MPs join LGA in calling for tougher park home licensing regime

MPs have called for the licensing regime for park homes to be modernised, after warning that residents – including the elderly – were being exploited by unscrupulous site owners.

In a report, the members of the Communities and Local Government committee described the existing legislation as out of date and “more suited to the 1960s”.

During its inquiry, the committee identified a number of problems with the current regime including the fact that the maximum fine of £2,500 was a “wholly inadequate deterrent”.

Other problems include:

  • Sale blocking: where a site owner prevents a resident from selling their home on the open market by withholding 'approval' of the prospective buyer
  • Harassment by site owners, “which appears to be on the increase”
  • Confusion over contractual obligations between site owners and home owners
  • Legislation which leaves residents with little or no ability to take action if the site is not properly maintained.

The CLG committee’s recommendations include introducing legislation to remove a site owner’s existing ‘right to approve’ buyers. Sellers would be required to make buyers aware of their obligations towards a site and its owner in writing before sale transactions take place.

The Residential Property Tribunal should – pending that legislation – be handed clearer powers to award damages and compensation to park home owners affected by sale blocking.

Clive Betts MP, chair of the CLG committee, said: "The current legislation is beyond inadequate. It fails to deter unscrupulous site owners, fails to give local authorities effective powers to improve conditions, and fails to protect residents, many of whom are retired. Rules governing this sector have evolved piecemeal, and need to be updated as soon as possible."

Betts claimed the park homes industry had been infiltrated by a rogue element. He said: “While we recognise that there are some good site operators, the vast majority of the evidence we received suggests that malpractice is widespread across the sector: Complaints from residents about unfair fees, poor maintenance and site owners making it difficult for residents to sell their homes are common.

“The Committee found that a quarter of park home residents had experienced problems with maintenance, security or safety standards; that nearly a fifth of residents had experienced problems with the written contracts they had with site owners; and that residents had experienced intimidation by site owners or managers at a significant number of sites in the UK."

The CLG committee said the Government's consultation A Better Deal for Mobile Home Owners was welcome but warned that more needed to be done.

It added that if the improvements expected to come from the Government’s proposals did not materialise, then local authorities should be allowed to withdraw and withhold licences from site owners found not to be “fit and proper”.

The CLG committee’s report, which can be viewed here, comes just days after the Local Government Association also called on ministers to strengthen the licensing rules for park home sites. 

Fines should reflect the value of park homes and the cost of maintaining them, the LGA said.