I beg to move that the House consider the draft Mobile Homes (Requirement for Manager of Site to be Fit and Proper Person) (England) (Amendment) Regulations 2021, which were laid before the House on 22 March 2021.
My Lords, the purpose of these regulations is to amend the Mobile Homes (Requirement for Manager of Site to be Fit and Proper Person) (England) Regulations 2020 to correct an error in that instrument. Specifically, these new regulations change the reference in Regulation 3(5)(a) to the Local Government Finance Act. The year of this Act was incorrectly given as 1992, and this is now amended to show the correct year, which is 1988.
On 23 September 2020, we made principal regulations to prohibit the use of land in England as a relevant protected caravan site—a site on which year-round residential occupation is allowed—unless the relevant local authority is satisfied that the owner or manager of the site is a fit and proper person to manage it. This will be guided by a fit and proper person test.
I will set out the reasons for the reference to the Local Government Finance Act 1988 in the principal regulations made on 23 September. The fit and proper person requirement does not include sites that are operated by local authorities; operated for holiday purposes only; exempt from requiring a site licence; or being occupied by members of the same family and not run as a commercial residential site.
To determine if a site is a commercial residential site, a local authority will take into consideration both the amount that any person is required to pay the site owner in respect of the right to station a caravan, to reside, or use the common areas of the site, and whether that amount exceeds a fair contribution towards the relevant costs.
Part of the definition of relevant costs in the principal regulations is:
“any amount which the occupier”—
who for the purpose of this debate we will refer to as the site owner—
“is liable to pay as regards the site by way of a non-domestic rate under Part 3 of the Local Government Finance Act 1992”.
The reference to the Local Government Finance Act 1992 is an error, as it is Part 3 of the Local Government Act 1988 that deals with non-domestic rates. This amendment is therefore necessary to ensure that local authorities are able properly to apply the intended exemption from the fit and proper person test requirements for non-commercial, family occupied sites when the principal regulations come into force on 1 July and 1 October this year. I emphasise that these regulations will not amend or affect any other aspects of the principal regulations, which were laid before noble Lords last year.
To conclude, the fit and proper person test requirements form part of the comprehensive programme of work that we announced in 2018 to drive up standards of management and conduct across the park homes sector and ensure that residents’ rights are respected. Good site owners who already provide a professional service will not be concerned about being unable to meet the required standards. The minority who continue to abuse and exploit residents will have to improve or make way for more professional people to manage the site. The fit and proper person test will also be a useful addition to local authorities’ existing powers to help them tackle the worst offenders in the sector. I commend these regulations to the House.
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