Buying a static caravan or lodge on a holiday park sounds idyllic — until you see the annual site fees. These charges cover ground rent, maintenance, and amenities, but they often escalate with little notice and no meaningful cap. Worse, many park operators include clauses that restrict your ability to sell your unit or require you to use the park's own resale service at a hefty commission. The holiday park industry in the UK has faced significant scrutiny from consumer groups, yet many buyers still sign agreements without understanding the long-term financial commitment or the limited protections available.
What is a Annual Fees?
A holiday park membership contract (sometimes called a pitch licence agreement) is the agreement between a static caravan or lodge owner and the holiday park operator. It governs your right to keep your unit on the park's land, the annual site fees you must pay, the rules you must follow, and the conditions under which the park can terminate your agreement or require you to remove your unit. These are typically rolling annual licences rather than fixed-term leases.
Red flags to watch for
Without a cap or formula tied to RPI/CPI, the operator can raise fees by any amount each year, and many have imposed double-digit increases.
Some parks charge 15–25% commission on resale and prohibit you from selling privately, dramatically reducing your return.
A short licence means the park can refuse to renew, forcing you to remove your caravan at your own expense even if it's in good condition.
Many parks impose a 15- or 20-year age limit on caravans and require you to buy the replacement from the park's own stock at inflated prices.
If the contract says you're bound by park rules that can be changed at any time without your consent, you've signed a blank cheque.
If water, gas, electricity connections, and waste collection aren't explicitly included, the park can charge separately for each.
Your legal rights
The Mobile Homes Act 1983 (as amended by the Mobile Homes Act 2013) provides baseline protections for residential park home owners but does NOT cover most holiday caravan sites. Holiday caravans are typically governed by the Caravan Sites and Control of Development Act 1960 and the Consumer Rights Act 2015, which means terms must be fair and transparent. The Competition and Markets Authority (CMA) has issued guidance on unfair terms in the holiday park sector, and in 2023 pressed several major operators to revise their contracts. Under the CRA 2015 §62, any term that creates a significant imbalance to the consumer's detriment may be deemed unfair and unenforceable.
Questions to ask before you sign
- 1What is the current annual site fee, and what formula or cap governs future increases?
- 2Can I sell my caravan privately, or must I use the park's resale service?
- 3What is the pitch licence term, and what happens when it expires?
- 4Is there an age limit on the caravan, and what are my options when it's reached?
- 5What exactly is included in the annual site fees — utilities, insurance, maintenance?
- 6Can the park rules be changed without my consent, and how will I be notified?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.