First-tier Tribunal Increases Pitch Fee Based on CPI

OUTCOME: Allowed

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Case Reference

: CAM/22UN/PHI/2024/0021

Park Home : 9 [ADDRESS], [POSTCODE]

Applicant : [redacted]

Respondent: [redacted] : [NAME] under the Mobile Homes Act 1983 to determine pitch fee

Tribunal

: Judge [NAME] of Inspection : 20 March 2025

Date of Decision : 24 March 2025

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DECISION

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© CROWN COPYRIGHT 2025

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 Decision of the Tribunal

The Tribunal considers it reasonable for the pitch fee for 9 [ADDRESS], [POSTCODE] to be changed and orders that the new annual pitch fee payable by the Respondent from 1 February 2024 is £2,648.47 in place of £2,532.00.

Background

1. The Applicant is the [NAME] of the park where 9 [ADDRESS], [POSTCODE] (the Park Home) is situated. The Respondent is the Park Home owner.

2. By letter dated 28 November 2023, the Applicant served on the Respondent a Pitch Fee Review Notice with the prescribed form, detailing the proposed new pitch fee and its calculation, and stating that the new rate would be effective from 1 February 2024.

3. The Applicant had calculated the adjustment in line with the Consumer Prices Index (CPI) from October 2023, that being 4.6%. No recoverable costs or relevant deductions had been applied.

4. The Respondent did not reply to the Applicant to agree the increase. The Applicant therefore applied to the Tribunal to seek a determination of the pitch fee by [NAME] dated 26 April 2024. The [NAME] was made under paragraph 16 of the terms implied into the relevant pitch agreement by Chapter 2 of Part 1 of Schedule 1 to the Mobile Homes Act 1983 (the Act).

5. On 6 January 2025, the Tribunal gave case management directions in relation to this [NAME]. The Applicant [NAME] was required to send a statement of the Applicant’s case, including the CPI data used in the calculation of the proposed new pitch fee. The Respondent was directed to complete and return a reply form to the Applicant and the

3 Tribunal. Additionally, the Respondent was directed to complete a statement setting out why the Respondent opposed the pitch fee increase. Further, if the Respondent wished to submit that it was unreasonable to increase the fee because, for example, the condition of the [NAME] had deteriorated, or there had been a decrease in the amenities or a reduction of services that the owner supplied to the [NAME], pitch or park home (or any of the matters set out in paragraph 18(1) of Chapter 2 of Part 1 of Schedule 1 to the Act), the Respondent was to set this out.

6. The Applicant was permitted to then make a brief reply to the Respondent’s submissions if they wished to.

7. The Tribunal determined that the [NAME] could be decided without a hearing based on the documents the parties were directed to provide to the Tribunal. The parties were given until 10 February 2025 to make a request for a hearing.

8. Neither party requested a hearing and so the Tribunal determined the [NAME] based on the papers submitted and an inspection of the [NAME].

Documents before the Tribunal

9. The Applicant provided the Tribunal with a bundle consisting of 56 pages, which included a witness statement of [NAME], who was employed by [RESPONDENT].

10. The Respondent did not complete the reply form or provide any documentation to the Tribunal or the Applicant.

The Inspection

11. The Tribunal inspected the [NAME] on the morning of 20 March 2025. The Applicant did not join the inspection.

4 12. The Tribunal knocked at the Park Home but did not receive an answer. A phone call was made to the [NAME] manager who told the Tribunal that they did not believe that anyone lived at the Park Home.

13. The Tribunal was therefore unable to gain access to the Park Home.

14. In terms of the [NAME], the Tribunal noted that the communal grass areas were tidy and greenery was cut back.

The Law

15. The relevant law is set out in the Mobile Homes Act 1983 (as amended) (“the Act”).

Section 1(1) of the Act provides as follows:

(1) This Act applies to any agreement under which a person (“the [NAME]”) is entitled – (a) To station a mobile home on land forming part of a protected [NAME]; and (b) To occupy the mobile home as his only or main residence.

The Tribunal derives its jurisdiction to determine disputes in these matters by virtue of Section 4(1) of the Act which states as follows: (1) In relation to a protected [NAME] a tribunal has jurisdiction – (a) To determine any question arising under this Act or any agreement to which it applies; and

5 (b) To entertain any proceedings brought under this Act or any such agreement,

Subject to subsection (2) to (6)

Under the Act, terms are implied into all agreements to which the Act applies. Those implied terms are set out in Chapter 2 of Part 1 of Schedule 1 of the Act.

