Ref: LCO-087

Proposed Park Homes Legislative Competence Order

Kirsty Williams

Pre-ballot Information: Outline Proposed Legislative Competence Order

Outline of proposed Order

Amend the relevant field of Schedule 5 to the Government of Wales Act 2006 to make provisions relating to regulating the sale of residential caravans, mobile homes and park homes and to make provisions relating to establishing alternative methods of arbitration.

Policy Objectives of the Proposed Order

The purpose of this Proposed Order is to confer on the National Assembly the power to regulate more fairly the process by which residential caravans and mobile homes are sold in Wales. Primarily we will be seeking to ensure that negotiations between site owners and park home owners are independently monitored and that there will be a system of arbitration for owners who have cause for concern about the process.

Background

Park Home owners, like any home owners, have a right to sell their homes. Unfortunately, a minority of unscrupulous park operators are able to use loopholes in current legislation to deter potential buyers from buying previously-owned homes on the site. At the "the approval of the buyer" stage, park operators meet with prospective purchasers and, allegedly, deter prospective purchasers with negative comments intended to deter the sale. Subsequently, many park home owners are left only able to sell to the site owners for an amount which is usually a figure considerably lower than the market value.

Such incidents occur in a minority of transactions, but can cause considerable distress, as well as financial loss to park home owners due to a loophole in the legislation designed to protect them. Likewise, there are a number of similar incidents where next of kin have been denied access to a fair market due to the actions of some site owners. Finally this also damages the reputation of the whole industry (which is significant in many parts of Wales) and tarnishes the reputation of the majority of good site owners,

Our LCO seeks to draw down to Wales the powers to develop legislation to ensure that meetings between potential buyers and site owners are independently monitored and to establish a system of arbitration for park home owners who feel that they have lost money as a result of this problem.