Mobile Homes (Pitch Fees) Act 2023

As park owners will be aware, under Chapter 2 of Part 1 of Schedule 1 to Mobile Homes Act 1983 (the Implied Terms), a park owner is permitted to carry out a review of the pitch fee every year either on the review date set out in the Written Statement or after the review date, as a late review.

Paragraph 20(A1) of the Implied Terms provides for a presumption that unless it would be unreasonable having regard to set factors within Paragraph 18 of the Implied Terms, the pitch fee shall increase by a percentage which is no more than any percentage increase in the retail prices index (calculated by reference to the latest index and the index published for the month which was 12 months prior to that) (RPI).

From 2 July 2023, this position will now change following the introduction of the Mobile Homes (Pitch Fees) Act 2023 (the Act). The Act will amend the wording of the Implied Terms to the extent that references to RPI will now be amended to the Consumer Price Index (CPI). Historically, CPI has been less than RPI. This will mean moving forward any pitch fee review documents served after the 2 July 2023 must be calculated on the basis of the relevant percentage increase in CPI and not RPI. Failure to do so will render a pitch fee review invalid.

The Act also prohibits a pitch fee review that appears to have been calculated by a park owner to attempt to recover any difference between the RPI and CPI through other means. Any portion of the pitch fee increase determined by the First Tier Tribunal (Property Chamber) to have been calculated on this basis will be disregarded.

It is important that all park owners take the Act into consideration when conducting any pitch fee reviews moving forward to ensure they compliant with the Act’s new provisions.