Park homes sales tax ‘daylight robbery’ says MP as campaign to end it reaches Parliament
- Credit: Archant
A bid to stop park home site owners charging 10 per cent commission on re-sales was debated in Parliament – with NE Cambs MP Steve Barclay joining the clamour for a review.
The main debate was led by Mid Dorset MP Annette Brooke who said that although a 2013 law had helped many owners “there is still work to do to protect and ensure fairness towards a fairly vulnerable population”.
She said over 30,000 residents of nearly 1,000 parks had signed a petition opposing the 10 per cent commission on the sale price of their homes that is payable to the site owner.
Mr Barclay believes the sales tax should be scrapped; describing it is as “daylight robbery”.
The MP said the main problem is the “bundling of costs”, which means the sale price and the 10 per cent commission do not reflect the services that are being offered.
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He backed calls for a review of the charges so there is greater transparency on what services are being offered, what the price of those services is and what competition might be introduced in respect of those services.
“So that there is not just an overall 10 per cent figure that may or may not have a bearing on what the park owner is delivering,” said Mr Barclay.
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He also pointed out that park home residents have no idea when they buy their homes how much they are going to have to pay when they sell their property as it depends on the sale price at the time.
The debate heard the 10 per cent commission is a flat fee even though it was originally intended as a maximum commission.
He said it did not matter how long somebody has lived there, and what improvements people have made to their homes. This includes improvements they have paid for at no expense to the site owner.
Mr Barclay said: “We need to know exactly what will happen if it is abolished: will site charges increase hugely and how much of the money paid is reinvested in improvements to the site.”
Brandon Lewis, Minister of State for local government, told the Commons he appreciated the importance of the debate since in his own constituency of Great Yarmouth there were a large number of park home owners.