Mobile Homes Bill

Steve Brine Excerpts

Friday 19th October 2012 Commons Chamber

[Steve Brine (Winchester) (Con)]

It is a pleasure to follow the hon. Member for North East Derbyshire (Natascha Engel), who has worked with many of us on the Bill over many years to get us to this day.

Like many other Members, I tend to be in my constituency on a Friday doing a surgery and numerous other engagements. I therefore often do not have the pleasure of being present on private Members’ Bill Fridays, unlike some other Members. In fact, the last time I came here on a Friday was to support the Second Reading of a private Member’s Bill—the Daylight Saving Bill—and that somewhat dates it. I remember that I had to get through an ice storm in Winchester, and I broke my paternity leave for my second child—I am still paying for that. I hope that gives the House and the promoter of the Bill some indication of the importance that I place on it. That is why I am here to speak in support of it today.

As others have, I congratulate my hon. Friend the Member for Waveney (Peter Aldous) on his success in the ballot and on taking up the cause. It is a complex issue, and he has taken to it with his usual gusto. We have had many conversations in which we have communicated to him how we have got this far, and it has been good to have him on board.

If I had a pound for every Member who has said to me in the two and a half years since I was elected that they have a lot of park homes in their constituency, I would be a very wealthy man. People sometimes think that this is a marginal issue that affects a small number of people living in coastal areas. Not so. There have been varying estimates of the park home population, and the Consumer Focus report that has already been mentioned many times this morning, and will be mentioned many times again, states that about 160,000 people in England live on just under 2,000 sites. I think that is about right, and it is the most up-to-date figure that we have seen.

I represent eight sites across Winchester and Chandler’s Ford in Hampshire, and I reckon that in the six and a half years for which I have been in post there, including the two and a half years since my election, I have knocked on pretty much every single door. I soon got a pretty good feel for what park home residents are saying, and I found that they—like most of my constituents —were not exactly shy in coming forward.

Let me be crystal clear: not all park home owners are rogues or difficult people. I have met many in my constituency, and elsewhere through the mobile homes all-party group, and most are decent people running legitimate businesses and providing genuinely affordable homes to many of our constituents. Furthermore, park home residents do not talk to their MP only about park home issues; they use the health service, schools, and experience the benefit system much like all our constituents, and we should remember that.

As I have said many times in the House and in meetings upstairs, my constituency contains good and bad site owners. It is fair to say, however, that by no means do I see the worst of the situation, and some might ask what my interest in the subject is. Having talked to park home residents over many years, I could see that there was a problem and a need to tighten the law. Since becoming an MP and dealing with my post bag and holding surgeries, I have seen this problem time and again. I have spoken to constituents who are frightened and intimidated, and who just want a bit of peace and quiet to go about their lives like the rest of us. That is not too much to ask.

During my short time in the House, many Members have asked questions about park home living. Already in this Parliament, questions have been raised with the Prime Minister at Prime Minister’s questions, and there have been debates in Westminster Hall and a Backbench Business Committee debate in this Chamber. As we have heard, and will no doubt hear again today, such debates are peppered with appalling stories of park home residents who are far from living the dream—they are living a nightmare. The trick is to make those stories count, and to get a real response so that we can change the law. My fellow vice-chair of the all-party group, my hon. Friend the Member for Mid Dorset and North Poole (Annette Brooke), has done more than most to get us to this point today, and we are incredibly grateful.

Hon. Members will hear a lot about the all-party group this morning. It is a real working group and I remember a meeting at the Department for Communities and Local Government that was held just before Christmas last year with the former Housing Minister, my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), and also attended by the hon. Member for North East Derbyshire, and my hon. Friend the Member for Mid Dorset and North Poole. We started to see the Bill coming together, and it was exciting to see years of work beginning to go down on the page. Let me recognise again the work of Consumer Focus in this area. Its report, “Living the Dream?”, launched last Tuesday, is a significant and first-class piece of work, and we should thank Consumer Focus for it.

