As a result of the consultation process on the Park Homes Commission Rate (See the above Link), the Minister in the Welsh Assembly proposed that the commission payable on the sale of a park home should be reduced from the current maximum of 10 percent by one percent each year for five years. This would bring the maximum rate of commission down to 5 percent. We in IPHAS and NAPHR pointed out that the park owners could claim an increase in pitch fees to compensate but the Minister replied that this could be settled by the tribunal system.
In practice, the tribunal would have to follow the law and implied term 18(1)(d) states that any change in the law affecting the management of the site could be considered at the pitch fee review. Therefore, we wrote to the Welsh Assembly expressing our concern at the probable increase in pitch fees resulting from their proposal. When this appeared to have no effect, we combined our letters with letters from the BH&HPA and NCC. However, we did make it known to all that our reasons were different. Our reasons were to prevent an increase in pitch fees while the BH&HPA and NCC were concerned about the park owner’s income.
The Welsh Assembly have now withdrawn their proposal, but that is only temporary, and IPHAS will continue to monitor the situation. We will explain to the Welsh Minister, that a simple amendment to the implied term could have the desired effect.