ sales on the open market. It was also obvious that greater protection should be made available through enhanced local authority powers and reform of the licensing system. I have spoken at some length on such issues over the years, but I will just touch on them today.
I again congratulate my constituent Sonia McColl, a park home owner who set up the national park home owners’ justice campaign and who has fought tirelessly on park home issues, particularly sale blocking. I also congratulate my hon. Friend the Member for Waveney (Peter Aldous) on successfully leading his private Member’s Bill on mobile homes through to enactment. Different parts of the 2013 Act are being implemented at different times, so it is difficult to make an early, overall judgment on the Act’s impact. What assessment has been made of the effectiveness of the Department for Communities and Local Government’s communication strategy to inform park home owners of their new rights and site owners of their new responsibilities? On one site, a notice has been erected stating that all sales must be carried out through the site owner’s office. How is the new legislation on sale blocking being monitored and enforced?
Natascha Engel (North East Derbyshire) (Lab)
I congratulate the hon. Lady on all her work. Without her, much of this would not have happened. The Mobile Homes Act 2013 has already made an overnight difference, but a big issue that I have always campaigned about is the 10% charge payable to site owners. Will she say a little about that?
Annette Brooke
I thank the hon. Lady for her great support throughout our battle to secure legislation. I called this debate in the light of a huge new petition against the up-to 10% commission on the sale of park homes payable to site owners. Sonia McColl has collected signatures from some 30,000 park home residents from 956 parks across the United Kingdom and the petition will be presented to the Government in July. I have always accepted that there needs to be a reasonable return on capital to site owners, but I do not know in detail the justification for particular levels of commission. Given the strength of feeling from park home owners, it is right to put their views forward and to examine how their concerns about being overcharged for the level of service received might be addressed. The answer may lie in more transparency and accountability. Those who have signed the petition are calling for a proper debate on the fairness of the commission payment and they argue that previous inquiries into the charge have been biased and heavily reliant on information provided by park operators, rather than park home owners.
It is interesting to note that the maximum level of commission was reduced in 1983 from 15% to 10%. While there has been no change since then, the dissatisfaction of park home owners with this state of affairs has continued. The arguments for from the site owners and their representative bodies and the arguments against from park home owners and their associations remain much the same. Park home owners argue that as a site owner does nothing to earn the commission, they do not see why he or she should receive it. The argument is reinforced when occupiers highlight how they have increased the value of their homes by adding porches and other improvements at their own expense. Many park home owners claim that there has been little investment in their sites and that essential maintenance has not been carried out. Site owners say that the commission payment is part of the income, along with pitch fees and selling new mobile homes, that they have always expected to receive to make the businesses viable. They say that if the commission was reduced or abolished, they would either have to increase pitch fees accordingly to make up the difference or go out of business.
In March 2007, the Government published the responses to their consultation on the park home commission rate, which outlined options for a more transparent payment system for mobile homes. They concluded that the current level should be retained but that there should be more transparency on the payment within agreements between park home owners and site owners. An option to reduce the rate with no pitch fee increase was rejected, although it unsurprisingly received overwhelming support from park home owners.
Holiday Pricing
Debate between Natascha Engel and Annette Brooke(10 years, 9 months ago)
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Natascha Engel
Absolutely, and the case is ongoing. I was citing it as an example of using a massive hammer to crack a nut. Everything is with good intentions. We all want the best education for our children. We all know that the less time a child spends at school, the worse its outcomes will be, and there are lots of different reasons for that. There are children from chaotic families and children who truant, but we are talking about looking at an individual child and the family’s circumstances and seeing whether it would be possible, not to have a week a year taken out of school time, but to have a week occasionally to make sure that that family can spend some quality time together. I am so glad that we are having this debate, and I am looking forward to hearing about other individual cases from constituencies, because they will highlight the fact that we do need to revisit the matter.
Obviously, we cannot force holiday companies not to raise their prices during school holiday times, but we do need to have a far more sensible and pragmatic approach. We need to give schools greater discretion to allow families to have holidays together.
Annette Brooke (Mid Dorset and North Poole) (LD)
I agree with many of the points the hon. Lady is making, but I have a concern about putting the onus on to head teachers without very good guidelines. Head teachers would find it difficult with parent against parent, and there would be inconsistencies across areas and across the country, so I think we need to dig into the criteria and guidelines that are issued.
Natascha Engel
That is an excellent point. I know the hon. Lady has a background in education, and she is absolutely right. All I am asking for is that we allow greater discretion. At the moment, there is not enough discretion, and that is why the issues are being raised with us as constituency MPs.
Mobile Homes Bill
Debate between Natascha Engel and Annette Brooke
Annette Brooke
I thank my hon. Friend for that intervention. I will refer specifically to the Committee later.
