retail prices index
📖 What is retail prices index? Meaning and definition
The Retail Prices Index (RPI) is a key economic indicator in the UK, reflecting changes in the cost of living. In the context of UK tenancy law, specifically for mobile homes, the RPI plays a crucial role in determining adjustments to pitch fees. There is a legal presumption that pitch fees will increase or decrease by a percentage no more than the percentage change in the RPI, unless it is deemed unreasonable.
This calculation typically involves comparing the latest RPI figure with the RPI figure from 12 months prior. For instance, if a pitch fee review is due, the RPI published for the month before the review notice is served, or the month before the notice was due, is used as 'the latest index'. This percentage change is then applied to the existing pitch fee to propose a new amount.
The use of RPI in pitch fee reviews is outlined in regulations, which also specify that the notice proposing a new fee must detail the RPI percentage change and explain its effect. While the RPI forms the basis for the statutory presumption of fee changes, tribunals can consider other factors when determining the final amount, especially if applying the RPI change alone would be unreasonable. However, the RPI calculation itself is often not disputed by parties, as seen in cases where the percentage increase and the resulting new fee are accepted.
📋 Requirements
- The pitch fee increase or decrease must be calculated by reference to the RPI.
- The calculation uses the latest RPI and the RPI published 12 months before that.
- The proposed change must not exceed the RPI percentage change, unless deemed unreasonable.
- The notice proposing a new pitch fee must specify the RPI percentage change and explain its effect.
📝 Procedure
- An owner serves a notice proposing a new pitch fee.
- The notice includes the percentage increase or decrease in the RPI, calculated over 12 months.
- The calculation refers to the latest RPI published before the notice was served or due.
- The proposed new pitch fee is based on this RPI percentage change, unless deemed unreasonable.
💡 Examples
- A mobile home owner proposes a new pitch fee of £202.07, calculated by applying a 7.8% RPI increase from January 2022 to the previous fee.
- A tribunal considers whether a proposed pitch fee increase, based on the RPI, is reasonable, taking into account other factors related to the pitch.
- A notice for a pitch fee review specifies a percentage increase in the RPI, calculated according to specific regulations, and explains how this affects the new fee.
- The latest RPI figure published before a review notice was served is used to determine the percentage change for the pitch fee.
❓ Frequently asked questions
What is RPI in the context of my mobile home pitch fee?
RPI, or Retail Prices Index, is a measure of inflation used to calculate how much your mobile home pitch fee can increase or decrease. There's a legal presumption that the fee will change by no more than the RPI percentage.
How is the RPI increase for my pitch fee calculated?
The increase is typically calculated by comparing the RPI published for the latest month before your review notice was served with the RPI from 12 months prior to that. This gives a percentage change that is applied to your current pitch fee.
Can my pitch fee increase by more than the RPI?
Legally, there's a presumption that the pitch fee will increase by no more than the RPI percentage change. However, this can be overridden if a tribunal finds it would be unreasonable, considering other factors.
What if I dispute the RPI calculation on my pitch fee notice?
The RPI calculation itself is often not disputed in tribunal cases, but if you believe there's an error, you should raise it. The notice must specify the RPI change and explain its effect.
Does RPI apply to all types of tenancy agreements?
Based on the provided cases, RPI is specifically mentioned in relation to pitch fees for mobile homes under relevant regulations. Its application to other tenancy types would depend on the specific terms of those agreements and relevant legislation.
What factors might make an RPI-based increase unreasonable?
While the RPI provides a baseline, tribunals can consider 'particular regard' to other factors when determining the new pitch fee. The case excerpts do not detail what these factors are, but they are set out in paragraph 18 of the relevant regulations.