The UK government has initiated a review into the 10% commission fee charged on the sale of park homes, a long-standing issue that has sparked considerable debate within the sector. This commission, which can amount to thousands of pounds, is mandated under the Mobile Homes Act 1983 and is payable to site owners when residents sell their homes.
Background to the Commission Fee
The Mobile Homes Act 1983 requires park home residents to pay a commission of up to 10% of the sale price to the site owner. This payment has been a source of ongoing concern among residents, with questions raised about its fairness, transparency, and the justification for the charge. The government’s review aims to clarify the rationale behind this fee and its role within existing legislation.
Details of the Government Review
A call for evidence was launched on 5 March 2026 to gather information from stakeholders across the sector. The government seeks to understand the original reasons for the commission, what it covers, how it is calculated, and how it relates to other aspects of the Mobile Homes Act. Additionally, the review will explore the business models operating within the park homes sector to provide a comprehensive picture.
Housing Minister Matthew Pennycook commented on the review, stating: “Recognising the longstanding concerns among park home residents about the requirement to pay site owners a commission upon sale of a park home, we are launching a call for evidence to better understand the rationale for it. Gathering vital information about the commission from the sector will allow us to act and thereby provide the clarity and certainty that park home residents and site owners have rightly been demanding. I encourage everyone with an interest in the commission to contribute to this call for evidence.”
Context and Previous Commitments
This review follows a commitment made by Minister Pennycook in the previous year to examine the issue. Alongside the call for evidence, the government has published a summary of stakeholder responses to recommendations from a 2022 research report on the impact of changes to the commission payment. These responses highlighted a lack of clarity and consensus within the sector regarding the commission’s rationale.
Scope of the Call for Evidence
The 12-week consultation period will remain open until 29 May 2026. The government intends to use the responses to inform a formal position on the commission fee. Specifically, the review will investigate:
- The initial reasons for charging the commission;
- What the commission payment covers and how it is calculated;
- The commission’s connection to other provisions within the Mobile Homes Act 1983;
- A clearer understanding of the park homes sector’s business model.
What this means for landlords
For landlords and site owners, this review signals potential changes to a key aspect of park home sales. The outcome could affect how commissions are justified and calculated, potentially impacting revenue streams. It also emphasises the government’s commitment to transparency and fairness in the sector, which may lead to clearer guidelines and regulatory adjustments. Landlords should monitor the review’s progress and consider contributing to the consultation to represent their interests.
For residents, the review offers hope for greater clarity and possibly fairer terms when selling their homes, addressing long-standing concerns about the commission’s fairness.
Source: Based on reporting from the Ministry of Housing, Communities and Local Government
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