Why do I have to pay pitch fee, is it going to increase each year and what is RPI?
This is a common question we get asked by customers. You the park home owner own the park home but not the ground it’s sited on. When researching parks look closely at their site licence, the park should clearly display a copy as should the local authority.
Twenty eight days prior to you moving into your new park home you must enter into a written agreement (which is compulsory under the Mobile Homes Act 1983) between yourself and the park owners. This written agreement will include details on how much you will be required to pay, how frequently it has to be paid and what is and isn’t included. Utilities are not usually included unless specifically stated.
The Retail Price Index (RPI) is applied to a pitch fee. RPI is a measure of inflation published monthly by the Office for National Statistics. As a general rule the pitch fee will only be increased by the same percentage as the RPI since the last review date, unless residents and park owners have come to another arrangement, such as if additional facilities or improvements to the park are being made.
Pitch fees may only be reviewed annually on the review date agreed. Twenty eight days prior to this date a park owner must serve you with a written notice setting out all their proposals, together with a completed Pitch Fee Review Form. If these are not served in time, it will not be possible for the site owner to increase the pitch fees.
If you don’t agree with the proposal from the site owner we would suggest that you appeal directly to them outlining your objections. If the matter cannot be resolved it may be possible to appeal to the First-tier Tribunal (Property Chamber), no later than three months after the review date.
Our last, but probably most important piece of advice would be to seek professional help such as a solicitor to assist you with the transaction.