pitch fee review
📖 What is pitch fee review? Meaning and definition
A pitch fee review is a formal process, often overseen by a First-tier Tribunal, to determine the appropriate level of the pitch fee for mobile home residents. The review typically starts with a presumption that the fee will increase or decrease in line with the Consumer Prices Index (CPI) or Retail Price Index (RPI) over the preceding 12 months. However, this presumption can be challenged or set aside if there are other factors to consider.
When conducting a review, particular attention is given to any improvements made by the site owner since the last review that benefit the mobile home occupiers. Conversely, any deterioration in the condition or decrease in the amenity of the site or adjoining land can also be taken into account, especially if these issues haven't been considered in previous reviews. These factors allow for adjustments to the pitch fee that go beyond a simple inflation-linked change.
Residents may not agree with a proposed increase, leading to an application to the Tribunal for a determination of the new fee. If residents pay the increased pitch fee, even under protest, this can be interpreted as an agreement to the new fee under the relevant legal provisions. The Tribunal's decision will then set the new pitch fee, and may also include orders for reimbursement of application fees.
📋 Requirements
- A review notice must be served by the site owner.
- The review typically considers the change in the Consumer Prices Index (CPI) or Retail Price Index (RPI) in the 12 months prior to the notice.
- The review must consider any improvements made by the owner for the benefit of occupiers since the last review.
- The review must consider any deterioration in the condition or decrease in amenity of the site since 2014 (if not previously considered).
📝 Procedure
- The site owner serves a Pitch Fee Review Notice proposing a new fee.
- Residents can choose to agree to the proposed increase or dispute it.
- If residents do not agree, they may make an application to the First-tier Tribunal.
- The Tribunal determines the new level of the pitch fee, taking into account relevant factors.
- If residents pay the increased fee and arrears, this can be deemed as agreement to the new fee.
💡 Examples
- A site owner proposed to increase the pitch fee from £128.92 to £131.63 per month, reflecting a 2.1% RPI increase, but residents disputed it due to concerns about road resurfacing and lighting.
- The First-tier Tribunal reviewed a pitch fee increase for mobile home residents, considering whether the increase should be solely based on the Consumer Prices Index or if other factors like site improvements or deterioration were relevant.
- Residents who paid the increased pitch fee and associated arrears were found by the Tribunal to have agreed to the new fee, even if they had initially expressed disagreement.
- A Tribunal hearing was held to decide on a Pitch Fee Review for 2021, with multiple respondents listed as mobile home residents.
📚 Legal basis
- Mobile Homes Act 1983
❓ Frequently asked questions
What is the starting point for a pitch fee increase?
The starting point is usually a presumption that the pitch fee will increase or decrease by a percentage equivalent to the change in the Consumer Prices Index (CPI) or Retail Price Index (RPI) in the 12 months before the review notice.
Can a pitch fee increase be more or less than the CPI/RPI change?
Yes, the presumption can be set aside. The Tribunal will consider other factors, such as improvements made by the owner for residents' benefit or any deterioration in the site's condition or amenities, which might justify a different adjustment.
What happens if I don't agree with the proposed pitch fee increase?
If you do not agree with the proposed increase, you can make an application to the First-tier Tribunal (Property Chamber) for a determination of the new pitch fee. Simply withholding payment without Tribunal involvement may have consequences.
Does paying the increased pitch fee mean I agree to it?
Yes, paying the increased pitch fee and any arrears can be interpreted by the Tribunal as an agreement to the new fee under the provisions of the Mobile Homes Act 1983.
What factors does the Tribunal consider during a pitch fee review?
The Tribunal considers improvements made by the site owner for the benefit of occupiers since the last review, and any deterioration in the condition or decrease in the amenity of the site or adjoining land since 2014 (if not previously considered), in addition to the CPI/RPI.
Who pays the application fee for a Tribunal review?
The Tribunal can order the respondents (often the residents) to reimburse the applicants (often the site owners) for the application fee within a specified timeframe, as seen in some decisions.