Bournemouth Liberal Democrats

Roger West: Evidence to Park Home Inquiry

Residential Park Home Inquiry

Evidence to the Communities and Local Government Committee. Houses of Parliament January 2012

Summary

1. Insistence on the Local Licensing Authority fully accepting their responsibilities to residents living in Residential Park Homes as regards the Site License Conditions
2. Need for a clear English version of the Express Terms which I regard as being the contract
3. Need for greater clarity on the 10% "Commission".

Introduction

I very much welcome this approach by our Coalition Government.

My name is Cllr Roger West and I was first elected in May 1999. I have represented the Redhill & Northbourne Ward for over 8 years and prior to that the Ensbury Park Ward which merged into my present ward in 2003. This is relevant because from 1999 to 2003 I had 1 park home site in my ward but after 2003 I had 4 more making 5 in total. A very unusual situation and one that has enabled me to get a very good insight into the advantages and problems associated with living in Residential Park Homes.

It is also important for the MPs to realise that Bournemouth is a Unitary Authority and is responsible for the licensing of the 9 park home sites in the borough. All 54 Councillors in Bournemouth are responsible for the way in which this function is enforced and must make sure there are sufficient resources allocated.

I have attended 2 campaign meetings in London where we presented petitions and had meetings in the Houses of Parliament. I also accompanied 2 residents when they arranged a meeting in the House of Lords with Lord Graham of Edmonton. He was delightful, knowledgeable and very supportive. He was of the opinion, in general terms, that there was enough legislation, it just needed to be better enforced. I have very similar views with a few exceptions.

Before I get into more detail about specific issues I think it is important to say if more elected Members had taken an interest in their residents' concerns from the start we should not be nationally in the mess we are now in. We must never forget that residents living in Residential Park Homes pay Council Tax, their home is their principle residence and they are on the Electoral Register. They have very similar rights to those of us who live in homes made of bricks and mortar.

Finally, purchasing a park home is probably the last big financial decision that a resident will make. The home will cost between £70k-£200k and the pitch fee at about £150/month equates to £1800 p.a. Therefore expecting to live for at least 25 years in the home amounts to, on average, say £100,000 for the home and about 25 x £1800= £45,000 for pitch fees totalling a staggering £145,000. This is a serious amount of money and it is imperative that residents, when making this commitment, do fully understand the implications. Living in a park home should be a great way to live as the sites should be secure and safe to walk around and the maintenance costs should also be low. Ideal for retirement.

The following section of this report is divided into two sections, Site License Conditions and the Written Statement

Site License Conditions.

It is the Council who is finally responsible for ensuring that Park Home Sites are well managed. It is the Council who issues the Site License and therefore should ensure that the Site License conditions are adhered to. It is too easy to blame Site Owners; acts of intimidation can be dealt with by the State. One also has to ask, what have the ward Councillors been doing?

In my opinion, too many Councils do not take their responsibility to this section of our population as seriously as they should. The Council also handles Trading Standards issues and Environmental Health (possible noisy neighbours' issues). The emergency services like the Fire Service and the police should all play their part. The site of a policeman on foot patrol is very reassuring as I have found out when I initiated it locally.

I would recommend that at the entrance to the site there must be clearly displayed, the name of the Local Authority which has issued the license and the contact details (I think that this would ensure that the licensing authority is recognised as the controlling body). The contact details of the site manager should also be clearly displayed.

The Site Licence Conditions, which the site owner must comply with, are very clear on most basic things. Residents have the right to:-

1. Quiet enjoyment of their home
2. Compliance with basic access and disability issues regarding roads, paths, trip hazards and lighting
3. Provision of car parks which should be hard surfaced and well marked out.
4. Roads on site to be hard surfaced with traffic calming if necessary.
5. Good site maintenance including boundary treatment of all hedges and shrubs not part of the pitch.
6. Provision of notice board.
7. Ensure that the electrical cabling on the site complies with the latest standards and that certificates of safety are seen at least every 3 years.
8. That the electrical provision is adequate. It is difficult to ascertain what is meant by adequate. However a simple solution is if residents assume that they can have any reasonable electrical equipment like their neighbours in a bricks and mortar home, unless expressly and clearly prohibited in the contract between the resident and the site owner- referred to as Express Terms. I have one site owner who prohibits electric showers, electric hobs, will only permit 2 cars by prior permission and very sensibly says no fire-arms. In my opinion these conditions should have no weight unless included clearly in the Contract (Express Terms) and brought, at time of purchase, specifically to the prospective owner's attention

Written Statement.