It is a pleasure to support this Bill, which I hope will bring to an end years of uncertainty and suffering for thousands of mobile home residents across the country. I do not think it is perfect, and there are issues concerning the timing of some of the provisions and when they will become a legal reality. It does, however, contain many positive provisions for which we have long campaigned, and I will touch on a couple of those and highlight the experiences of some of my constituents.

Although many mobile home residents are content with the condition of their sites, a recent survey by Consumer Focus found that a quarter of all residents reported problems with maintenance, safety or security. Those issues often involved badly maintained roads or paths, inadequate street lighting, or problems with residents’ private or communal gardens. In some circumstances, the appalling condition of site roads can mean that rubbish trucks, and even ambulances, are unable to access the site.

Many park home residents in Winchester have written to me about their sites on a range of issues. One constituent wanted to draw poor parking facilities to my attention, as well as a badly maintained drainage system that resulted in water pouring into and flooding his garden on an almost daily basis. There was poor quality workmanship on parts of his plot and his home and, to make matters worse, the owner of the site refused to rectify any of those faults, and subjected my constituent to verbal abuse and barely concealed threats when he dared to complain. It is almost as if we have become desensitised to such stories, but they are real and should never be underplayed.

Another constituent wrote to me outlining serious concerns about the upkeep of the site on which he had lived for nearly eight years. During that time, no improvements had been made to the site, which he understandably found pretty frustrating. Perhaps more worryingly, since the site had been sold to a new owner, conditions had deteriorated further with potholes on the road becoming an increasing problem. On top of that, much of the street lighting was not in working order, making it pretty much pitch black in winter evenings. My constituent told me that he no longer felt safe taking the dog round the block after dark. One e-mail I received was sent on behalf of many residents on the site, some of whom, as we have heard, are elderly and have no access to e-mail. I was assured that the majority of residents felt the same way, although, as other hon. Members have said, many did not want to come forward and speak to their MP—that tells a story in itself.

Such problems are not minor inconveniences; they have a profoundly negative impact on the quality of life of residents in our constituencies, and that is why this Bill is important. Surely, as constituency MPs we are interested in the quality of life of our constituents, and time and again I have heard that that is being affected for those living on park home sites. That is not good enough.

The current licensing arrangements are inadequate because—perhaps understandably—local authorities often seem to place greater importance on breaches of licenses that pose a risk to the health and safety of the residents, as opposed to those relating to maintenance that do not on the surface appear to pose the same risk. Park home residents in my constituency frequently mention the provision of utility services and, as my hon. Friend the Member for Waveney said, they are often left with much less consumer protection than individuals living in other sorts of homes, owing to the lack of any direct relationship with the provider of gas, electricity or water. I have been made aware of many examples across the country where residents pay for electricity through the site owner, but that way of operating is obviously open to abuse and leaves residents with little clarity. That is why, if this Bill gets to Committee, I will support calls by some of my colleague to increase the transparency provisions of the Bill to cover utilities.

Under the current law, if conditions attached to the granting of a licence are breached, the local authority has the power to prosecute the site owner only in the magistrates court, and they are not able to serve notice requiring works to be undertaken prior to prosecution. Many local authorities are therefore reluctant to prosecute because the statutory set fines are low—they were set in stone in the previous legislation; we would have required primary legislation to change that, which is another reason the Bill is important—and the resources required are considerable.

The Bill seeks to address those issues in several ways. Clause 4 amends section 9 of the Caravan Sites and Control of Development Act 1960 by providing that where a site owner fails to comply with a licence condition, the local authority may serve a compliance notice on the owner, outlining the steps that need to be taken to meet the licence condition. It is vital that a greater range of enforcement tools are available to local authorities, as that will make it easier for site conditions to be maintained. We have longed campaigned for that, and it is welcome in the Bill.

