Understanding One of the Most Discussed Costs in the Park Home Sector
If you’re considering buying or selling a residential park home, you’ve probably come across discussions about the 10% commission paid when a home changes ownership. It is one of the most unique aspects of the residential park home market and often raises questions from both buyers and sellers.
Many people are surprised to discover that a commission is payable to the park owner when a residential park home is sold. In fact, it is one of the most frequently debated topics within the industry and has recently been the subject of a Government review.
If you’re unfamiliar with the process, the official Government guidance on selling a residential park home can be found on GOV.UK:
https://www.gov.uk/park-mobile-homes/selling-or-giving-away-a-park-home
In this guide, we’ll explain how the commission works, why it exists, who it affects, and what buyers and sellers should know before completing a transaction.
What Is the Park Home Commission?
When a residential park home located on a protected site is sold, the park owner is entitled to receive a commission from the sale price.
According to current Government guidance, the maximum commission permitted in England is 10% of the agreed selling price.
For example:
| Sale Price | Maximum Commission |
|---|---|
| £100,000 | £10,000 |
| £150,000 | £15,000 |
| £200,000 | £20,000 |
| £250,000 | £25,000 |
This commission forms part of the legal process involved in transferring ownership from one resident to another and is entirely separate from any estate agent fees or advertising costs.
Why Does the Commission Exist?
The commission structure has been part of the residential park home sector for decades.
Historically, it was introduced as part of the financial model used by residential park operators. While residents pay pitch fees, park owners also receive income when homes change ownership.
Supporters of the system argue that commission payments help fund:
- Maintenance of communal areas
- Road repairs and infrastructure
- Landscaping and grounds maintenance
- Site management and administration
- Long-term investment into residential parks
The Government recently launched a formal review into the reasons behind commission payments and whether the current arrangements remain appropriate. Details of the review can be found here:
https://www.gov.uk/government/news/government-review-launched-into-park-homes-commission-charge
Why Is the Commission Controversial?
The commission remains one of the most divisive issues in the park home sector.
Many park owners and industry representatives argue that the commission helps support the operation and upkeep of residential parks and enables pitch fees to remain lower than they might otherwise be.
However, many residents feel differently.
A seller who achieves £180,000 for their home may see £18,000 paid as commission. For larger homes, the figure can be considerably higher.
As a result, resident groups have long argued that the system should be reduced, reformed, or removed altogether.
The House of Commons Library has published a detailed briefing examining the history of the commission system, previous reviews, and the arguments both for and against reform:
https://commonslibrary.parliament.uk/research-briefings/sn07003/
Does the Commission Apply to Every Park Home?
No.
The commission generally applies to residential park homes situated on protected sites operating under the Mobile Homes Act.
Holiday caravans, holiday lodges, and other holiday accommodation are usually subject to different agreements and regulations.
Before buying any park home, it’s important to understand exactly what type of property you’re purchasing and the rights associated with it.
The Leasehold Advisory Service (LEASE) provides useful independent guidance on buying and selling park homes:
https://parkhomes.lease-advice.org/
Can a Park Owner Charge More Than 10%?
No.
The maximum commission is currently established through legislation and cannot simply be increased by an individual park owner.
While different parks may have different rules, facilities, and pitch fees, the commission percentage itself is regulated.
Any future changes would require legislative reform.
Is the Commission Being Reviewed?
Yes.
The commission structure is currently under review following a Government call for evidence seeking feedback from residents, park owners, industry bodies, and other stakeholders.
The review is exploring why commission payments exist, whether they remain justified, and what impact any future changes could have on residents and site operators.
You can read the full call for evidence here:
https://www.gov.uk/government/calls-for-evidence/park-homes-reasons-for-commission-payments
At the time of writing, however, the maximum commission remains unchanged.
What Should Buyers Consider?
When purchasing a residential park home, it’s important to look beyond the asking price.
Buyers should consider:
- Pitch fees
- Site rules
- Age restrictions
- Park reputation
- Future resale potential
- The impact of commission on future sales
Understanding these factors early can help avoid unexpected costs or misunderstandings later.
What Should Sellers Consider?
For sellers, the commission should be factored into expectations from the very beginning.
Before marketing your home, consider:
- Current market values
- Comparable homes for sale
- Expected proceeds after commission
- The quality of your photographs
- The information included in your advert
A well-presented listing with realistic pricing is often more important than simply choosing the highest asking price.
Final Thoughts
The 10% park home commission remains one of the most significant costs associated with buying and selling residential park homes.
Supporters view it as an important source of income that helps maintain residential parks and their infrastructure. Critics argue that it can significantly reduce the amount sellers receive when they move home.
Whatever your opinion, understanding how the system works is essential before entering the market.
As Government reviews continue and discussions within the industry evolve, the future of the commission system is likely to remain a topic of interest for buyers, sellers, residents, and park owners alike.
If you’re looking to buy or sell a residential park home, you can browse listings from across the UK or advertise your own home on 360 Park Homes.