The demand for static caravan holiday homes is on the rise in the UK and, if you are thinking about investing in one for your future holidays, now is the perfect time to buy. Staycations are this year’s big holiday trend and, with the pandemic set to curb our international travel plans for the foreseeable future, it makes sense to invest in a holiday home closer to home.
Buying a static caravan is much like buying a family home when it comes to planning, with pricing, location, size, accessibility, age, and ongoing maintenance costs being the most important things to consider.
In this comprehensive guide to buying a static caravan holiday home in the UK, we’ll provide you with a checklist to help you compile a detailed plan for what could be the best lifestyle investment you are ever likely to make.
Location, Location, Location
The next step in buying a static caravan is choosing the perfect holiday park for your second home. There are hundreds of them dotted across the UK, with options ranging from luxurious beachside escapes on the Cornish coastline to remote woodland retreats in the Scottish highlands.
The location you choose will have a huge impact on how you use your holiday home, and so it is not something to consider lightly. You could spend your weekends and summers there for 20 years or more, so ask yourself the following questions when making a holiday park shortlist:
• Is it easily accessible from home?
• Can you drive there in 1 – 3 hours (or within a timeframe acceptable to you)?
• Will you be visiting friends and family in the area, that is a key reason to visit for many owners?
• Is there an abundance of activities you are passionate about and places of interest to keep you coming back?
• Is it accessible via public transport (this may be important if you intend to rent it out)?
• Does it have the onsite facilities that you are looking for?
• Does it have caravans within your price range?
• Is it a family-friendly park or a quiet rural retreat?
• Does it have beach access?
• Is it pet-friendly?
• Does it have reliable internet access (essential for home working)?
Everyone’s checklist will be different, but by answering the above questions, you’ll be able to focus your search on holiday parks that meet your needs and save time by avoiding those that do not.
Determine Your Budget
Before you start shopping for your dream holiday home, you need to set a realistic budget. The cost to buy a static caravan in the UK varies depending on how big it is, how old it is, the make and model. The value will also depend on the holiday parks location and its popularity as well as the location of the pitch on the park and the length of the pitch licence agreement detailing how long the caravan can be sited on the park.
You can buy a used caravan for as little as £10,000, although averages range from £25,000 to £50,000. Brand-new luxury lodges offer double the space and high specification, however in prime locations they can cost £500,000 and more, so there is something to suit everyone.
Here are some budgeting questions for your detailed plan:
• What is the maximum I can afford to invest (to purchase or deposit contribution)?
• How much can I afford to spend on finance payments, annual site fees, utilities, and insurance?
•How much can I earn from renting out my caravan to assist with running costs?
Set your budget and complete your research online before arranging site visits to avoid disappointment, and bear in mind that rental income will only cover a percentage of your annual fees.
New Or Second Hand?
Do you see yourself buying a new or second-hand static caravan? Budget will play a role in your overall decision, but if you have the funds to buy a new caravan, should you still consider buying a second-hand one? The answer to that is ‘yes’.
While there are many benefits of buying a new static caravan, such as extended warranties, lower maintenance costs, longer life and modern furnishings, a second-hand one will hold its resale value better suffering less depreciation. They may also come with expenses upgrades such as a decking that were optioned by the first buyer from new. It will also give you more holiday home for your money and the option to upgrade at a later stage whilst getting a feel for ownership.
Used static caravans may also be available to move into immediately compared to a new unit that may have to be ordered from the manufacture creating a delay.
So, it is worth weighing up your options and adding the following questions to your caravan purchase plan:
• Am I willing to compromise on size and specification to have a new caravan?
• Should I buy a used (bigger) static caravan and spend the difference on upgrades?
• Is it worth buying a new caravan when it will instantly lose resale value (like a car)?
• Will a used caravan make my preferred holiday park more affordable?
Your answers to the above questions will help you decide if you should look at brand-new models or browse the many second-hand caravans available. It is worth remembering that holiday homeowners are obliged to keep their static caravans in good condition, and you could get the size, quality and location you are looking for at a discounted price by going down the used caravan route.
