The annual increase is based upon RPI rates which can be found on the following Government website
http://www.statistics.gov.uk/cci/nugget.asp?id=19
RPI inflation rose to 4.4 per cent in June, up from 4.3 per cent in May. The main upward pressure came from mortgage interest payments – which are excluded from the CPI – with lenders passing on the remainder of this May’s quarter point increase in the Bank Rate. Other factors impacting on the RPI were similar to those that affected the CPI.
Windermerelodge
I think that there are two distinct schools of thought here.
One is that the site fees are a legitimate profit stream for SLP and that they are within their rights to increase this by the rate of inflation and increase the overall take as the number of lodges increases.
The other – to which I subscribe, and which I have explained on the “other forum” - is that the site fees are in fact a pot from which a set of defined costs has to be paid.
Why do I think this? Well when we bought our first lodge we were emailed a draft contract (nothing like the one they gave us to sign in the end by the way, which was 2 pages not the 4 pages of this one, nor the 15 pages of the one we had to sign for our second lodge), but I have this one on my computer where I am now, and this what it says:
c. The Pitch Fee will be reviewed having regard to the following criteria:
We are entitled to pass on to you as appropriate any charges which are not within our control such as rates, water charges and other charges paid to third parties (so how come we have to pay these in addition I ask?)
Any changes in the cost of living as shown by the General Index of Retail Prices or another index having a similar purpose (what ANY old index?)
Sums spent by us on the Park and/or its Facilities
Changes on the cost of salaries and wages, which we have to pay our staff
Changes in the length of season
Any other relevant factor
It is clear from this that site fees are intended to cover costs and not merely as an income stream for SLP.
From this perspective, in the context of Limefitt Park, the rate of inflation this year is really not the most important factor.
Far more interesting is the fact that the costs in 2005 when we first bought at Limefitt Park have probably hardly increased at all – there certainly haven’t been any vast sums spent on general facilities apart from the conversion of the owners’ bar (but let’s allow them a generous 10%) whilst the number of lodges contributing towards these costs has increased by over 20 % (guessing that over 15 of the 77 lodges you allude to are new since we bought) and we have already had one “inflationary” increase since then, so they are probably bringing in about 25% more in fees than they were in 2005.
On that basis shouldn’t they be REDUCING the site fees paid by each lodge?
But then didn't I notice in the latest "Owners' Choice" magazine that they are extending the season at another park without increasing the site fees accordingly?. Perhaps they expect us to subsidise the other parks?
Any thoughts?
J