Average Pitch Fees

Update on Figures Regarding the Average Pitch Fee

in Relation to the 10% Commission

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This Average Pitch Fee document contains two data examples,

you can find these at the bottom of the page

 

Example 1 uses the figures produced following the research into the 10% Commission by Liverpool and Sheffield Universities. 

In the publication The impact of a change in the maximum park home sale commission (publishing.service.gov.uk) the following were provided:

 

Average Pitch Fee at time of Survey (May 2021) £151.66 per month

 

Average number of homes per site 56.5

 

Average Commission received per resale £11,064

 

Average number of re-sales per site per annum 2.6

 

The above information indicates that the average income from pitch fees was £102,825 per year.

 

Along with commission from re-sales of £28,766.40 per year

 

Example 2 uses the figures produced on October 21st 2022 in the document

Impact Assessment template (parliament.uk)

 

Average Pitch Fee for 2021 £172

 

Average homes per site 54.8

 

As this document is not related to the Commission no figures concerning re-sales are given.

 

Conclusions

 

Since the above figures were formulated in 2021 Site owner's income has increased far more than anyone could have forecast in that year. Because of the different starting figures the results of the analysis differ. Both sheets are calculated on the basis that 1/12th of site fees are reviewed each month and real RPI figures are used up to and including December 2022. The remaining RPI figures are based on the Bank of England forecast for 2023.

 

Example 1

The predicted average pitch fee two years after the research was carried out is £180.29 an increase of 18.9% in income.

 

Example 2

The predicted average pitch fee two years after the research was carried out is £204.47 an increase of 18.9%

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In the first example the site owners income will have been increased by £19,411.14 in the 24 months ending June 2023. These increases will continue year after year and augmented by inflation.

 

The second example shows the increase as being £21,352.27 for the same period.

 

Abolishing the commission would reduce the income of the average site owner by £28,776 per year if resale prices remain the same. However this is a pre tax profit figure so the actual loss could be far less.

 

If a Limited Company lost £28,776 from their pre tax profits the actual loss would be £21,582. Also to be noted is the reduction in Employer's National Insurance Contributions recently.

 

If there ever was a time to justify abolishing the commission it is now as I fail to see how any Site Owner can plead poverty if it is removed.

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