Clauses 5 and 6 enhance that measure by stating that a site owner who has been served with a compliance notice that has become operative under the proposed new section 9H, is guilty of an offence if they fail to take the steps outlined in the notice within the required time frame. Both changes provide local authorities with better enforcement powers and will go a long way to improving site conditions where necessary.

[Mr Robert Buckland (South Swindon) (Con)]

My hon. Friend makes an important point. At the moment, the only option available to local authorities is that of prosecution in the magistrates court. That is costly, the maximum sentence is quite low, and that deters enforcement authorities from taking action and provides an incentive to the site owner to evade his or her responsibilities. The powers in the Bill are essential if we are to improve enforcement against unscrupulous site owners.

[Steve Brine]

Absolutely. As usual my hon. Friend hits the nail on the head. I hope that local authorities will not become litigious organisations as a result of the Bill, and I like to think that some of the sticks that have been brandished today will be noted loud and clear across the country. The provisions in the Bill are critical.

I welcome the fact that local authorities will be allowed to demand expenses when a compliance notice has been served under section 9A of the 1960 Act. It is crucial that local authorities are able to recover any expenses incurred, to ensure there is no disincentive for them to issue such notices. The provisions in the Bill that provide local authorities with the power to carry out works on a site in certain circumstances are also welcome, as that will surely put an end to some of the worst cases of neglect. I hope that a message goes out from the House that such actions should be the last resort for local authorities, and that the new powers will act as sufficient warning to site owners who continue to ignore their responsibilities. I suspect, however, that I am being naive in that regard, and that is why those clauses are in the Bill.

Under the current law, all privately owned sites are required to be licensed by the local authority. The conditions attached to the licences are designed to ensure that the site is in a suitable state of habitation and maintained to a good standard. However, because local authorities are currently unable to charge for their licensing role, such functions are often under-resourced. A Select Committee on Communities and Local Government report published in June found that the current law is inadequate because it does not provide local authorities with effective powers to monitor or improve site conditions.

I welcome the reforms to the licensing system in the Bill. By allowing local authorities to charge fees for the issue or varying of licences on relevant protected sites, the Bill will greatly enhance the effectiveness of the licensing regime. In doing so, the Bill recognises the importance of creating a self-funding model under which local authorities are not burdened with the costs of administering the licensing system. An effective licensing regime hinges on the cost of the licence being adequate to cover an appropriate inspection arrangement. An annual licence fee will act as a useful income source for local authorities—as we have heard, they can use it to offset the cost of enforcing licensing conditions. By providing better resources to police the system, the fee will help to raise maintenance standards and ensure that the licensing conditions are adhered to more thoroughly.

Although the Bill allows for the annual licensing fee to be recoverable through pitch fee increases—I recognise this is controversial—rather than through a new licence application, park home residents should not be liable for any costs that result from the new requirement for site operators to pay a site licensing fee annually. Ultimately, the revenue from the sale of park homes—the 10% commission that owners receive—should provide revenue to site owners for the licence fee. In an ideal world, the Bill would remove the 10% rule altogether—I have argued for many years that the rule is a scandal—but it does not. That is the context.

Under current legislation, park home residents who want to sell their home must have the new buyer approved by the site owner before any sale can proceed. The process can occasionally be used by site owners, in effect, to block the sale of a home in an attempt to get the current owner to sell their property back to the owner, which is clearly totally unacceptable—we have heard many examples of that, although I have thus far not heard of any from my constituency. Park home residents should have the right to sell their home freely and without unfair interference from the site owner. I am therefore very pleased that the Bill includes provisions to remove the requirement.

A number of constituents and many more park home owners across the country have written to me because they are worried about the bullying or intimidation that often accompanies such unfair interference.

[Dr Thérèse Coffey]

I might pre-empt my hon. Friend’s point, but does he agree that we should not raise the expectations of current park home owners, because the Bill does not apply retrospectively? Could the promoter and the Government work to ensure that it is applied retrospectively?

