Buying a Holiday Caravan vs. a Park Home: Key Legal Differences

Are you considering buying a holiday caravan or a park home? Understanding the legal differences between these two options is essential before making a purchase. This guide explains the key distinctions, including ownership rights, legal protections, costs, and resale rules.

1. Legal Classification & Usage Rights

Holiday Caravan

  • Designed for leisure use only, not full-time living.
  • You buy a license agreement to keep the caravan on-site for a fixed period.
  • Most parks require proof of a separate permanent address.

Park Home

  • A residential property protected under the Mobile Homes Act 1983.
  • Suitable for full-time living, often within retirement communities.
  • The park owner cannot legally evict you without a valid reason.

2. Legal Protections & Agreements

Holiday Caravan

  • Not protected under the Mobile Homes Act.
  • The site owner controls the terms of your agreement.
  • Renewal of your pitch agreement is at the discretion of the park owner.

Park Home

  • Protected under the Mobile Homes Act 1983, ensuring long-term security.
  • You can sell the home without park owner interference.
  • The park owner cannot force you to leave without legal grounds.

3. Ownership, Costs & Fees

Holiday Caravan

  • You own the caravan, but not the land it sits on.
  • Must pay annual site fees, which can increase over time.
  • Depreciates in value, similar to a vehicle.

Park Home

  • You own the home, but lease the land through a pitch agreement.
  • Council tax applies (usually Band A).
  • Holds value better than a holiday caravan.

4. Resale & Inheritance Rights

Holiday Caravan

  • The park owner may have first refusal or charge a commission.
  • If your license agreement ends, you may have to remove the caravan at your cost.

Park Home

  • Can be inherited by family members.
  • The park owner can only charge up to 10% commission on resale.

5. Planning Permissions & Council Regulations

Holiday Caravan

  • Located on parks with holiday-use only planning permission.
  • May require you to vacate for a set period annually.
  • No council tax, but subject to park regulations.

Park Home

  • Must be on a residentially licensed site for full-time occupation.
  • Residents must pay council tax and have full residential rights.

Which Is Right for You?

  • Choose a holiday caravan if you want a seasonal getaway with lower costs but fewer legal protections.
  • Choose a park home if you need permanent residence with stronger legal rights and long-term security.

Need Help Choosing?

If you’re unsure which option suits you best, please contact us and we’d be happy to go through this with you.

📞 01772 682494

📩 info@mowbreckpark.co.uk