Park homes: reasons for commission payments
This call for evidence seeks to understand the reasons why commission is paid when a park home is sold.
The requirement for park home residents to pay a commission of up to 10% of the sale price of their home has generated considerable debate over many years.
A report in 2022 concluded that there was no shared understanding of what the payment is charged for. The report made 4 recommendations, including that further work is carried out to establish the rationale for the payment.
In 2023, we sought feedback from stakeholder representative bodies on the report’s recommendations. The feedback reinforced our views that there was no clarity or consensus within the sector on the rationale for the commission.
In this call for evidence, we are seeking to establish the rationale for the payment of commission and understand how the commission rate is determined and calculated as a percentage of the sale price of a home.
We are also seeking evidence of how the commission payment operates within the existing legislation and to gain a better understanding of how the sector’s current business model operates.