The Government’s response to better deal for mobile home owners consultation
The Government has recently released its response to the Select Committee Report entitled a Better Deal for Mobile Home Owners and has concluded that the Report confirms ‘there are serious problems with the sector’ and that ‘malpractice is widespread’. This is perhaps unexpected.
The main conclusions reached by the Government are as follows:
- SALE BLOCKING – This is the practice of Site Owners using the current legislation, which requires pre-approval from a Site Owner before a resident can sell their mobile home, to prevent sales. This is done by insisting on interviews with the prospective purchasers for example and then refusing to grant approval of the sale The Government considers this to be a ‘serious problem’ and agrees that mobile home owners should have the right to re-sell their home. The Government concluded that the role of a Site Owner in the sale of a mobile home should be removed.
- SITE LICENCES – The Government is again in agreement with the Select Committee and is to propose that there should be no upper limit on fines for site licensing breaches.Importantly the Government is seeking to introduce guidance in respect of the levels of compensation. It is proposed that any compensation amount should reflect the benefits that a Site Owner might gain from not complying with legislation.
- FEES – The Government considers that allowing a local authority to charge for their licensing functions would be appropriate. However it has concluded that any fee structure must be ‘transparent and proportionate’.
- FIT AND PROPER PERSON TEST – During its consultation, the Select Committee had suggested the introduction of a fit and proper person test. This test would allow a local authority to consider the fitness of a Site Owner to hold a site licence and in essence exclude those who aren’t fit and proper from owning and running park sites.
The Government has confirmed that it considers the current measures are sufficient to control this problem and it therefore does not favour such a test. This will be some relief to the sector.
The proposed Mobile Homes Bill has now completed its journey through the House of Commons. It received its First Reading in the House of Lords on 3 December 2012. This is a formality which starts the progress of the Bill through the House of Lords and on to Royal Assent. The next stage will be for the Bill to go through its Second Reading at the House of Lords at which the Members of the Lords debate the main purposes and principles of the Bill and raise any concerns they may have. We are currently awaiting a date for the Second Reading but the outcome is likely to be very interesting.
Partner and Head of Commercial Property
Commercial Property
NDyson@LawBlacks.com
0113 227 9344
@NickLawBlacks
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Nicholas Dyson
