Government launches review into controversial park homes sale fee

The Government has launched a review into a controversial fee added to the sale of a park homes following long-standing calls from campaigners for it to be scrapped.

Under the Mobile Homes Act 1983, a park home site owner is entitled to a commission of up to 10 per cent of the sale price when a resident sells their park home.

Campaigners have previously stated they are unclear about what this money is used for and raised fears for the impact upon residents.

Nationally, the Park Home Owners JUSTICE Campaign (PHOJC) has been fighting to have the charge scrapped for years.

Following consultations and research into the issue, the Labour Government has this month launched a fresh review into the charge to ensure ‘it is fair and transparent for residents and site owners’.

This review, which has been initiated in response to a commitment from Housing, Communities and Local Government minister Matthew Pennycook MP, is a call for evidence and will explore the rationale behind the payment.

In 2021, the previous Conservative Government commissioned a report looking into the impact of changing the maximum park home sale commission fee.

The report, published in 2022, made four recommendations, which included exploring and clarifying the rationale behind the commission.

In 2023, the Ministry of Housing, Communities, and Local Government (MHCLG) called for stakeholders to submit their views on the report’s recommendations.

The Government said the responses ‘reinforced the views of the Government that there was no clarity or consensus within the sector on the rationale of it’.

The call for evidence looks to establish the reasons for charging the commission, what it pays for and how it is calculated, how the fee is linked to other aspects of the Mobile Homes Act 1983, and to foster a ‘better understanding’ of the sector’s business model.

Josephine Payge, a resident of Frogmill Spinney residential park within Hurley Riverside Park and her neighbour Charles Brooks became involved with PHOJC in recent years and previously spoke to the Advertiser about their worries over the impact of the commission fee.

Reacting to the news of the latest review, Josephine said: “From my perspective it’s great that it is being discussed and my wish as always is that the commission of 10 [per cent] is abolished.”

Maidenhead’s MP Josh Reynolds is vice chair of the All-Party Parliamentary Group on Park Homes (APPG) and previously joined PHOJC campaigners to deliver a petition to Downing Street, outlining why the charge should be scrapped.

While he is ‘pleased’ the review is being undertaken, he hopes it will lead to the Government abolishing the charge entirely.

He said: “I’m really pleased that the Government have launched the consultation.

“I think the worry is that the Government have done many consultations on the 10 per cent sale fee over the last however many years and this just seems to be consultation after consultation after consultation.

“I’d like to see the Government moving slightly quicker on this.

“I am concerned that park home residents won’t want to fill in yet another consultation, feeling that very little will change.

“I think this needs to be the last consultation and at the end of this consultation, we’ve got to scrap the 10 per cent.”

Mr Reynolds has written to park residents on the issue, trying to ensure that as many residents as possible respond to it, he said.

Mr Pennycook said: “Gathering vital information about the commission from the sector will allow us to act and thereby provide the clarity and certainty that park home residents and site owners have rightly been demanding.

“I encourage everyone with an interest in the commission to contribute to this call for evidence.”

The call for evidence will run for 12 weeks until May 29.

Following this, the Government will review the responses before publishing a formal response.

The MHCLG were contacted for further comment.