This article answers common questions about pitch fees on residential park home sites in England and Wales. The applicable written statement, the site’s circumstances and the review paperwork should always be checked carefully.
What is a pitch fee?
A pitch fee (often called “ground rent”) is the amount a park home owner pays to the site owner for the right to station their home on its pitch, to use the common areas of the protected site, and for their maintenance. It is not normally a charge for gas, electricity, water, sewerage or other services, unless the written agreement expressly says those sums are included.
How is the pitch fee set?
The starting pitch fee is usually agreed when the park home agreement begins and should be recorded in the written statement. There is no general statutory cap on that initial agreed figure. The statutory rules principally control later reviews of the fee, rather than the original bargain.
Pitch fees can therefore differ between sites and, sometimes, between pitches on the same site!
Comparisons with neighbouring pitches are not, by themselves, a reliable basis for challenging a review.
Are utility charges included within pitch fees?
The pitch fee can include utility charges if (and only if) explicitly stated in the written statement.
If you are unclear after having carefully reviewed the terms of the written statement, it is advisable to seek specialist legal advice. This would involve reviewing and interpreting the written statement.
How must a pitch-fee review be carried out?
For a review taking effect on the contractual review date, the site owner must:
(a) serve written notice of the proposed new pitch fee on the individual occupier at least 28 clear days before the review date; and,
(b) where an increase is proposed, provide the prescribed pitch-fee review form required by the legislation.
How often can a pitch fee review take place?
The pitch fee must be reviewed annually, on the review date stated in the written agreement.
A review is not an automatic entitlement to an increase. If the resident does not agree, the fee changes only if the First-tier Tribunal (Property Chamber) considers a change reasonable and determines the new amount.
What if the resident disagrees with the proposed increase?
The resident should continue to pay the current pitch fee. If agreement cannot be reached, either the site owner or the resident may apply to the First-tier Tribunal (Property Chamber) for a determination of the new fee. Be aware of the timeframes for making an application.
Until the new fee is agreed or determined by the Tribunal, the resident is not required to pay the proposed higher fee. If the Tribunal later determines a higher figure, the new fee is ordinarily payable from the review date, but the resident is not treated as being in arrears until 28 days after the agreement or Tribunal order.
Is an inflation-linked increase automatic?
No. For English and Welsh residential sites, there is a statutory presumption that the fee will rise or fall by no more than the relevant change in the Consumer Prices Index (CPI).
However, the presumption applies only unless it would be unreasonable having regard to the statutory factors; it is not an automatic right to an increase.
When should specialist advice be sought?
Advice is particularly worthwhile where there is a dispute about the validity or timing of the notice, the identity of the site owner, whether utilities or service charges have been treated correctly, deterioration in the site or its services, improvements relied on by the site owner, or a proposed application to the First-tier Tribunal (Property Chamber).