Wickland (Holdings) Limited v Amelia Esterhuyse
[2023] UKUT 147 (LC)
Wyldecrest Parks (Management) Limited v D Finch & Ors
10 July 2024
[2024] UKUT 197 (LC)
Upper Tribunal
A park owner appealed a decision to lower fees because the park's condition had worsened. The court agreed that fees could be lowered even if there was a prior agreement on higher fees, as long as it's fair considering the park's state. Future improvements could lead to higher fees again.
Key Facts
- •Appeal against a First-tier Tribunal (Property Chamber) decision reducing pitch fees at Berrnarbor Park.
- •Pitch fees reviewable annually from January 1st under the Mobile Homes Act 1983.
- •FTT reduced fees to 2021 levels due to significant deterioration in park condition after appellant's 2020 acquisition.
- •Appellant argued FTT couldn't reduce fees below the 2022 agreed level, that 'pristine' condition shouldn't be the point of reference for deterioration, and that reductions couldn't be reversed if the park improved.
- •Respondents argued deterioration was brought to the appellant's attention before the 2022 increase and that the promised improvements were not undertaken.
Legal Principles
Pitch fees can be increased or decreased by the FTT if considered reasonable under paragraph 16 of Schedule 1, Part 1, Chapter 2 of the Mobile Homes Act 1983.
Mobile Homes Act 1983, paragraph 16
Paragraph 18(1)(aa) and (ab) of the 1983 Act requires consideration of deterioration since the paragraph came into force, unless already considered in a previous determination. The FTT is not bound by prior agreements regarding the extent of deterioration.
Mobile Homes Act 1983, paragraph 18(1)(aa) and (ab)
The RPI (or CPI) increase is a presumption, not a mandate, and can be displaced by other significant factors, such as deterioration, as determined to be reasonable by the FTT.
Mobile Homes Act 1983, paragraph 20; Wyldecrest Parks (Management) Ltd v Whitley [2024] UKUT 55 (LC)
When assessing deterioration, the FTT should compare the current condition of the site with its previous condition, not with a hypothetical minimum contractual standard.
Mobile Homes Act 1983, paragraph 18(1)(aa)
Outcomes
Appeal dismissed.
The FTT was entitled to reduce the pitch fees below the 2022 agreed level, as it was reasonable in light of the deterioration in the park's condition since the appellant's acquisition. The FTT's consideration of the deterioration from a 'pristine' state was also lawful, and future improvements could justify a reversal of the fee reduction.