cpi increase
📖 What is cpi increase? Meaning and definition
A CPI increase is a method used to adjust certain fees, particularly pitch fees for mobile homes, to account for changes in the cost of living. This adjustment is based on the Consumer Prices Index (CPI), a widely recognised measure of inflation in the UK. When a site owner proposes a CPI increase, they are suggesting that the fee should rise by the same percentage as the CPI has increased over a specified period, often 12 months.
In practice, for mobile home residents, pitch fee increases are regulated by the Mobile Homes Act 1983. This means that while a site owner may propose an increase based on CPI, residents do not automatically have to agree to it. If residents dispute the proposed increase, the site owner must apply to a tribunal, such as the First-tier Tribunal (Property Chamber), for a determination.
The tribunal will then review the proposed increase. The starting point for the tribunal is a presumption that the site owner's proposal is reasonable, but they will consider all circumstances. The tribunal's role is to decide if it is reasonable to increase the pitch fee, and if so, by how much, taking into account factors like the CPI increase and any other relevant information presented by both parties.
It is important to note that pitch fees can generally be reviewed not more often than once a year. The specific review date might be set out in the written agreement between the site owner and the park home owner, and any notice proposing an increase must adhere to the correct procedures and dates.
📋 Requirements
- The proposed increase must be in line with the Consumer Prices Index (CPI).
- Notices proposing the increase must be served under the provisions of the Mobile Homes Act 1983.
- Pitch fees may be reviewed not more often than once a year.
- The increase must be either agreed between the site owner and park home owner, or determined as reasonable by a tribunal.
📝 Procedure
- A Pitch Fee Review Notice is served on the resident, proposing an increase in line with CPI.
- If the resident does not agree to the increase, they continue to pay the previous pitch fee.
- The site owner applies to the tribunal for a determination of the disputed pitch fee.
- The tribunal issues directions for the exchange of documents and sets a timetable.
- The tribunal determines the case based on the submitted papers, deciding if the increase is reasonable and by how much.
💡 Examples
- A mobile home site owner proposed to increase the pitch fee by 4%, stating this represented the CPI increase in the 12 months to January 2024.
- A resident received a Pitch Fee Review Notice proposing an adjustment to their pitch fee in line with the Consumer Prices Index, with an effective date of 1st July 2025.
- The tribunal determined a new monthly pitch fee of £178.81 for a park home, following a dispute where the resident had not agreed to the site owner's proposed CPI increase for 2025.
- A site owner served notices proposing a CPI increase for all pitch fees with effect from 1 October 2024, but these notices were served late according to the regulations.
📚 Legal basis
- Mobile Homes Act 1983
❓ Frequently asked questions
What is the Consumer Prices Index (CPI)?
The Consumer Prices Index (CPI) is a measure of inflation that tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used in legal contexts, such as tenancy agreements, to calculate adjustments to fees based on changes in the cost of living.
Can my landlord increase my rent using a CPI increase?
The case excerpts specifically refer to pitch fees for mobile homes under the Mobile Homes Act 1983. Whether a landlord can increase rent for other types of tenancies using a CPI increase depends on the terms of your specific tenancy agreement and relevant housing legislation.
Do I have to agree to a CPI increase proposed by my site owner?
No, you do not automatically have to agree. If you dispute the proposed increase, the site owner must apply to a tribunal for a determination on whether the increase is reasonable and by how much.
How often can a CPI increase be applied to my pitch fee?
Pitch fees, including those adjusted by CPI, may be reviewed not more often than once a year, as regulated by Schedule 1 to the Mobile Homes Act 1983.
What happens if the site owner serves the CPI increase notice late?
If notices proposing a CPI increase are served late, this can be a point of dispute. The tribunal will consider all aspects of the application, including adherence to prescribed procedures and dates, when making its determination.
What should I do if I disagree with a proposed CPI increase?
If you disagree with a proposed CPI increase, you should not agree to it and continue paying your current fee. The site owner will then need to apply to the First-tier Tribunal (Property Chamber) for a determination. You should prepare your case and submit any relevant documents to the tribunal as directed.