Department for Levelling Up, Housing & Communities
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Park Home 'Commission Rate' moves towards greater transparency

Park Home 'Commission Rate' moves towards greater transparency

COMMUNITIES AND LOCAL GOVERNMENT News Release (059) issued by The Government News Network on 27 March 2007

Proposals to strengthen the transparency of the payment mechanisms on park home sites in England and Wales have been announced by the Government today.

The Communities and Local Government has also decided that the maximum rate of commission payable on the sale of a park home is to remain at 10 per cent. The proposals will affect at least 200,000 residents on more than 2,000 park home sites.

The decision follows last year's three month consultation in which several proposals for changes to the rate of commission payable on the sale of a park home were put forward. More than 1250 responses were received.

Housing Minister Baroness Andrews, said the proposals will ensure residents are aware of all charges payable at the earliest opportunity.

"The measures we are bringing forward in relation to improving transparency, along with recent legislative changes, will help ensure a strong future of the industry and protect a continuing source of affordable housing. The retention of the current rate is at present the best way forward for the industry as a whole."

The outcome of the consultation is included in a summary of responses published on the Department's website today.

Notes to Editors

1. The consultation document and the summary of responses can be found at: http://www.communities.gov.uk/index.asp?id=1151800

2. The commission payment on the resale of a park home has been with us for as long as people have used caravans as a permanent residence. In the 1960s, the going rate was about 20 per cent. With the introduction of the Mobiles Homes Act 1975, the payment was put on the statute book and limited to15 per cent. This was then reduced again in the Mobile Homes Act 1983 to 10 per cent.

Public Enquiries: 020 7944 4400;
News Releases: http://www.communities.gov.uk

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