pitch fee increase
📖 What is pitch fee increase? Meaning and definition
A pitch fee increase typically occurs when a site owner proposes to adjust the amount payable by a mobile home resident. This adjustment is often sought annually, with a specific 'Review Date' set each year, such as 1 April. The site owner usually serves a 'Pitch Fee Review Notice' to the resident, outlining the proposed new fee and the reasons for the increase.
Under the Mobile Homes Act 1983 (as amended), there is a presumption that the pitch fee will increase or decrease by a percentage no more than the percentage change in the Retail Price Index (RPI) since the last review date. This means that RPI is a common basis for calculating the proposed increase, aiming to reflect inflation.
However, the First-tier Tribunal (Residential Property) can review these increases. When determining the new pitch fee, the Tribunal must consider specific factors beyond just RPI. These include any money spent by the site owner on improvements to the site since the last review, as well as any deterioration in the condition or decrease in the amenity of the site or adjoining land. Residents can challenge increases they believe are unreasonable, leading to a Tribunal determination.
📋 Requirements
- A Pitch Fee Review Notice must be served by the site owner.
- The proposed increase is often justified by an adjustment in line with the Retail Price Index (RPI).
- The increase must be reviewed against factors such as site improvements or deterioration since the last review date.
📝 Procedure
- The site owner serves a Pitch Fee Review Notice to the resident, proposing a new pitch fee.
- The site owner submits an application to the Tribunal for a determination of the pitch fee if an agreement is not reached.
- The Tribunal considers the proposed increase, usually in relation to the RPI, and other factors like site improvements or deterioration.
- The Tribunal issues a decision on the new pitch fee payable by the resident.
💡 Examples
- A site owner proposed to increase the monthly pitch fee from £102.20, stating the adjustment was solely to align with the Retail Price Index since the last review.
- A resident challenged a pitch fee increase, arguing that while the RPI had risen, the site owner had failed to make promised improvements to the communal areas.
- The Tribunal upheld a pitch fee increase after the site owner demonstrated significant expenditure on upgrading the site's infrastructure since the previous review date.
- A Pitch Fee Review Notice was dated 16 April 2022, proposing an increase to take effect from 2 June 2022, with the annual review date being 1 April.
📚 Legal basis
- Mobile Homes Act 1983 (as amended)
❓ Frequently asked questions
What is a pitch fee?
A pitch fee is the regular payment, usually monthly, that a mobile home owner makes to the site owner for the right to keep their home on a specific plot of land within a mobile home park.
How often can a pitch fee be increased?
Pitch fees are typically reviewed and potentially increased annually, with a specific 'Review Date' set each year, as indicated in the Pitch Fee Review Notice.
What is RPI and how does it relate to pitch fee increases?
RPI stands for Retail Price Index, which is a measure of inflation. Under the Mobile Homes Act 1983, there is a presumption that a pitch fee will increase or decrease by no more than the percentage change in the RPI since the last review date.
Can I challenge a pitch fee increase?
Yes, if you believe a proposed pitch fee increase is unreasonable, you can challenge it. The First-tier Tribunal (Residential Property) can determine the amount of the new pitch fee, taking into account various factors.
What factors does the Tribunal consider when reviewing a pitch fee increase?
The Tribunal considers the percentage change in RPI, any sums spent by the site owner on improvements to the site since the last review, and any deterioration in the condition or decrease in the amenity of the site or adjoining land.
What is a Pitch Fee Review Notice?
A Pitch Fee Review Notice is a formal document served by the site owner to the resident, informing them of a proposed increase to the pitch fee and the reasons behind it.