I have copied the headings below directly from the May 2011 edition of this document. It is published by British Holiday and Home Parks Association (BH&HPA) and is used as the basis of the agreement between the site owner and the proposed purchaser. (I do hope the Committee gets a copy of this Statement.)

• Part 1 the information about the rights of occupier of a pitch
• Part 2, the particulars of the agreement
• Part 2 Annex. This sets out the implied terms which automatically apply to the agreement
• Part 3 Express terms of the agreement. This part of the written statement sets out other terms of the agreement which may be agreed between you and the site owner in addition to the Implied Terms

I find it confusing to say the least. Please note the word "may" in Part 3 above!

This document is the reason why there is so much confusion and arguments between site owners and home owners. It is the basis of the agreement which could be a commitment to a contract worth at least £145,000 and it should be crystal clear with no room for mistakes.

The Site owner must be completely transparent in his dealings with residents. This is, in my opinion, the residents' fundamental right under the rule of law. The basis of the agreement is this Written Statement which is, I quote, "required to be given to a proposed occupier of a pitch"; (please note the word proposed which implies that prospective residents should receive it before agreeing and also fully understand it).

I have recently contacted many residents on park homes about their Written Statement: the Committee would be surprised at the number of residents who do not have one and will say they have never been given one.

One resident showed me his "contract" written on the May 2011 BH&HPA agreement form.

1. He had received it after he had paid.
2. He was not told that his home did not have a water meter which he expected, coming from bricks and mortar, where on change of occupier the local water company insists that a meter is fitted.
3. He did not know that the electricity came as a resale item from the site owner
4. The 10% commission on resale of the home was not clearly explained.

Another resident who had very recently purchased a park home on a different site had the contract written out on a very old style of contract using language that is archaic.

Park home rules. Both documents old and new clearly refer to them. May 2011 BH&HPA form states at 3(h) residents "must comply with the park rules. A copy of the current park rules is attached to this Written Statement".

The older agreement at 3(j) states (if you can understand this jargon) " The occupier undertakes with the owner as follows:- To comply with the park rules from time to time in force a copy of the current park rules being annexed hereto." What does this mean?

More importantly, no one gets a copy of the rules as promised.

I realise that to change the Written Statement might possibly require changes in the law which could take a lot of time but to insist that a clear English version is agreed and signed by both site owner and new park home owner before the home is paid for and occupied, should not be too difficult to organise.

Before the agreement is signed by the site owner and prospective purchaser of a park home the differences between living in a park home and living independently in a bricks and mortar property should be made absolutely clear.

Provision of Water

Does the home have a water meter? YES/ NO

How is water charged for? Is it based on number of occupants in the home? YES /NO

Where are the bills the site owner pays displayed so that residents can understand how they are being charged?

Use of Hose Pipes. These should be permitted providing they are hand held. Any restriction on this is a variation in the "Contract" and has to be agreed by both parties.

How is the use of water by site owner paid for? This should not be included in the

resident's charge.

The booklet written by OFWAT entitled "A guide to water resale" is very helpful.

Example of good practice

Residents on a Berkeley Home (BH) site recently received a letter regarding the cost of water which they (BH), had by negotiation, managed to reduce as follows.

Year from Jan 2011, Water and Sewerage Charges 23.10 plus admin 0.40 equals £23.50

Year from Jan 2012, Water and Sewerage Charges 20.90 plus admin 0.40 equals

£21.30.

Sewerage

Is this included in the pitch fee? YES /NO

If yes how is it calculated for each home?

