SITE LICENCE FEE IN THE PITCH FEE

The Mobile Homes Act 2013 introduced a number of changes one of which was to give more powers to the local authorities regarding the site licence and the licence conditions. One change was that it allowed the local authority to charge an annual fee for the site licence. Under the implied terms this charge can be passed onto the residents at the following pitch fee review.

The relevant implied term is 18(1)(ba) which states:
18-(1) When determining the amount of the new pitch fee particular regard shall be had to-
(ba) any direct effect on the costs payable by the owner in relation to the maintenance or management of the site of an enactment which has come into force since the last review date:

This means that at the next pitch fee review following the imposition of the annual site licence fee by the local authority on the site owner the amount of the fee can be divided by the number of occupied homes and added to the pitch fee. It then becomes an integral part of the pitch fee which is usually increased by the RPI each year. Because this legislation came into force on 1 April 2014 the fee contribution cannot be added to the pitch fee at a review after 1 April 2015.