Sale of Park Homes

Debate between Natascha Engel and Peter Aldous

Thursday 30th October 2014 Commons Chamber

[Peter Aldous]

I certainly take that on board.

The Mobile Homes Act was the biggest shake-up in the park homes sector for 30 years, and it will take a few years to settle down and be implemented fully, properly and effectively. The feedback I have received is that the legislation is providing local authorities with the means of working with park home owners to bring rogue site owners to account, ensure that parks are properly managed and run, and ultimately to drive those bad apples out of the sector.

There remains much work to be done to make the new sale process work better. On good, well-run sites, in the past home owners have relied on responsible site owners—the good apples—to do much of the work for them when it came to selling their homes. Now that site owners have been removed from the sale process there is a vacuum to fill, and I am afraid that the legal, conveyancing and estate agency professions are not coming forward quickly enough to fill that void. That problem needs to be addressed now.

[Natascha Engel (North East Derbyshire) (Lab)]

The hon. Gentleman mentions estate agents. A 10% charge is taken by the site owner, but residents also pay estate agent fees, so that is one injustice. This measure is not being done in haste; as he said, this has been 30 years in the making. His Bill was important because it dealt with the most serious injustices, but it left out the 10% commission because it was so complicated and contentious. Why is the hon. Gentleman fighting against a review? We are asking to look at all aspects of the 10% commission, specifically in a review. Why is he so hesitant to have such a review and consider those aspects?

[Peter Aldous]

I am not opposed to a review, as I will say when summing up my remarks, but it is about the timing of that review and the way it takes place. I understand —I would be grateful if the Minister confirmed this when he sums up the debate—that the Department intends to carry out a comprehensive review of the sector in 2016, three years after the Mobile Homes Act received Royal Assent. One of the main tasks in that review will be to assess whether the fit and proper persons test should be applied to those seeking to manage parks, and I suggest that at the same time the whole sector should be reviewed, including the commission rate. I believe that is the right way to consider this matter, not on its own ahead of that comprehensive review.

Those are my findings on this situation, and as I said, we must seek to maintain an equilibrium and ensure that responsible site owners get a fair return. When introducing the Bill it was important to maintain understanding and consensus on all sides, but I fear that we are perhaps in danger of losing that consensus. That is the basis on which I hope we can proceed.

--- Later in debate ---

[Peter Aldous]

The image that the hon. Lady is portraying is the view I have of the one bad park home site in my constituency. Does she not agree that the Mobile Homes Act 2013 provides the means to address the problem?

[Natascha Engel]

We hope it will address the problem. One of the really big issues previously was that there was nobody to enforce the licence unless it was a matter for the police, in which case it was a criminal matter and out of everybody’s hands anyway. We hope it will be a very important change, but certainly in North East Derbyshire the legislation needs to settle down. The 10% flat rate seems enormously unfair when site owners are saying it is absolutely essential for the maintenance of the park and no work is ever done. On the contrary, residents are doing all the work and having to pay out for everything.