Park Home FAQs

FAQs when buying a residential caravan, lodge or park home to live in as your home

Residential mobile homes

Helpful video guide to buying a park home, holiday caravan or lodge.

Watch our video that highlights some of the things to consider if you are thinking of buying a park home, holiday caravan or lodge.

Produced by the British Holiday and Home Parks Association (BH&HPA), it takes you through the legal differences between buying a park home or holiday caravan, and which agreement you should have in place in order to protect you.

 

The park home lifestyle

Many thousands of people across the UK enjoy the many lifestyle benefits of living in a residential caravan, lodge, or park home.

But buying a new home is a big financial commitment. Laws exist to protect buyers, but you must get the right legal documents in place, or you risk losing your money as well as your home.

The information below is designed to help you understand your rights and responsibilities when buying a caravan, lodge or park home you intend to live in.

If you want to buy a caravan, lodge or holiday caravan to use for holidays please click here. If you are unsure about the difference between the two you can find more information here.

What legal documents do I need to live in a caravan, lodge or park home as my only or main home?

Under the Mobile Homes Act 1983 anyone buying a residential caravan, lodge or park home must be given a contract called a “Written Statement”. This gives you the right to use your residential caravan, lodge or park home as your only or main home on a licensed residential park.

How do I know if it’s a licensed residential park, rather than a holiday park?

The easiest way to be 100% sure is to check the park’s site licence with the park’s local authority. Check the website of the local council the park is located in for more information or a number to call about caravan site licences. If you do not find a reference to caravan site licences, speak to the planning department.

What’s the difference between a holiday park and a residential park?

Holiday parks and residential parks are completely different.

Holiday parks are designed and built for holiday and leisure purposes.

Residential parks are designed and built for people to live on them.

A holiday park will often have a “reception” where customers can contact the park’s team, as well as communal facilities like toilet and shower blocks, bars, cafés, a shop, children’s play areas, and a swimming pool etc.

A residential park rarely has such facilities and tend to look and feel more like communities or villages because they are designed for living in, not holidays.

What is a mixed park?

A small number of parks are ‘mixed parks’, meaning they are licensed for both holiday and residential use. But mixed parks will usually have designated, separate areas for holidaymakers and residential caravan, lodge or park home owners.

A park’s local authority will be able to confirm if a park has a mixed park site licence.

NOTE: If you’re buying a residential park home on a mixed park, make sure that the pitch your unit is sited on has residential planning permission. Don’t buy what you think is a residential park home sited on a pitch with holiday caravan planning permission.

I’ve heard some horror stories, what do I need to look out for when buying a residential caravan, lodge or park home?

Buying a caravan is a big financial commitment. It’s important you understand exactly what you are getting for you money and your rights and responsibilities as an owner.

Here are some things to look for:

1. The caravan seller or park owner should provide you with a contract called a Written Statement and a separate document called the Park Rules. Together these will set out the terms and conditions including:

• details of the annual pitch fees (the money you pay each year to keep your residential caravan, lodge or park home on a park)
• how and when those fees will be reviewed
• details of the commission the new owners must pay the park if your lodge or park home is sold.
• The Rules of the community you are considering joining, for example:
  • whether any age restrictions apply to those living on the park
  • whether pets are allowed
  • what vehicles may be used and kept on the park.

It’s very important you read and understand the information contained in your Written Statement and the Park Rules before you commit to your purchase, or part with any money.

2. Different parks have different terms and conditions and you need to find one that is right for you.

If you are unsure about anything, take independent legal advice from a solicitor – it will save you money in the long run.

Don’t go ahead with the purchase of a residential caravan, lodge or park home until you have seen a Written Statement and Park Rules you have read and understood them and are happy with the terms and conditions.

3. Residential Parks require a residential park site licence.

You can check your park has one by contacting your local authority – this information is often available online.

4. Mixed parks

If you’re buying a residential caravan, lodge or park home on a mixed park, it’s particularly important you check that the pitch your unit is sited on has residential planning permission. You must avoid buying what you think is a residential park home sited on a pitch with holiday caravan planning permission. You can check this by contacting the park’s local authority.

5. Check your residential caravan, lodge or park home is built for living in.

Different caravans, lodges and park homes are built to different standards but any you buy to live in should be built to a special UK standard known as BS3632. This means they are suitable to live in all year round. However, you still need to ensure the park has the correct site licence in place and that your agreement with the park allows you to make it your only or main home. You can check the park’s site licence by contacting the park’s local authority.