If the sewerage charge is paid direct to the Water Company, specify name of Water Company

Electricity.

Are there any restrictions on appliances that can be installed in the home, for example power showers and wet rooms, electric ovens and hobs? YES/NO

Supply

This is a complicated subject as there are pros and cons with having the supply direct from the Electricity Company as opposed to buying it from the site owner.

Purchasing from the Electricity Company enables residents to take advantage of dual fuel accounts with direct debits etc. However I have one site in my ward where a large nationally based company has secured an excellent deal.

Example of good practice

Berkeley Homes have managed to negotiate the following excellent deal for their residents. Unit price up from 7.33p to 8.37p per unit and the standing charge will increase from 4p to 27p per month plus 5% vat. They said that their existing supplier wanted 9.31p. They say that the average resident will be at least £100.00 per year better off than if they were a direct customer.

Many site owners claim to do their best for their residents but do not display the site bill.

Heating.

This is a very difficult subject and again I think that complete transparency is necessary. Modern Park Homes seem to me to be very energy efficient with good insulation in walls, roof and the floor. However many older homes do not have these advantages which increase dramatically the cost of heating. If the home is connected to town gas then the cost of heating should not be too excessive. But if the home is all electric (unlikely) or relies on calor gas it is not only very expensive but also difficult to manage.

For the prospective purchaser to be fully aware of this problem a possible solution could be to produce the heating bills for the previous 2 years for the home for any home more than 3 years old not using town gas.

Porches

It should be clearly stated in the contract that enclosed porches are permitted of a size 1m x 2m provided the space between homes is the recommended 6m.

Porches on older homes are a very important feature as not only do they help retain heat but also add greatly to the sense of security so essential for our more elderly residents.

Pitch Fee

This is again something requiring complete transparency. I have come across almost identical homes on similar sized plots on the same site paying up to £40 per month extra in pitch fee. This only happens because the site owner likes to keep this confidential. The only beneficiary is the site owner and it is against the interests of the home owner. Pitch Fees normally increase on a percentage basis so this gap will always be increasing.

However it will also have an effect on the resale value which will not be pointed out to the purchaser at point of sale.

Sale of the mobile home

Please look at Page 23 of the May 2011 form published by the BH&HPA. You will find a reference to a "commission" payable to the site owner. This had been previously mentioned on Page 11 of the Statement at section 8 sub section 2 where it states "the owner shall be entitled to receive a commission on the sale at a rate not exceeding such rate as may be specified by an order made by the Secretary of State." Section 3 further down the page seems to qualify the above statement using the word "may" and then states the maximum rate currently fixed at 10%.

This jargon is completely unacceptable in today's society.

Why should the Secretary of State be involved in a contract like this?

Why is this payment referred to as a "Commission"? Surely one has to earn a Commission.

As Park Homes increase in value this commission is reaching unacceptable levels.

The wording implies that this "commission" is negotiable; therefore this should be made clear to the prospective purchaser at the time of the initial purchase discussions.

A clause this fundamental to the performance of the contract should be clearly highlighted and specifically brought to the attention of the prospective purchaser.

It has also been pointed out to me by a resident that refurbishing park homes is becoming more popular. Why should the site owner gain financially from this extra investment by the home owner?

The Written Statement suggests that if the "proposed occupier" does not understand something they should get advice from a solicitor or a Citizens Advice Bureau. Most homes to my knowledge change hands with no legal advice and therefore it is essential that the Agreement (Written Statement) is crystal clear.

Key Points

It is the Council who is finally responsible for ensuring that Park Home Sites are well managed

I would recommend that at the entrance to the site there must be clearly displayed, the name of the Local Authority which has issued the license

The Site owner must be completely transparent in his dealings with residents.

The site owner should be responsible for the provision of steps and handrail to each park home. They should be well built and designed to comply with normal building regulation standards. This I have been informed is not part of the Site Licence conditions but should be.

Cllr Roger West

Redhill & Northbourne Ward,BournemouthBC

Liberal Democrat