The decision to slash commission charges payable to site owners on the sale of Welsh park homes has been put on ice, subject to a judicial review.
The Welsh Assembly previously declared it would cut the maximum rate of commission on the sale of mobile homes by a percentage point a year from ten per cent to five per cent. However, a statement issued by Julie James AM, Minister for Housing and Local Government, on 27 March has thrown this into doubt and confusion.
In the statement, Ms James said: ‘As you will know from my statement of 4 March, the decision to reduce the maximum rate of commission payable on the sale of a mobile home by one percentage point each year from ten per cent to five per cent has been the subject of judicial review proceedings.
‘As part of that process, I gave a commitment to the Court not to introduce any changes until the judicial review was complete.
‘Having given careful consideration to information which has come to light since proceedings began, I have decided not to implement the decision, but to reconsider the matter afresh.
‘As members, park home owners and site owners would expect, I want to ensure that all relevant information is fully considered before any change to the maximum rate of commission is implemented.
‘Therefore, and in order to ensure any change properly achieves the objectives it was intended to achieve, I will be retaking the decision on whether to change the maximum rate of commission, and if so by how much and over what period, entirely afresh.
‘As part of my reconsideration I will be engaging with the sector and am minded to commission further research to ensure I have the strongest possible evidence base on which to base my decision.
‘I realise that some people – park home residents in particular – may be disappointed to hear this.
However, it is important to ensure all information available is carefully considered. Ministers’ concerns throughout this matter have been to balance the interests of all parties.
‘I believe that reconsideration of the decision will contribute further to that aim, and is the best way forward for all parties. I will keep members informed on this matter.’
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