The relevant terms for the purposes of a pitch fee review are set out at paragraphs 16-20 of that part of the Schedule. In summary, a review of a pitch fee is governed by three statutory principles:

i. The pitch fee can only be changed either with the agreement of the [NAME] or by determination by the Tribunal;

ii. The pitch fee shall be reviewed annually as at the review date;

iii. A presumption that the fee will increase or decrease in line with the variation in CPI.

2. Paragraph 16 states that a pitch fee can only be changed in accordance with paragraph 17, either –

(a) With the agreement of the [NAME], or (b) If the appropriate judicial body, on the [NAME] of the

6 owner or the [NAME], considers it reasonable for the pitch fee to be changed and makes an order determining the amount of the new pitch fee.”

3. Paragraph 17(4)(a) states that where the [NAME] does not agree to the proposed new pitch fee “the owner [or . . . the [NAME]] may apply to the [appropriate judicial body] for an order under paragraph 16(b) determining the amount of the new pitch fee.”

4. Paragraph 17(5) provides that “An [NAME] under sub-paragraph (4)(a) may be made at any time after the end of the period of 28 days beginning with the review date [but . . . ] no later than three months after the review date].

5. Paragraph 18 requires the Tribunal, in determining the new pitch fee, to have regard to particular factors:

i. Any sums expended by the [NAME] since the last review date on improvements;

ii. Any deterioration in the condition and any decrease in the amenity of the [NAME];

iii. Any reduction in the services provided by the [NAME] and any deterioration in the quality of those services;

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iv. Any legislative changes affecting costs.

Applicant’s Case

16. [APPELLANT], who was employed by [APPELLANT], provided a witness statement dated 27 January 2025 confirming that the Pitch Fee Review Form and Notice had been sent to the Respondent. The witness statement also confirmed that the Notice gave details of the proposed increase, which included only the increase in CPI over the 12 month period to October 2023, that increase being 4.6%.

Respondent’s Case

17. The Respondent did not provide the Tribunal with any written submissions.

Determination

18. The Tribunal finds that the Applicant adopted the correct CPI percentage of 4.6%, that being the October 2023 figure.

19. The Tribunal finds that the correct effective date for the pitch fee review is 1 February 2024.

20. The Tribunal is satisfied that the Applicant complied with the procedural requirements of paragraph 17 of Chapter 2, Part 1, Schedule 1 of the 1983 Act in this matter.

21. The Tribunal has considered whether the increase in pitch fee is reasonable, irrespective of whether the sum payable is in itself reasonable. The Tribunal has reminded itself that paragraph 18(1) of the Act requires the Tribunal to determine whether there has been any deterioration in the condition and any decrease in the amenity of the [NAME]

8 or any adjoining land which is occupied or controlled by the owner of the [NAME], and/or whether there has been any reduction in the services provided by the [NAME] and any deterioration in the quality of those services. Furthermore, whether any other weighty factors displace the presumption in favour of an inflationary increase in pitch fee calculated in accordance with CPI.

22. The Tribunal was not presented with any evidence of deterioration in the condition of the [NAME] or a decrease in amenity, or evidence of any reduction in services provided or deterioration in the quality of the services during the relevant period. Further, the Tribunal was not presented with any evidence as to whether any weighty factors displace the presumption in favour of an inflationary increase in the pitch fee.

The Effect of the above Determinations and the Pitch Fees

23. Having considered the evidence before it, the Tribunal is satisfied that it is reasonable that the pitch fee should be changed from 1 February 2024 onwards.

24. Turning next to the amount of increase in pitch fee, the Tribunal finds that the presumption in favour of an increase in line with the relevant CPI should not be displaced.

25. Accordingly, the Tribunal confirms the proposed annual pitch fee, payable with effect from 1 February 2024 as £2,648.47 in place of £2,532.00. Judge Bernadette MacQueen

Date: 24 March 2025

ANNEX – RIGHTS OF APPEAL

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1. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) then a written [NAME] for permission must be made to the First-Tier at the Regional Office which has been dealing with the case.

2. The [NAME] for permission to appeal must arrive at the Regional Office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

3. If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request to an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed despite not being within the time limit.

4. The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (ie give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking.

5. If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).