Sonia has carried out a massive survey, Consumer Focus has proceeded with an investigation and, latterly, the Communities and Local Government Committee has conducted an inquiry. Throughout, there has been enormous support and help from the park home owner associations. Many parliamentarians have been involved over the years, although I can only mention a few today. First, of course, I want to congratulate the right hon. Member for Welwyn Hatfield for bringing these proposals together and the noble Lord Graham for his unstinting support for park home owners over many years. More recently, there has been the truly cross-party work of the all-party group and, in particular, the meetings between Ministers and me, my hon. Friend the Member for Winchester (Steve Brine) and the hon. Member for North East Derbyshire. This is the very best type of legislation, with strong cross-party support.
To prove that malpractice is widespread, Consumer Focus carried out independent research to back up the anecdotal material that we all had. This provides some incredible background—this is an evidence-based Bill—and makes it clear that we are not dealing with a series of isolated events, but that the problem goes right across the whole industry.
I am pleased with the structure of the Bill, although of course we will have to scrutinise each clause closely in Committee. On licensing reform, local authorities must have the resources to do what I believe most of them want to do. Consumer Focus reports in its survey that local authorities want more power, so let us give them the necessary resources. They are on the spot, and it is fairly easy for park home owners to go and find someone at their local authority.
According to Consumer Focus, 25% of people surveyed reported problems of maintenance, security and safety, which is why it is important to have a site licence and site licence conditions, to enforce those conditions and to ensure that the site owner does not carry out vital work but that the local authority is empowered to do it and recover costs. I agree with the hon. Member for Winchester that this should be a last resort, however, and let us hope that the Bill sends out the message that we need a better and more consistent approach throughout the industry. I am a little concerned, however, that the clauses on licensing might not be brought in operation before April 2014. That is a long time to wait, if, as I hope, the Bill is enacted in 2013.
On clause 8, we must thank the Select Committee for its recommendation regarding the “fit and proper person” rule, which would not be in the Bill had it not been for the Committee’s important work. It is a clever device to have in our back pocket ready to introduce. We have been calling for it for many years. There are reservations—will it work?—but it is excellent that it is now in the Bill.
Clause 9 deals with site rules. It is important that park home owners know exactly what the rules are, that the rules are printed in the pitch agreements and that the agreements are transparent. We must have certainty. I have come across cases of the age clause in site rules being very conveniently changed after a purchaser has been turned away for being the wrong age. I suggested that site rules be lodged with the local authority, so I am pleased that such a provision has been included. One of my local authorities requires residents associations to lodge their constitutions with it, and does not invite associations that do not do so to consultative meetings. So there is a precedent. This would get a grip on the problem of people changing the rules as they go along. Having said that, some park home owners have expressed concern about how the licence fee will be paid, but we will talk about that in greater detail later.
Sale blocking is what first got me involved in this issue. We had the most appalling incident in my constituency where £15,000 was offered for a home that could have gone for £150,000 on the open market. The problem is widespread. Consumer Focus showed that 28% of residents thought they could not buy or sell their homes freely, and that 10% reported problems of intimidation, violence, vandalism and damage to property.
Natascha Engel
Does the hon. Lady accept that, stark as those figures are, a lot of people were, worryingly, too frightened to tell Consumer Focus the truth, which means that the figures are an underestimate, rather than an accurate picture?
Annette Brooke
The hon. Lady is absolutely right. This is the tip of the iceberg. I keep referring to the figures, however, because they are evidence—that is what is important. We relied on anecdotes for a long time, but it got to the point where we were not going to make progress without evidence.
We have a two-tier approach to sale blocking comprising existing agreements and new agreements. We have to look at that closely. Consumer Focus recommends a targeted campaign to ensure that prospective and current park home residents are fully aware of their rights and obligations. This will be really important. We say that park home owners do not want to speak out, but we are not convinced that we have reached the majority of park home owners. It is especially important that the home owner provides the purchaser with the regulations. I agree that citizens advice bureaux need to be more proactive in making much more information available to park home owners, and that we need to encourage purchasers to use a solicitor. The right hon. Member for Welwyn Hatfield made a very good contribution when he proposed to increase fines. We are now talking about fines of £50,000, which will make a difference, because in one very bad case in my constituency the fine was £1,000, which was just not enough in the overall context.
Other Members have probably, like me, received representations from park home site owners who have expressed concerns, because there are a lot of unknowns for them, with a lot of references to things being covered in regulations. I understand that uncertainty, particularly on the part of our good site home owners—like everybody else, I have good site owners in my constituency. It is important that we should have a good dialogue, because we want this to be a good industry overall. That means ensuring that we do not pass bad legislation, and there are fears that we might do that. We need to reassure those concerned that we will scrutinise the proposed regulations in Committee in the utmost detail, because we want the Bill to work for everybody.