[Steve Brine]

The all-party group discussed that point this week, and my hon. Friend will want to take that up with the promoter of the Bill. I believe I am right in saying that the Department’s legal advice says that applying the measures retrospectively is not possible, which is regrettable.

One site owner from my own constituency wrote to me this week on the subject of site owners’ involvement in park home sales. For the record, he said:

“Dear Mr Brine…We have read the details of the proposed changes in the Mobile Homes Bill and are most concerned about the change that negates the need for site owner’s approval of purchasers. Solicitors are not normally involved when a home is sold and the only way a purchaser can obtain correct information on their future rights and responsibilities is from the site owner. The site owner also ensures the correct procedures are followed so that the rights are properly assigned. Sellers have a vested interest in omitting and even misrepresenting the facts and it is not practical for a purchaser to rely on civil proceedings…once the seller has his money and has left the park (and is often not traceable)…If the proposals become law, we can foresee a situation where elderly purchasers will pay large sums, for the ‘home of their dreams’ only to find out, at a later date, that they have been cheated by the seller and their rights and responsibilities are not as envisaged. Major problems will occur if the purchaser finds they are not able to abide by the Park Rules and as a result, could face eviction.”

I can see that site owner’s point, but I take issue with one line, although some might wonder why I have chosen only one. The line I take issue with is this:

“Solicitors are not normally involved when a home is sold.”

The Bill’s promoter eloquently told us that solicitors are involved in only around 1% of park home sales. That is crazy. Although the Bill does not—and legally could not—demand a change, I suggest in the strongest terms possible that it must change. Many park homes sell for hundreds of thousands of pounds. To make such sales without the involvement of a solicitor is a most unwise move, and the park home community must face up to that inconvenient truth.

I should like to highlight a couple of cases from my constituency that illustrate the extent to which site owners are able to take advantage of residents by significantly raising pitch fees, year after year. In one case, a constituent who happily accepts that pitch fees increase with inflation wrote to me expressing his concern that his pitch fee was rising by £500 per year, well over the rate of inflation. Another constituent who wrote to me on this issue was careful to point out that he had no problems with the site owner—we have heard that before—but did have concerns about how pitch fees were calculated. There is currently little transparency over what expenses are covered by the pitch fees or how increases are calculated. I therefore warmly support clause 11, which amends parts of the Mobile Homes Act 1983 to require a site owner who serves a pitch fee review notice proposing an increase in the pitch fee to provide the resident with an accompanying document that meets the requirements set out in paragraph 25A. That transparency is most welcome.

I am an enthusiastic cheerleader for the Government’s energy policy and the green deal, having served in Committee on the Energy Act 2011—the green deal is one of the best things the Government have done. I asked the Secretary of State for Energy and Climate Change in March 2011 whether park home owners would be eligible for the green deal, and the Minister of State, Department of Energy and Climate Change, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker) has said:

“Park homes will be able to apply for the Green Deal as long as they fulfil the same criteria as other types of eligible buildings.”—[Official Report, 25 November 2011; Vol. 536, c. 616W.]

However, it is my understanding—Consumer Focus says this in its report this week—that park homes will not be eligible, because the new green deal assessors will not be able to carry out their standard assessment procedure, and because park homes are exempt from requiring an energy performance certificate.

Green deal finance is also not available to some park homes because, as I have said, owners pay for their utilities through the site owner’s joint electricity Bill. I mentioned that to the Minister earlier, but I urge him speak to his colleagues in the Department of Energy and Climate Change and find a way to make the green deal work for park home owners, because they are among the most fuel poor in our country and they deserve better.

Park home owners deserve better across the board. They deserve better when it comes to buying and maintaining their homes, and better when it comes to enjoying the environment around their homes. They deserve a lot better when selling their homes and, as I have just said, when it comes to staying warm. In short, park home owners should be able to live the dream like anybody else. The Bill will help. It could be a dream-making Bill in some important respects, which is a great thing. I urge Members to join me in supporting it.

