Calculating the Cost of Owning a Static Caravan on a UK Holiday Park
With the future of international travel still uncertain, the demand for static caravans in UK Holiday Parks has never been greater. But how much does it cost to own a static caravan on a UK Holiday Park? Is it the right choice for your family? In this complete guide, we’ll explain everything you need to know.
The Great British Holiday Revival
As we emerge from the Coronavirus pandemic, we’re witnessing a revival of the Great British Holiday, and if you are thinking about investing in a holiday home in the United Kingdom, now is the perfect time to capitalise on what could be the best purchase of your life.
It’s the ultimate lifestyle investment for couples and families who are looking to Staycation at home but, there’s more to it than the initial sales price. There are ongoing costs to keep your caravan in a holiday park, so you need to do your homework and some financial calculations before you sign on the dotted line.
How Much Do Static Caravans Cost UK?
Much like any property, the sales price of a static caravan in the UK can vary enormously depending on size, location, and how old it is. New static caravans start at around £30,000 and go up to £250,000 plus, while smaller second-hand static caravans start at the £10,000 mark, so there is something for everyone. You’ll find a great choice available at myholidaycaravan.co.uk.
Newer caravans in prime holiday park locations generate more rental income than older models in less-popular parks, so this is something to consider when choosing the right static caravan for your family. If you intend to rent it out when you are not using it, it may make financial sense to invest in a larger model to maximise your returns during peak travel periods.
Most caravan sales require a deposit of at least 25 per cent, but this varies from company to company. You may get a discount for a cash purchase, although finance options are generally available for those looking to invest in holiday ownership in the UK.
Static Caravan Holiday Park Site Fees UK
All UK holiday parks charge annual site fees, otherwise referred to as park fees, to cover costs such as ground rental, park maintenance, landscaping, staff wages, security, and use of facilities. Much like the price of your static caravan, the cost of site fees varies greatly from park to park, with annual fees costing more in ‘high demand’ areas where availability is often limited.
So how much are caravan running costs in the UK? Here are some starting prices listed by leading static caravan parks in the country:
•Haven Holiday Parks Site Fees: from £2,945 per year
•Parkdean Resorts Site Fees: from £2,334 per year
•Park Holidays Site Fees: from £3,245 per year
•Aria Resorts Site Fees: from £3,000 per year
•Verdant Leisure Site Fees: from £2,595 per year
You will receive a full breakdown of annual running costs when you view your static caravan. Many resorts allow you to pay holiday park site fees monthly, although you may get a discount if you pay everything in advance.
In addition to annual park fees, there are other expenses to consider, such as utilities and insurance, as we’ve outlined below.
Utilities: Gas & Electricity
The beauty of owning a static caravan in the UK is that you are not liable for stamp duty or council tax, but there are other costs to pay. Much like bricks and mortar holiday homes, you will receive bills for gas and electricity charges for your static caravan, so you should bear this in mind when calculating your monthly outgoings against any potential rental income.
While your caravan utility bills will vary from location to location and season to season, you should estimate between £400 and £800 per year.
Water & Rates
As a static caravan owner, you will also have water charges and rates to pay each year. This will be a percentage of the rates levied on your holiday park by the local authority. Again, this amount varies from park to park, so allow £300 to £600 per year when making your calculations.
It makes sense to protect your investment with caravan insurance, especially if you intend to rent it out to earn extra income to go towards your annual site fees and utility bills. Many insurance companies offer specialist caravan insurance and holiday home insurance plans, with costs depending on factors such as the size and age of your second home and the level of cover required.
Some UK static caravan parks stipulate that you must have insurance, and many offer affordable plans with varying levels of cover.
Ask For A Complete Breakdown Of Costs
One of the easiest ways to budget for your holiday home in the UK is by asking for a complete breakdown of costs from the holiday park or an independent static caravan retailer. You can also ask other caravan owners during your site inspection.
Renting Out Your Static Caravan To Cover The Costs
Buying a static caravan in the UK should be seen as a lifestyle investment rather than a money-making opportunity. Although it is possible to cover some or most of your annual costs by renting it out to others, particularly during peak travel periods such as school holidays.
Most UK holiday parks allow sub-letting, and some even offer to do this on your behalf, and so it is possible to get a return on your investment, but it all depends on how much precious holiday time you are willing to give away to others.
If you are not restricted to travel during school breaks and peak travel periods such as Easter and Christmas, then you could potentially cover all your annual costs by renting your static caravan out. It’s an investment that keeps on giving, and in a world where international travel is anything but assured, it makes sense to holiday at home in a static caravan that you can call your own.