Armed with your detailed location & caravan purchase plan, you’ll bypass the many mistakes that first-time buyers make and stay one step ahead of the pandemic-fuelled competition. A UK holiday home may transform the way you work and spend your free time for good, and the timing to buy has never been better!
How Often Will You Be Able To Use It?
How often will you be able to use your static caravan? Weekly? Monthly? Twice per year? To capitalise on your investment, you should be able to use it as often as possible, with some owners suggesting that you should use it at least ten times per year to make it a viable holiday option. Of course, you don’t have to use it yourself; you can give it to friends and family, or even rent it out to cover some of your annual fees. But the whole concept of this type of holiday home is that you use it regularly for weekend breaks, family holidays, or even as your out-of-office office.
Most UK caravan parks are open 8 – 10 months per year, although some operate all year-round which extends your available time, and whilst you cannot live in a static caravan permanently as your primary residence, you can visit it as often as time allows and take extended holidays such as during the summer school holidays. Choosing the right location is essential. If you can access your static caravan in just 1 or 2 hours, you are far more likely to use it than if it is at the other end of the country, so consider this when browsing holiday parks.
Will You Be Able To Share It With Family & Friends Or Rent It Out?
One of the benefits of owning a static caravan is that you can share it with family, friends, loved ones, or even work colleagues when you are not using it. It allows smaller families and support-bubbles to holiday together, couples to escape with their friends and endless opportunities for last-minute breaks. Much of your essentials will already be at the caravan so packing should be a breeze.
If you have a large family and friends’ network, a caravan holiday home could be a perfect investment. If not, you should consider the option of renting it out when you are not using it, either independently or via your holiday park’s rental scheme, to ensure maximum financial returns to offset your running costs.
Many parks will manage the rental processes in return for a commission on the rental charges or you can choose to do this yourself. From our experience managing bookings, key handovers and cleaning can be intensive so consider these options carefully based on your own circumstance.
Also remember subletting reduces your own time using the caravan and can lead to increased wear and tear.
Is It Affordable?
Perhaps the biggest consideration of all is affordability. Most of us love the idea of buying a caravan or holiday home in the UK, but they come at a price, and if you cannot commit to the ongoing running costs, it might not be the right choice for you. When budgeting for a static caravan, you should consider:
• Initial Sales Price: This can be anywhere from £10,000 to £500,000 plus depending on the size and location of your caravan. This can be paid in full from savings or alternatively many owners choose to pay a deposit and then finance the purchase cost paying a monthly payment.
• Annual Site Fees: These range from £2,000 to £10,000 per year, with averages around £3,000 to £5,000. Some parks offer the option to pay side fees via a monthly payment. This payment covers the fee to use the pitch, maintenance and free use of parks facilities for your family and guests.
• Gas & Electricity: Most holiday parks work on meter systems, so you’ll only pay for what you use, but if you intend to stay in your static caravan in winter or over the Christmas and New Year period, you will inevitably have higher heating costs. You will also have to factor in a annual boiler service.
• Rates, Water & Drainage: Influenced by the size, facilities, and location of the holiday park, these fees range between £300 and £1,500 per year.
• Caravan Insurance: Just like your home, you’ll need to insure your static caravan against risks such as fire, theft, and flood damage; this is essential and required by all UK holiday parks. Fully comprehensive caravan insurance packages range from £125 to £475 per year.
• Cleaning: This is an optional service offered by most caravan parks and costs around £25 per clean.
• Winterisation: This is an annual service designed to keep your static caravan in perfect condition throughout winter when your holiday park may close. It includes draining down the water system and reconnecting, and other essential maintenance. Some insurance companies insist you do this, others don’t, so check your policy carefully. It costs around £70 per year.
Have You Weighed Up The Pros & Cons?
Static caravans are a luxury lifestyle investment that allows you to escape everyday life without the hassle of overseas travel. They are suitable for young families, older couples, and everyone in between, and they are ideal for those who love to get away at the weekends and take impromptu trips. But they are not for everyone.
Take time to consider the pros and cons and the advantages and disadvantages of buying a holiday home in the UK before you commit. If you can afford it, use it regularly, and see a future of holidays for you and your loved ones, caravan ownership will add value to your life. If not, explore all options available before committing, and only sign on the dotted line if you are sure that it is the right choice for you.