[Jacob Rees-Mogg (North East Somerset) (Con)]

I beg to move, That the House sit in private.

Question put forthwith (Standing Order No. 163), and negatived.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)]

It is a pleasure to be able to stand at the Dispatch Box today when there is total House coalition on an issue which I would no doubt have found myself speaking to on a Friday as a Back Bencher. I congratulate my hon. Friend and neighbour the Member for Waveney (Peter Aldous) on the Bill that he has introduced and on his success in the ballot for private Members’ Bills.

As was pointed out earlier, a company has a duty to protect its minority shareholders. This is a clear case in which we as a Government have a similar duty to protect a small part of society in the best way we can. I congratulate all the campaigners and my hon. Friend and neighbour on introducing a Bill to do just that. I understand the issue fully both as a Minister and as a Member of Parliament. In Great Yarmouth, as in other coastal towns, we have our share of such properties. We also have examples of good ownership, which the Bill will help to protect.

It is important to reiterate some of the comments made this morning to show the breadth of support and the range of topics covered. My hon. Friend and neighbour outlined the Bill. I congratulate hon. Members on their cross-party support and thank the hon. Member for North East Derbyshire (Natascha Engel) for her comments, emphasising the importance of behavioural issues for park owners and of protecting the rights of park home owners. My hon. Friend the Member for Winchester (Steve Brine) highlighted the size of the industry. I noted his comments on the green deal and will pass on to the relevant Department his remarks on the Floor of the House and in a conversation earlier today. He was right to draw attention to the excellent work done on the issue by Consumer Focus.

Everyone is better off for having heard what the hon. Member for Ellesmere Port and Neston (Andrew Miller) had to say, fortunately in public. I entirely agree that it is hugely important that we achieve the right touch as well as a light touch. The Bill can certainly achieve that. Special congratulations are due to the hon. Member for Mid Dorset and North Poole (Annette Brooke) on being such a long-term campaigner on the issue, as I know from my time on the Back Benches. She emphasised the importance of the “fit and proper person” provision being, in her words, in our back pocket.

My hon. Friends the Members for South Swindon (Mr Buckland) and for Hexham (Guy Opperman) highlighted a message to go outside this Chamber, and, to an extent, outside the Bill’s remit. They spoke about the importance of good legal advice on an investment of the scale we are discussing; clearly they were not looking for any business for themselves. My hon. Friend the Member for South Swindon also emphasised the need to work, particularly in Committee, to make the Bill future-proof, and to retain the power in our back pocket—a point also made in respect of the phrase “fit and proper person”.

I thank my hon. Friend the Member for Gloucester (Richard Graham) for his comments. I will do my best on this Bill to match the speed of Usain Bolt, as I am sure we all will. I will restrain myself from using the hand gestures on the Floor of the House, although I might be persuaded to do so for charity at another date.

My hon. Friend the Member for Hexham was right to highlight the need for protection, and I much appreciated, as I am sure we all did, his history tour. If anything, I was slightly disappointed that it was not matched by the usual tour through Greek history given by the hon. Member for Birmingham, Erdington (Jack Dromey). No doubt that will be saved for anther day.

My hon. Friend the Member for Stafford (Jeremy Lefroy) rightly highlighted how widespread this problem is, and said that it is an issue not only for coastal towns, such as Waveney and Great Yarmouth, but throughout the country. One of my near neighbours, my hon. Friend the Member for Suffolk Coastal (Dr Coffey), constructively highlighted some of the issues that the Bill needs to deal with. I noted her comments on the SI and Ofgem, which I will pass forward.

We will all have noted and taken on board the points made by my hon. Friend the Member for Epping Forest (Mrs Laing)—they were also eloquently made by the hon. Member for Birmingham, Erdington—highlighting some of the hugely unscrupulous behaviour in this sector that must be stamped out, to protect not only the residents, who are our prime focus, but the reputation of the good owners, who are by far the majority throughout the country.

