retail prices index (rpi)
📖 What is retail prices index (rpi)? Meaning and definition
The Retail Prices Index (RPI) is a widely recognised measure of inflation in the United Kingdom. In the context of UK tenancy law, specifically for mobile homes, RPI plays a significant role in determining changes to pitch fees. There is a legal presumption that pitch fees will increase or decrease by a percentage no more than the change in the RPI since the last review date. This presumption applies unless it would be considered unreasonable, taking into account other factors.
When considering a pitch fee review, the RPI calculation typically refers to the latest index published and the index published 12 months prior to that. The specific 'latest index' depends on when the owner serves a notice regarding the fee change. This mechanism aims to provide a standardised and objective basis for adjusting fees, reflecting general economic changes.
However, the RPI is not the sole factor. Even with the statutory presumption, tribunals must also consider other elements, such as any deterioration in the condition or amenity of the site, any reduction in services provided by the owner, or any deterioration in the quality of those services. These factors can override or modify the RPI-based adjustment if it would be unreasonable to apply the RPI change alone.
For self-represented litigants, understanding how RPI is calculated and the other factors that can influence pitch fee reviews is crucial. Owners are required to specify any RPI percentage change in their notices and explain how it contributes to the proposed new pitch fee, alongside other attributable matters.
📋 Requirements
- The pitch fee increase or decrease must be calculated by reference to the latest RPI and the RPI from 12 months prior.
- The RPI-based adjustment is a presumption, meaning it can be overridden if deemed unreasonable.
- Other factors, such as site deterioration or reduction in services, must be considered when determining if an RPI-based adjustment is unreasonable.
- Owners must serve a notice specifying the RPI percentage change and explaining its effect on the proposed new pitch fee.
📝 Procedure
- The owner serves a notice proposing a new pitch fee.
- The notice specifies any percentage increase or decrease in the RPI, calculated according to specific dates.
- The notice explains the effect of the RPI change and other matters attributable to the new pitch fee.
- The First-tier Tribunal may review the proposed fee, considering the RPI presumption and other factors like site condition or services.
💡 Examples
- A mobile home owner proposes to increase the pitch fee by 3%, citing a 3% increase in the RPI over the last 12 months, as per the statutory presumption.
- A tribunal decides that a pitch fee increase based solely on RPI is unreasonable because the site's amenities have significantly deteriorated since the last review.
- An owner's notice for a pitch fee review details a 2.5% RPI increase and also mentions a new service provided, both contributing to the proposed new fee.
- The 'latest index' for calculating the RPI change is determined by the date the owner serves the notice for the pitch fee review.
📚 Legal basis
- Mobile Homes Act 1983
❓ Frequently asked questions
What is the Retail Prices Index (RPI) in the context of tenancy?
The RPI is a measure of inflation used to calculate how much pitch fees for mobile homes can increase or decrease. There's a legal presumption that fees will change by no more than the RPI percentage.
Is a pitch fee increase always tied directly to RPI?
Not always. While there's a presumption that fees will change by no more than the RPI percentage, this can be deemed unreasonable if other factors, like site deterioration or reduced services, are significant.
How is the RPI percentage change calculated for pitch fees?
It's typically calculated by comparing the latest RPI published before the owner's notice with the RPI published 12 months prior to that date.
What if I disagree with a pitch fee increase based on RPI?
You can challenge the increase, arguing that applying the RPI change would be unreasonable due to factors such as a decline in site condition or services. The First-tier Tribunal would then consider all relevant circumstances.
Where can I find the specific rules about RPI and pitch fees?
The rules are primarily found in paragraphs 18 and 20 of Chapter 2, Schedule 1 to the Mobile Homes Act 1983. These sections outline how RPI is to be considered alongside other factors during pitch fee reviews.