![[2024] UKUT 197 (LC)](https://backend.juristeca.com/files/emisores/logo_lnJS4Uj.png){kind=logo}
Pitch fee reviews under the 1983 Act
Pitch fee reviews under the 1983 Act
Like all occupiers of homes on protected sites, the respondents’ occupation of their pitches is governed mainly by terms implied by statute and found in Chapter 2 of Part 1 of Schedule 1 of the 1983 Act. The terms which regulate the review of pitch fees are paragraphs 16 to 20.
Paragraph 16 provides that the pitch fee may only be changed by agreement or, in the absence of agreement, by the FTT if it "considers it reasonable for the pitch fee to be changed and makes an order determining the amount of the new pitch fee."
The procedure for increasing a pitch fee is specified in paragraph 17 which provides for annual reviews from a review date which in this case is 1 January. The owner must give notice of its proposed increase using a prescribed form at least 28 days before it is due to take effect. If the occupier agrees to the proposed fee it becomes payable from that date. If the occupier does not agree, the owner may apply to the FTT for an order determining the amount of the new pitch fee.
Paragraphs 18, 19 and 20 provide guidance to the FTT on the factors which may be taken into account when conducting a review.
Paragraph 18(1) specifies that, when determining the amount of the new pitch fee “particular regard” shall be had to a number of matters. Of particular relevance to this appeal are the matters identified in paragraph 18(1)(aa) and (bb), namely:
“(aa) […], any deterioration in the condition, and any decrease in the amenity, of the site or any adjoining land which is occupied or controlled by the owner since the date on which this paragraph came into force (in so far as regard has not previously been had to that deterioration or decrease for the purposes of this subparagraph);
(ab) […], any reduction in the services that the owner supplies to the site, pitch or mobile home, and any deterioration in the quality of those services, since the date on which this paragraph came into force (in so far as regard has not previously been had to that reduction or deterioration for the purposes of this subparagraph);”
Other matters to be taken into account include sums spent by the site owner since the last review date on improvements for the benefit of the occupiers and to which, after consultation, a majority has not objected. Paragraph 18(3) explains that, where the pitch fee has not previously been reviewed, references to “the last review date” are to be read as references to the date when the agreement commenced.
Paragraph 19 then identifies certain costs which may not be taken into account in determining a new pitch fee. Finally, paragraph 20 creates a statutory presumption that unless it would be unreasonable to do so having regard to paragraph 18(1) the pitch fee will increase or decrease by not more than the percentage increase or decrease in the retail prices index for the previous 12 months (with effect from 2 July 2023 the relevant index became the consumers prices index).
The Tribunal has often given guidance on the application of these provisions. The effect of this guidance was recently summarised in Wyldecrest Parks (Management) Ltd v Whitley [2024] UKUT 55 (LC), at [28]:
“In summary, where none of the factors in paragraph 18(1) is present, and no other factor of sufficient (considerable) weight can be identified to displace the presumption of an RPI increase, the task of the tribunal is to apply the presumption and to increase the pitch fee in line with inflation. Where one of the factors in paragraph 18(1) is present, or where some other sufficiently weighty factor applies, the presumption does not operate or is displaced. Then the task of the tribunal is more difficult, because of the absence of any clear instruction on how the pitch fee is to be adjusted to take account of all relevant factors. The only standard which is mentioned in the implied terms, and which may be used as a guide by tribunals when they determine a new pitch fee, is what they consider to be reasonable. Paragraph 16 provides that, if the parties cannot agree, the pitch fee may only be changed by the FTT if it "considers it reasonable for the pitch fee to be changed and makes an order determining the amount of the new pitch fee." The obvious inference from paragraph 16 is that the new pitch fee is to be the fee which the tribunal considers to be reasonable.”