The Costs of Owning a Holiday Home

Owning a holiday home is a dream for many, offering a low maintenance escape to your favourite location, year-round holidays on your terms, and even the potential to offset your costs by subletting through Love To Let. But alongside the joys of ownership come a number of financial commitments. Understanding the full scope of these costs ensures you’re making an informed, confident decision, one that aligns with your lifestyle and budget. And we’re here to help you every step of the way. This guide breaks down the key expenses involved in owning a holiday home on a holiday park in the UK, from the upfront purchase to ongoing running costs. Whether you’re looking at static caravans for sale in Cornwall or browsing brand new static caravans for sale across the UK, this is your starting point. Avoid surprises and stay in the know, here’s all you need to know about the costs of owning a holiday home. 

1. Initial Purchase Price

The first, and most obvious, cost is the purchase price of the holiday home itself. This can vary widely depending on several factors:

• Location: Coastal spots like Cornwall or the New Forest are typically more expensive due to demand.
  
• Type of holiday home: Will you choose a static caravan or lodge? The choice you go with and how big it is will affect the price.
  
• New or pre-owned: New models command a premium but pre-loved can make holiday home ownership more accessible.
  
• Size and layout: All our holiday homes and lodges offer open plan layouts, generous living spaces, private decking, and a variety of bedroom and bathroom options.
  

2. Site Fees

Site fees, sometimes referred to as ‘pitch fees’, can vary. These fees simply cover general day-to-day services including all park maintenance, landscaping, security and park facilities and tend to go up gradually each year with inflation.

Average site fees can range from £3,650 to £9,200 annually, depending on the park’s location, facilities, and the size of your pitch. Be sure to ask about this upfront, when deciding on a holiday home.

While it’s a yearly commitment, many owners find the value well worth it, especially when factoring in the ease and comfort of returning to a beautifully maintained park. You can even use it in tandem with our Love To Let service to offset the yearly fee.

3. Utilities and Services

Like any home, holiday parks have recurring utility costs. They are usually metered and billed separately for electricity, gas, water, sewerage, and insurance. Please note, these parks are for holiday use only—you cannot live here permanently.

Site fees are reviewed annually, notified in November, and payable by January 31st. Other running costs include non-domestic rates and water charges, billed annually in March for the period April to March, due within 14 days.

Gas and electricity are metered and billed quarterly, payable within 14 days; some parks use gas bottles. Annual gas safety certificates and electricity tests every 3 years are also required. As an owner, you will also be responsible for providing a TV licence for your holiday home. When you buy a holiday home, we’re here to take the stress away with a free 12 month warranty, helping you settle in smoothly and worry-free.

4. Insurance

Just like your main home, your holiday home needs insurance, covering the structure against risks like fire, flood, theft, and vandalism. At Lovat Parks, all owners are required to have suitable insurance in place. Once arranged, you can usually set up a monthly direct debit for peace of mind all year round.

5. Depreciation and Resale Value

Static caravans and lodges do depreciate over time, particularly newer models in the early years. Factors that influence resale value include the overall condition and maintenance and the age and model of the home. It’s important to think of your holiday home purchase as a lifestyle choice rather than a financial one. If you decide to sell your holiday home in the future, we’re here to support you. You can choose to sell it back to us or list it on the open market.

Ready to Learn More?

Book a visit to one of our Lovat Parks today and get expert guidance from our friendly team.  We’ll walk you through the exact costs for your chosen location and holiday home and help you explore financing options. Your first step to ownership starts here.

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