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.
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