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Wednesday, 3 October 2023

Park homes - paying for the land you use

If you own a park home (also known as a static caravan or mobile home) you also have to rent the land it sits on. Find out what your rent covers and the process the mobile home park owner must go through to increase it.

Renting the land your park home sits on

The park owner can charge you weekly, monthly or yearly to rent the land your park home sits on. This charge is also known as a ‘pitch fee’ or ‘site fee’.

You can look at your ‘written statement’ to find out how much and how often you have to pay your pitch fee. Your written statement is the agreement you have with the park owner which sets out the rules (‘terms’) of owning a park home. See ‘Owning a park home’ to find out more about your rights and responsibilities as a park home owner.

Your pitch fees also allow you to use common areas, like laundry rooms and picnic areas. They do not cover your utilities (water, gas and electricity) unless your written statement says they do.

Changes to how much you pay to rent land

If the park owner wants to increase your pitch fee, they have to go through a process called a ‘pitch fee review’. They can do a review once a year and propose to charge you a new pitch fee starting on the ‘pitch fee review date’.

The pitch fee review date should be listed in your written statement. The pitch fee review process is:

1. The park owner proposes a new pitch fee

The park owner must tell you in writing why they want to change your pitch fee and by how much. They must give you the new pitch fee notice 28 days before they plan to start charging you the new pitch fee.

Park owners decide on how much to change pitch fees by looking at the ‘Retail Prices Index (RPI)’ for the rate of inflation. This means they look at how much prices for things in the UK have changed since your last pitch fee review. For example, if prices have gone up by 2 per cent, the park owner may want to increase your pitch fee by that amount.

Your pitch fee may also be affected if:

  • the park owner spent money on improvements (and they asked you before they made improvements and most residents did not disagree in writing)
  • the park owner’s costs to run the park have gone up because of new laws which directly affect actual management or maintenance costs

2. Decide if the new proposed pitch fee is fair

To decide if the pitch fee proposed by the park owner is fair, you can ask them for supporting information. This means they have to give you documents or records (for free) which show why they think your fee should be higher. For example, if they want to increase your pitch fee because they spent money making improvements, you can ask for receipts.

3. If you agree to a new proposed pitch fee

If you agree to the new pitch fee, you can let the park owner know or just pay the new fee when it’s due.

The park owner can start charging the new pitch fee 28 days after giving you the written notice proposing the new fee.

4. If you disagree with a new proposed pitch fee

If you believe the pitch fee amount the park owner has proposed is unfair, you should tell them. You can try to work out an amount you both can agree on.

If you and the park owner can’t agree on a new pitch fee amount, the park owner can apply to a county court. The court will decide if the proposed pitch fee is fair by looking at things like inflation and improvements the park owner has made. It may also take into account the conditions at the park and if they have become worse, for example, if potholes have formed in the streets.

Until the court reaches a decision, you should continue to pay your current pitch fee amount.

The court’s decision will tell you if you should pay the park owner’s proposed pitch fee or if you should pay a different amount. If the court thinks the pitch fee proposed by the park owner was unreasonable, it may order them to pay your court costs.

You’ll have to pay the new pitch fee amount from 28 days after the park owner first sent you the new pitch fee notice. This is called ‘backdating’ and you’ll owe the difference between your old pitch fee and your new one. You have to pay what you owe within 28 days.

Getting advice on pitch fee increases

If you think the park owner is trying to increase your pitch fee unfairly, you should get advice. You can start by contacting Community Legal Advice, charities Shelter and Age UK or a Citizens Advice Bureau for free if you have questions.

Advice helplines

Community Legal Advice helpline: 0845 345 4 345

Shelter housing advice helpline: 0808 800 4444

Age UK Advice helpline: 0800 169 6565

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