In the UK, there are an estimated 365,000 caravan holiday homes, according to a pamphlet published by resort owners Park Link and the parks and campsite industry contributes more than £6 billion annually to the UK economy.
Two years of Covid travel restrictions also gave a mighty boost to staycations in the UK.
A static caravan – or holiday caravan home as it’s probably more widely known these days – can be your very own home away from home. It can also offer an attractive destination for breaks for you, your family, and your friends. Plus, you may also have paying guests too, so enjoy income which can help with the running and maintenance costs.
It’s enough to tempt you into buying a static caravan! So, if you are thinking about such a purchase, what do you need to consider? Here we have put together some tips on what you need to think about, as well as answering some FAQS about holiday park caravan ownership …
Is buying a static caravan a good investment?
What makes a good investment? If you are asking yourself whether static caravans or holiday homes hold their value, then it might be worth thinking about some of the basics of asset ownership. Most things we purchase in life will reduce in value as they age. That is a process called depreciation. The rate of depreciation will vary depending upon many factors including:
- what the item is;
- it’s make/model/age/rarity;
- how well you have looked after and maintained it; and
- where it is located – including the feasibility and cost of moving it.
There are some exceptions of course, including certain rare luxury vehicles, some antiques and perhaps most notably, property. Even in those cases though, their basic values might decrease as well as increase, subject to the unpredictable nature of market demand.
Static caravans are no exception. If you consider the word investment to mean that something will be worth more when you dispose of it than it was when you acquired it, then that might not be guaranteed with a static caravan.
There are two important points to make here though:
- a static might prove to be an excellent investment when measured by its massive impact on the expansion of your leisure opportunities and, therefore, your quality of life; and
- maintenance and TLC won’t, by itself, avoid the depreciation in value of your caravan but it might slow it down – slightly. Not everyone agrees with that, but it seems intuitive that a well-maintained static in good order is likely to command a higher price than one in poor condition.
How long will a static caravan last?
Once again, there is no hard-and-fast answer to this question. Many sites and associations quote very different figures ranging from 10-15 up to 20-30 years.
Much will depend upon the age and condition of the holiday home when you bought it, whether it is a quality build, and how seriously you take the need for regular maintenance.
Note that irrespective of condition, some sites may have specific clauses limiting the maximum age of caravans to 10, 15 or 20 years. Once your static caravan is older than the prescribed maximum, the site owners may have a legal right to ask you to remove it, even if many do not exercise that right.
Choosing the most suitable location and holiday park for you – what do you need to consider?
It’s where you’ll be looking to return to again and again – for all those holidays, breaks, and escapes that bring you such joy. Choosing the most appropriate location and holiday park is imperative:
Location
- unless you plan to use your caravan perhaps only once or twice each year, you may wish to make sure that the caravan holiday park is within sensible commuting distance of your permanent home – so you can it more easily for fast getaway weekend breaks and the like;
- when choosing a holiday park location, remember that the choice of site may affect a host of other considerations, including the cost of your static caravan insurance, for example – sites with a history of flooding or which have security issues may result in you needing to spend more on your annual caravan insurance policy;
Facilities
- some holiday parks may be very rural, have few if any onsite facilities and, be a long way from things such as shops – so, if you like rural isolation that may be fine but not if you like having a shop or a pub, let’s say, within just a few minutes of where you are staying;
Budget
- remember it’s not just the price of buying your static caravan or holiday home – after you have completed the purchase (and allowed for legal fees and any other administrative expenses), you need to ensure you have enough money going forward;
- maintaining a caravan costs money, just as maintaining and running a house does;
- with that in mind, choose a holiday home that is safely within your budget, and which will leave you with some money left over to cope with maintenance, any site fees, and odd emergencies, plus allow for caravan insurance too;
Making the purchase
- if it is a private sale, ask the vendors why they have chosen to sell – even though anyone trying to sell a holiday home is hardly likely to say they find the site or the surrounding area unpleasant;
- nevertheless, pressing a little harder and getting into a discussion with them, may result in you spotting a few warning signs that suggest their reasons for the sale may be ones that you yourself might find to be issues in due course;
Inspecting the static caravan, its pitch, and its surroundings
- look closely at the caravan’s condition – a lot of this is common sense but if you are not familiar with statics, it might be advisable to take someone with you who is, so you can get them to check things such as the underneath, couplings, and for signs of significant corrosion around the trailer;
- walk and drive extensively around the area of the holiday park site – an animal silage farm a mile or two down the road might prove to be a significant issue for you at the height of summer when the wind is blowing in a certain direction;
- these are things you’ll want to discover in advance rather than afterwards;
- note the condition of your neighbours’ caravans – the one you are looking at might be in pristine condition but if others around are shabby and slightly run-down, it may tell you something about the nature of the holiday site and your probable outcomes for the future sale of the caravan if and when you need to; and, of course,
- what are the holiday park pitch fees?
Do I have to take the site owners’ static caravan insurance?
In almost all cases, the answer is likely to be no – in most cases you are typically under no such obligation to take their static caravans cover.
The site owners may have a right to:
- insist that you hold appropriate third-party liability cover insurance since this is part of their duty of care obligations to other site users – however, it is not the same thing as saying you must use their cover if you can find more suitable and cost-efficient cover of your own from another source;
- inspect your own insurance cover to confirm that it is active and appropriate – the site owners or management may ask to take a copy of your certificate and make a modest administrative charge for doing so.