[Steve Brine]

I welcome my hon. Friend to his new post. The “fit and proper person” test is nice and neat in our back pocket, but may we have his assurance that if, as I said earlier, I am being naive and the Bill does not have the desired effect, the Minister and the Government are prepared to dip their hand into that pocket?

[Brandon Lewis]

I thank my hon. Friend for the opportunity to confirm that. Yes, we will, and I will highlight that point specifically in a few moments.

As has been said, the Bill affects only a small number of homes, but it is hugely important to the people who live in those homes, and that is what matters. It will deal with about 85,000 park homes on 2,000 sites. The sector represents only about 0.5% of the housing stock in England, but it is vital. Its residents have rights just like everybody else, and they matter a great deal to all of us. The fact that the sector is small does not mean that we should not address the injustice that is rife in it, and the Bill goes some way towards doing that. That is why the Government fully back the Bill.

Let me explain the Government’s position and why the Bill does not contain more—a point on which some Members have commented. The Bill builds on the thorough and searching inquiry conducted in the spring by the Communities and Local Government Committee. I congratulate the Committee on the report and thank them for it. The Bill takes forward a number of the Committee’s recommendations. As we have heard today, there is a good deal of consensus on the fact that legislative reforms are desperately needed. There is cross-party support for such reforms. Members have given examples of unacceptably unscrupulous behaviour towards older and sometimes vulnerable home owners, disgraceful acts that must not be tolerated for a moment longer.

For Members with park homes in their constituencies, these stories will unfortunately be all too familiar. My hon. Friend the Member for Waveney reminded us that the Prime Minister has himself called for urgent action to tackle the problems in the sector. The Bill will do that, but the Government are mindful, as is my hon. Friend, that there are many good site owners in this industry who provide a professional, top-class service to their residents and respect their rights. Sadly, their good work is too often masked by the unacceptable behaviour of the unscrupulous operators who pervade the sector.

We want to create a level playing field where the good operator does not face unfair competition from unscrupulous ones who ignore their obligations and the rights of others. We want to see the industry put on a sustainable footing for the future, so that those who run a decent and honest business can flourish and there is no place for the unscrupulous and for criminals. We want home owners to be confident that their homes are safe and their rights are respected. The Bill aims to achieve that by introducing measures targeted at those who ignore their obligations and exploit their residents, while placing minimal burdens on those businesses that manage their sites well and respect their residents’ rights—the right approach with a light touch.

The Bill focuses on three key areas: reforms to the antiquated licensing regime that applies to park home sites; removing the ability for unscrupulous operators to block lawful sales by residents of their homes; and ensuring that pitch fee increases are transparent to prevent residents from being overcharged. All those issues were identified in the Department’s consultation paper on reforms to the sector published in April.

The Bill also includes a provision that would permit the Government to introduce a “fit and proper person” test through secondary legislation, should that prove necessary, which was one of the Select Committee’s recommendations. I will say a few words about why the Government have accepted that recommendation. It is not our intention to introduce an industry-wide “fit and proper person” requirement at present. I sincerely hope, as many Members have commented today, that the introduction of such a test will never be necessary. New bureaucratic burdens on good businesses must be a last resort. As we have heard this morning, the majority of site owners are good.

However, we must also ensure that conditions in the sector improve, which is why the Bill focuses on making it simply unprofitable for unscrupulous operators to exploit residents. We accept the risk that some of the worst operators might try to persist and that it might therefore be necessary to take powers later to remove them directly from the industry. Therefore, we will review the situation after a suitable period to see how behaviour in the industry has changed. If unscrupulous practices persist, we may consider introducing the “fit and proper person” test. A clear message must go out to bad owners that their behaviour will not be tolerated and, if it continues, the Government will act.