Park Homes Debate

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Park Homes

Stephen Gilbert Excerpts
Thursday 16th December 2010

(14 years ago)

Commons Chamber
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Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Order. I call Stephen Gilbert.

Stephen Lloyd Portrait Stephen Lloyd (Eastbourne) (LD)
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Thank you very much, Madam Deputy Speaker. Like everyone, I congratulate my hon. Friend—

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Stephen Gilbert Portrait Stephen Gilbert (St Austell and Newquay) (LD)
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Thank you, Madam Deputy Speaker. I apologise to my hon. Friend the Member for Eastbourne (Stephen Lloyd). Although we share a first name, there are clearly some differences in our surnames. I am sure he will get a chance to speak later in the debate.

I add my plaudits to those of other hon. Members to my hon. Friend the Member for Mid Dorset and North Poole (Annette Brooke) for securing today’s crucial debate, and to the Backbench Business Committee, which chose it. The Committee is revolutionising the way in which the House works and allows us to respond to our constituents’ concerns in a timely way.

There are more than 700 park homes in my constituency. Thousands of people across the country are affected by this issue, so its importance cannot be denied or ignored any longer. It is beholden on the Government to move swiftly on some of the measures that hon. Members have outlined.

As the chair of the all-party group on housing, I am a passionate believer that every person deserves somewhere safe and secure to live, and that no one should experience extortion, intimidation or harassment in their own home, but that is the reality that faces many vulnerable people in park home sites. In my view, there is a serious gap in the legislation and a worrying lack of regulation, and perhaps most importantly, as has been mentioned, there is no fit and proper person test for site owners, who in effect act as landlords to communities of vulnerable people.

Of course, the majority of park home sites are well run by well meaning people. However, the House cannot refuse to take action just because the majority do well. One reason we are here is to look after, and intervene for, minorities who face difficulty.

Earlier this year, in the run-up to the general election, I conducted a survey of every park home in my constituency. Many of the responses were more concerning than those that hon. Members receive from average street surveys—they were distressing to read. One issue that came up time and again is the extortionate rates at which some site owners increase their pitch fees year on year. One constituent told me of an annual increase of 20%, which is clearly out of order—it was well above the rate of inflation for that or any year. However, that person was elderly and vulnerable, and had no one to act as their advocate. They were entirely reliant on the information that the site owner provided them on their rights.

A 2002 study by Shelter, the housing charity, suggested that

“in practice above-inflation increases or one-off charges may be levied to cover particular items.”

However, the problem is much more endemic. Clearly, above-inflation increases are the norm in sites across the country, and there is no added value for residents. I hope the Minister addresses that in his comments.

Another issue arises when we go back to basics. Under Land Registry rules, there is no requirement to register pitches, so although sites might be registered, individual pitches are not. That enables site owners to move the chalets around and provides no security of tenure for the people who have notionally purchased at least an interest in the pitch.

Christopher Pincher Portrait Christopher Pincher
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My hon. Friend uses the word “chalets” to describe park homes. Are there too many ways of describing such homes? They are variously called park homes, chalet sites, static homes and mobile homes, but they are not mobile homes or chalets. They are plumbed into the mains water system and have mains electricity and often gas. If I can put this sensitively, the people in them are very often the opposite of mobile. That should be recognised in the law and in how we describe such places. Such homes are not chalets or mobile homes; they are residential properties.

Stephen Gilbert Portrait Stephen Gilbert
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I absolutely agree with my hon. Friend—I was going to make exactly that point. In a written parliamentary answer to me, the Housing and Local Government Minister used the word “chattel”. My broader point was that people who live in these homes are trying to find a better way of life for themselves, but they purchase no interest in the land on which their homes are sited. They should have such an interest. The House needs to define what that interest is and to make it clear that the pitch comes as part of the package.

When we add to those problems utility provision and charging, and the above-inflation annual increases in the pitch fee, we can see how difficult it can be for park home owners to budget and plan their finances from year to year. Again, in my survey of my constituency, I heard horror stories similar to those told by the hon. Member for Ellesmere Port and Neston (Andrew Miller). There are increases in charges for water, sewage, electricity and all the basics. Tenants and freeholders take it for granted that they get a fair deal from their suppliers, but park home owners do not have that certainty. Even if they know that they are not getting a fair deal, the vulnerable people we are talking about simply do not understand how to exercise their rights.

Indeed, the draft Mobile Homes Act 1983 (Amendment of Schedule 1) (England) Order 2006 clearly states that if requested by an occupier, the site owner shall provide documentary evidence in support and explanation of any charges for gas, electricity, water, sewerage or other services payable by the occupier, but that never happens. My hon. Friend the Member for Mid Dorset and North Poole spoke of the difficulties that park home residents find in forming residents’ associations and making them into effective vehicles for making those points.

Many elderly and vulnerable people are caught in a very difficult position; as other hon. Members said, selling park homes can be a difficult process. Site owners can prevent sales by blocking a homeowner’s right to sell through a notice to terminate agreements on the basis that the home is having a detrimental effect on the site. However, site owners use that so that they can simply jump in with a bid at a knock-down price.

Even if a site owner does not block a sale, selling might not stack up financially for residents because of the site owner’s entitlement to take a commission of up to 10% of the sale price. Many residents who have tried to buy into a dream have ended up living something less than that, but they could be worse off if they try to exit because of the 10% rule. It is no surprise that the rule is resented by homeowners. Many of them have put up with increasing annual pitch fees, and many have added value to their homes because they are proud people who want to live in nice surroundings.

Finally, I have serious concerns about the harassment, bullying and general intimidation to which homeowners on park home sites are all too often subjected. Bullying tactics, threatening behaviour and even assault are not the norm, but they are not rare either. That is why this subject has brought so many Members to this debate, and it is why it is so important that the Government hear the House’s concerns.

Andrew Bridgen Portrait Andrew Bridgen
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I appreciate my hon. Friend’s measured language and his acknowledgment that most park home operators are responsible people doing the best they can for their residents. However, does he agree that, in the wrong hands, the system we have now for the operation of park homes is the nearest thing to feudalism that remains in our country? The introduction of sensitive, fair and well-thought-out legislation could enhance the situation by providing protection for both park home owners and operators, which could only be good for the industry, and, with markets being what they are, it would enhance the value of those properties for everybody.

Stephen Gilbert Portrait Stephen Gilbert
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My hon. Friend puts the point far more eloquently than I have been able to do: we are dealing with the remnants of a feudal system. I hope that the Minister has heard that point.

I want to be balanced, however, because I want to welcome the steps that the Government have already taken—in particular, the transfer of responsibility for on-site disputes to the Residential Property Tribunal Service. That is a helpful step forward, but it cannot be seen as the end game for the Government in their approach to effective regulation of park homes. I do not just want to help my residents to resolve disputes; I want to prevent them from having them in the first place. However, that will require a much stronger and transparent regulatory regime. I look forward, therefore, to hearing from the Minister about the work he has done with interested parties and the recommendations they have made to him.

I end with a call to arms: this issue bubbled away under the last Labour Government—and indeed the previous Conservative Government—but it is time that we gripped it, because we are talking about many thousands of our most vulnerable citizens.