Sale of Park Homes

Debate between Steve Barclay and Peter Aldous

Thursday 30th October 2014 Commons Chamber

[Peter Aldous]

I agree with my right hon. Friend that there is an awful lot of work to be done in the sector. As I complete my remarks, she will see that I do not think that now is the right time to look at this one issue in isolation. The 2013 Act was one of the biggest changes in the sector in 30 years. I think that it needs to bed down and that we should then carry out a full review.

I have learned a great deal about the sector in the past two and a half years. One message that I have very much taken on board is the importance of achieving an equilibrium—a balance whereby park home owners can enjoy a high standard of living, a peaceful environment and quiet enjoyment, while responsible site owners can manage their parks efficiently and properly, and make a reasonable living and a return on their investment. In the feedback that I have received from responsible and good park home owners in my constituency, the concern has been expressed that if the 10% commission were removed, that equilibrium would be lost.

Given that there are fewer opportunities for new developments on sites and that the lifespan of homes is increasing, site owners are very reliant on pitch fees and sale commissions for their income. The majority of their income is derived from pitch fees—the figure of 70% has been mentioned to me—with sales commission providing much of the remainder. In many cases, the income from sales is the difference between profit and loss. I have seen figures to confirm that. Changing the 10% commission rate might therefore lead to some businesses becoming financially non-viable. That could result in cuts being made in the management of parks, with less money being spent on investment in infrastructure such as roadways, footpaths and communal areas. The result could be that parks take on a more run-down, down-at-heel appearance, which would have a negative knock-on effect on the value of the homes.

[Stephen Barclay (North East Cambridgeshire) (Con)]

My hon. Friend speaks with authority, given his long-term commitment to this matter. However, I take issue with his point on the deterioration of standards. Is not the issue the bundling of costs? As a fellow Conservative, I would have thought that he would be concerned at the bundling of costs into an overall price, which means that the sale price and the 10% commission do not reflect the services that are being offered. The review will deliver greater transparency on what services are being offered, what the price of those services is and what competition might be introduced in respect of those services, so that there is not just an overall 10% figure that may or may not have a bearing on what the park owner is delivering.