ALARMING RISE IN PITCH FEES EXPECTED NEXT YEAR
Park Home residents can expect big pitch fee rises next year. The UK rate of inflation has been rising rapidly from a low of just over 1% in January 2021 to an unprecedented high, compared to recent years. The Office for National Statistics November report on the October levels of inflation, show the Consumer Prices Index (CPI) at 4.2%. The Retail Prices Index (RPI) stood at 6%.
Unfortunately for park home residents, annual pitch fee increases are based on the RPI and if increases continue, we could see a 7% rise in fees for 2022. For a monthly pitch fee of £150 this would represent an increase of £10.50 per month.
Retirement pension increases are based on CPI in September each year and after the cancellation of the 'triple lock' by the Westminster Government, pensions are expected to rise by only 3.1% in April 2022. Since pitch fee increases are based on the RPI, a 7% rise wipes out the pension increase twice over.
SCOPHRA and other residents organisations in the UK are pushing their Governments to ally pitch fee increases to be based on CPI not RPI. SCOPHRA particularly, is campaigning for this change in Scotland as soon as possible.
Home owners have no right of objection to a pitch fee increase properly based on RPI, unless the 'Amenity of the site has been reduced from the last review date.'