Holiday park annual costs under scrutiny as media highlights industry-wide abuse
Holiday accommodation ownership options
The price of a holiday cottage or apartment can start at hundreds of thousands of pounds, and can easily rocket up to millions. An appealing option if you have that sort of money spare, but not practical for most of us.
Timeshares seemed to offer a viable alternative. In theory you owned just the part of the apartment that you could practically use. Eg if you would only holiday two weeks of the year, you could share the cost of buying a unit with 25 or more other couples.
The reality turned out to be very different as greedy developers ruined the industry. Most European resorts have been driven out of business following hundreds of millions of pounds worth of punitive compensation judgments awarded against timeshare companies by courts of law.
Positioned (price-wise) between the cheaper timeshare, and the more expensive holiday apartment, holiday park static caravans or lodges offer the chance to own your accommodation outright. The cost varies from as little as £25,000 all the way up to hundreds of thousands of pounds for a luxury lodge. A favourable comparison to buying a holiday cottage or apartment outright.
Find a trustworthy park
Holiday park ownership is a polarising subject. While recent media reports have revealed widespread customer dissatisfaction and abuse, there are conversely plenty of owners zealously defending their parks and holiday lifestyle. Indeed, online Facebook groups are often a hotbed of flared tempers as each ‘faction’ decries the other.
The ‘cons’ argue that they were treated deceptively, and the ‘pros’ counter that people should have been more careful when reading the contracts they signed.
“One thing is for certain,” says European Consumer Claims (ECC) director Greg Wilson. “Holiday park lodges still cost a significant amount of money. A potential purchaser would be well advised to research before signing on the dotted line.
No matter how trustworthy, convincing or likeable the salesperson seems.”
Annual costs to consider
Even if your park is completely above board, your salesman told you the whole truth and the contract is clear and straightforward regarding sale conditions, there are still various expenses which are vital to appraise before taking the leap into lodge ownership.
- Ground rent: The average ground rent for a site with minimal facilities in 2025 was £3000. The more popular parks can charge a lot more than this, with Parkdean Resorts quoting annual fees of between £3495 and £14,495 for the current year. Haven list their fees as starting from £4535 and rising to £10,000+
- Utilities: These must generally be paid for at a premium rate via the park operators. Typically you would be expecting to pay between £400 and £800 per year.
- Water and rates: Again these must be paid directly to the park. Expect to pay between £300 and £600 per year
- Insurance costs: Insurance is generally mandatory, but in most cases you are free to source your own provider. A typical starting cost is around £300 for a caravan worth £20,000. A 20 foot lodge can be as much as £600 a year, and costs rise according to the value of the unit being insured.
- Maintenance and service charges: You are responsible for the maintenance of your unit, and in many cases must pay a charge directly to the park for this service. Expect to pay around £1200 per year.
On top of these relatively transparent costs, there are other, lesser known expenses to factor into your decision:
Hidden costs
- Commission on private sales: Most parks require a customer to offer them first refusal on a sale, and if you do sell privately you are generally contracted to pay the park up to 20% of the sale value.
- Depreciation: Multiple former lodge owners report shocking losses in value in short periods of ownership. Often people lose an astounding 80% of the value in less than a year. To add insult to injury, the parks have been reported as subsequently reselling the unit for a greatly increased price.
- Flooring: Caravan floors are usually constructed from wood and last around 10 years. Expect to pay upwards of £6000 to replace this flooring.
- Renting through the park: Many sites will not allow you to rent your unit privately to make money and require you to go through them. according to some reports, the park’s cut can be as much as 78%.
- Seasonal closures: Some parks have longer closed ‘off-seasons’ than others. This should be counted as a cost if you are relying on rental income from your unit.
- Disconnection fee: If you either sell your static caravan or are mandated to remove it from the park you are likely to be charged a hefty ‘disconnection fee’ of between £250 to £2000.
Protect yourself
Check the park rules and regulations thoroughly. These can make a great deal of difference to your experience as an owner. For example do they allow pets? Do they restrict the size or amount of dogs per family? Do dogs need to be on a lead?
Many parks have rules about a caravan or lodge being maintained to an vaguely defined, subjective standard. This rule can be used to force a lodge owner to either upgrade or sell their unit at a huge loss.
Knowing rules that could affect your enjoyment or future finances can help you avoid making a bad decision.
The rules may be too detailed to take in during your sales presentation, but that’s ok. Take them home and take all the time you need to understand them thoroughly. The park will not like that, but you should nevertheless insist.
You do not have to make a decision on the day.
Have the paperwork checked. One of the main arguments of people defending the holiday parks is that the buyer should have checked the terms and conditions before signing up. Logically it’s hard to argue with this. Of course people should check conditions in detail before making a big financial purchase. But life is never that simple.
Salespeople can convince customers that the T&Cs don’t mean what they look like, or that they are outdated/otherwise misleading. The personable, trustworthy seeming salesperson in front of you can convince the most astute of people to take their word over a lengthy, complex document.
Listen to the advice given by the holiday park defenders and have the paperwork checked by an actual solicitor. It may cost you a little, but that money either buys you peace of mind, or saves you from making a far more expensive mistake.
Again, the park may try to persuade you to make a decision on the day without having the contract checked professionally.
Ignore them and do what is best for you.
Already fallen foul of a holiday park?
If you feel you have been treated unfairly by a holiday park, get in touch with us for a free, independent, no-obligation consultation.
Our team will let you know your best options for seeking financial redress.
