cpi
📖 What is cpi? Meaning and definition
The Consumer Prices Index (CPI) is a key economic indicator that reflects changes in the cost of living. In the context of UK tenancy law, specifically for park homes, CPI is often used as a basis for calculating proposed increases in pitch fees. When a site owner proposes an increase, it frequently reflects the change in the CPI over the preceding 12 months.
For park home occupiers, understanding CPI is crucial because it forms the statutory presumption for pitch fee changes. This means that unless an occupier can provide evidence to rebut this presumption, the pitch fee is likely to increase in line with CPI. The First-tier Tribunal often considers the CPI increase when setting new pitch fees, especially if the occupier has not agreed to the proposed increase.
Occupiers can challenge a proposed increase based on CPI by presenting evidence of other factors, such as a lack of maintenance, unpleasant smells, flooding, or issues with water pressure, which might make it unreasonable to increase the pitch fee. However, the burden is on the occupier to provide such evidence within the parameters set out in relevant legislation.
📋 Requirements
- A proposed pitch fee increase reflects the increase in the Consumer Prices Index (CPI) in the 12 months preceding the notice of increase.
- The site owner applies to the First-tier Tribunal if the occupier does not agree to the proposed CPI-based increase.
- The occupier needs to provide evidence to rebut the statutory presumption that a pitch fee will change in line with CPI.
- Evidence provided by the occupier must be within the parameters of paragraph 18 of Chapter 2 to Schedule 1 of the relevant Act.
📝 Procedure
- The site owner proposes a pitch fee increase, often reflecting the CPI increase.
- If the occupier refuses to agree to the proposed increase, they avoid becoming liable to pay it immediately.
- The site owner applies to the First-tier Tribunal to obtain an increase in pitch fee.
- The Tribunal asks parties to explain their reasons for refusing or proposing the increase.
- The occupier presents evidence and submissions to oppose the increase, such as issues with site maintenance.
- The Tribunal determines the new pitch fee based on the evidence presented, considering the CPI increase and any rebutting factors.
💡 Examples
- A park home site owner proposes to increase the monthly pitch fee by an amount directly corresponding to the 3% rise in CPI over the last year.
- An occupier refuses to accept a CPI-based pitch fee increase, arguing that persistent drainage issues and poor water pressure on the park make the increase unreasonable.
- The First-tier Tribunal reviews a case where an occupier has not agreed to a pitch fee increase for their park home, and the site owner's proposal is based on the CPI.
- The Tribunal directs the site owner to provide CPI data used in their calculations, and the park home owner to state why they oppose the increase, citing specific issues like lack of maintenance.
❓ Frequently asked questions
What does CPI stand for in the context of my park home pitch fee?
CPI stands for Consumer Prices Index. It is a measure of inflation that is often used as the basis for calculating proposed increases in pitch fees for park homes in the UK.
Why is CPI relevant to my pitch fee?
CPI is relevant because there is a statutory presumption that your pitch fee will change in line with the change in the CPI index. This means that site owners often propose increases based on the CPI from the preceding 12 months.
Can I refuse a pitch fee increase based on CPI?
Yes, you can refuse to agree to a proposed pitch fee increase. By doing so, you avoid becoming liable to pay the increase immediately, and the site owner would then need to apply to the First-tier Tribunal to obtain the increase.
What evidence can I use to challenge a CPI-based pitch fee increase?
You can challenge an increase by providing evidence that it would be unreasonable, such as issues with maintenance, unpleasant smells, flooding, or problems with water pressure on the park. This evidence must fall within specific legal parameters.
What happens if I don't provide evidence to challenge the CPI increase?
If you do not provide sufficient evidence to rebut the statutory presumption, the First-tier Tribunal may determine that the new pitch fee should increase in line with the CPI.
Is CPI the only factor considered for pitch fee increases?
While CPI is a primary factor and often the statutory presumption, the Tribunal can consider other weighty factors if you provide evidence that it would be unreasonable to increase the pitch fee, such as a lack of maintenance or other site issues.