There are a few very rare and unusual situations, linked to land ownership and deeds, where the owners might have a right to require you to purchase the insurance cover offered by them. These circumstances are uncommon and if you’re in any doubt, you should take advice.
Who can stay in my static caravan?
In theory, you can choose whoever you like – but there may be some limitations in terms of your site lease agreement. For instance, some might specifically ban or restrict:
- single-sex groups under a certain age (without older supervision);
- overnight stays by groups where the numbers exceed the caravan’s stated maximum berth capacity;
- the use of the caravan for commercial letting purposes (paying guests or tenants, in other words); and
- people with pets.
In some cases, you might also see limitations specified by your static caravan insurance policy. Exclusions might refer to aspects such as lettings or people bringing exotic or non-domesticated pets inside the holiday home.
Read your holiday park’s site agreement, lease, and static caravan insurance policy to see any applicable clauses.
Can static caravans be moved?
Technically, yes – it is not for nothing that they are called mobile homes – and they had to be moved originally to get them onto the site.
Usually moving your caravan is a process involving a large trailer – though some can be towed for limited distances if, for example, you’re changing your pitch on the same site.
By definition, though, they are primarily meant to be static. Always discuss a planned move with your insurance provider well in advance.
Can I live full-time in my caravan onsite?
That depends upon two things;
- whether your site is appropriately licensed by the local authority for permanent year-round occupation – most will not be and, therefore, you would be forbidden from doing so by local authority regulations;
- irrespective of the local council’s inclinations, some site owners are not interested in offering year-round occupancy – it might involve them in considerable extra costs for the provision of services even if the local authorities permit it.
Generally speaking, therefore, the answer is likely to be no – though there are some sites where it might be permissible.
Do you pay council tax if you live in a static caravan?
Static caravans on holiday sites are typically not designed for permanent, all-year-round occupation, so you will not be liable to pay council tax.
If you live in a park home, however – which is not on a holiday park but a residential park home site – you will be liable to pay council tax, as it is your permanent place of residence.
How can I tell before purchase whether a static has serious rust problems?
Some visible rust isn’t necessarily a sign of a pending catastrophe. Assuming it hasn’t penetrated deeply, it can be cleaned off and painted over in most situations.
If you see freshly painted areas of metal, it might or might not indicate potential problems. The trouble is, you don’t know if any rust underneath was eliminated correctly beforehand or whether it was just sprayed over for cosmetic effect.
Rusty holes, cracks and splits are a bad sign, as is flaking metal. If you don’t know how to tell the difference between surface and serious rust, you will probably want to get a full inspection of the static from someone who can.
Will I need a separate TV Licence for my holiday park caravan?
Possibly.
If your normal TV at home will be unused while you’re in your caravan, then you will not require a separate licence. However, if someone is using it while you’re using another TV in your holiday home then you will need a separate licence.
Note – that applies even if your caravan is connected to satellite TV.
Will the static caravan I’m considering own the land it stands on?
That would be extremely rare and most unlikely.
Typically, the site owners will own the land and you will essentially lease or rent a piece of it by way of a pitch, upon which your static will stand.
What right of redress do I have after purchase?
The law is relatively complex but in most respects, the principles of caveat emptor (buyer beware) apply. They’re slightly different if the static is new as opposed to second-hand.
For second-hand caravans, the seller and site owners must not materially misrepresent either the caravan or the terms and conditions under which it occupies the leased land. If, for example, after purchase, you discovered that the caravan had been misrepresented and was 5 years older than stated, then that might be a fraud and your rights for legal redress are likely to be strong.
By contrast, discovering that the caravan holiday home is much draughtier than you had been led to believe and, therefore, costs more to heat or that you hadn’t spotted major underside rust, might leave you with relatively few legal rights.
It’s important to be aware of and to protect your interests whenever you’re involved in the purchase of a static caravan holiday home – the support and advice of the relevant experts may be a help. Any assurances you may be given about the caravan’s condition you might want to agree and record in writing.
Can I do what I like to enhance my holiday caravan after buying it?
Broadly speaking, the answer will be yes, if it involves internal modifications such as configuration changes or the installation of new equipment and appliances.
Remember to notify your caravan insurance provider though if your proposed changes are anything other than cosmetic. If the modifications have increased the overall value of your static caravan, you will also want to increase the total sum insured.
For external modifications and changes, the position may be slightly more complicated and involve some discussion with your site owners. For example, adding a new extension which meant a more restricted view for a neighbour or overflowing your existing pitch, is almost certain to require their permission.
Generally, of course, common sense on the part of all the parties involved will apply.
How would you summarise the key points of buying a static caravan?
These will differ according to your specific individual requirements and circumstances. Generally, however:
- think carefully about just what it is that you want and be sure you understand the type of location, holiday park, and pitch that will deliver upon those aims;
- make the holiday park’s location your top priority – it’s easier to compromise on the precise specifications of your static caravan than its location;
- be cautious about riverside or coastal locations – be sure to check the flood risks;
- ensure your finances are clear in advance and reserve some disposable cash for coping with unexpected post-purchase expenses;
- don’t be swayed by visual impressions – get an expert to conduct a nuts-and-bolts advance inspection; and
- don’t view your holiday home as a purely financial investment – since it’s unlikely to be that – but it will typically bring you and your family many hours of joy and relaxation.
Further reading: Guide to buying a static home.
Disclaimer: Please note that this article is for general informational purposes only and is based on our current understanding of law and legislation – which may change. If you are unsure, please seek independent, professional advice for clarification on certain aspects of this blog.