What is the difference between a residential caravan, lodge or park home?

These are all terms to describe residential caravans and they should all be built to a special UK standard known as BS3632, which means that, with the right site licence and the right agreement with the park, they can be lived in all year round.

Generally speaking, lodges and park homes are more expensive than holiday caravans because they tend to be bigger, more luxurious and built to higher specifications. The right to live on a park may also be reflected in the asking price.

Is buying a residential caravan, lodge or park home a good investment?

Buying a residential caravan, lodge or park holiday home is usually more affordable than buying a bricks and mortar property. However, it’s probably better to think of your purchase as ‘buying into a lifestyle’, rather than an ‘investment’.

This is because the resale value of a residential caravan, lodge or park home is never set in stone and is based on many factors including:

• The desirability / location of the park.
• The age and type of residential caravan, lodge or park home.

While the value of pitches on the most sought after parks in idyllic locations can and sometimes do increase over time, the price of second hand caravans, lodges and park homes normally depreciate with age.

It’s also important to remember that if you or your family sell your residential caravan, lodge or park home in the future, the new buyers will be required to pay a commission fee to the park – the details of which can be found in your Written Statement.

The reason why so many thousands of people choose to live on a residential park is because it often enables them to free up some money from the sale of their family home, while relocating to a beautiful location, surrounded by a community of like-minded people, with all the health and lifestyle benefits that brings.

How much should I expect to pay for a residential caravan, lodge or mobile home?

Prices vary up and down the country and, like conventional properties, location is a key factor influencing the cost, along with the age and type of residential caravan, lodge or park home you choose.

Is it worth buying a second hand residential caravan, lodge or park home?

Many people buy second-hand residential caravan, lodge or park homes. Similar to buying any other home, we recommend buyers conduct their purchase with the support of a solicitor. Also, that they employ a surveyor to assess the condition of the home. For information on other things to consider when buy a second hand caravan or lodge please read the next question.

What’s the difference between residential caravan, lodge or park home from a park, or buying it from a private seller?

In both cases, you are paying for two things:

1. The physical caravan, lodge or park home.
2. The right for you to occupy the pitch on which your residential caravan, lodge or park home is sited, subject to certain conditions.

Park homes come under the Mobile Homes Act 1983, so whoever you buy it from, you must ensure that an agreement called a Written Statement is in place with the park owner to ensure your legal rights are protected.

When you buy from a private seller, a statutory sales procedure must be followed. You can read about this procedure here – Selling or gifting a park home – GOV.UK (www.gov.uk).

Finally, if you buy from a park you will be protected by the consumer rights which apply to a business sale. For example, the residential caravan, lodge or park home must be of satisfactory quality. If you buy from a private seller then you will not have the same rights unless both parties agree.

What’s included in the price of a residential caravan, lodge or mobile home?

The price will usually include all of the carpets, furnishings like beds and sofas, large kitchen appliances such as a fridge, oven and hob and other basic equipment like bathroom fixtures and fittings.

If you’re buying a brand-new unit, you may be offered other features such as double glazing, upgraded central heating and decking. Get all of the details in writing to ensure there are no surprises once you get the keys.

What else should I budget for?

If you are buying a new residential caravan, lodge or park home that isn’t already located on a park, check if you’ll need to pay for it to be transported to your park from the factory, sited on its pitch, and “commissioned” (connected to the utilities such as water, electricity and sewerage). Other costs to consider will be the annual pitch fee (what you pay for the right to occupy your pitch on the park), bills for utilities such as water, gas and electricity, plus council tax and insurance. Again, make sure you get details of all of the relevant additional costs in writing to ensure there are no surprises later.

We would also recommend paying for some independent legal advice.

Where is the best place to buy a residential caravan, lodge or park home?

That really depends on what you are looking for. Something close to family and friends or somewhere new you have always wanted to move to?

How can I tell if the park is right for me?

Visit several parks to get a feel for what they are like and maybe ask the park owner to introduce you to some residents for an informal chat about their experience.

Will the park be open all year round?

Yes, you can live on a residential park all year round, just check with the park’s local authority that it has a residential site licence.

 

British Holiday & Home Parks Association, Chichester House, 6 Pullman Court, Great Western Road, Gloucester GL1 3ND

July 2024