A joint statement from the NCC and BH&HPA

The following is a joint statement from the National Caravan Council (NCC) and the British Holiday and Home Parks Association (BH&HPA) in response to a planned broadcast by ITV:

"We are deeply concerned to hear that some holiday caravan owners feel let down by their experience. Matters of consumer trust are taken extremely seriously by our member parks.

"Holiday caravans and lodges are designed as long-term leisure purchases, offering the opportunity to enjoy regular holidays and short breaks over many years on the chosen park. Purchases of holiday caravans and lodges are not a financial investment, and as with many leisure purchases, their resale value is likely to decline over time, particularly in the early years of ownership.

"Prospective buyers are strongly advised to read and understand all contractual documentation, carry out thorough research, and seek independent legal advice before making any commitment to purchase.

"While the cost of ownership has risen in line with inflation and wider cost-of-living pressures, pitch fee increases must always be communicated openly. This means giving reasons, notice of the change and ensuring that the business deals fairly with queries.

"There is a wealth of free guidance available to help consumers to make informed decisions about ownership, including understanding the contractual documentation (purchase and licence agreements, letting arrangements), the associated running costs, annual pitch fees and the resale options.  For more information, please visit:

• www.thencc.org.uk
• www.bhhpa.org.uk

"The British Holiday and Home Parks Association (BH&HPA) and the National Caravan Council (NCC) remain committed to supporting a fair, transparent, and positive experience for all holiday caravan and lodge owners."

The following further background information was also provided:

Pitch fee increases

Over the past five years, the cost of owning a holiday caravan or lodge has risen broadly in line with inflation and wider economic pressures. This rise reflects the significantly higher operating costs faced by many tourism and holiday park businesses. Rising energy costs, higher wages, and increased employer National Insurance contributions have all contributed to higher ongoing ownership expenses.

During the Covid-19 pandemic, many holiday parks passed on government relief measures − such as reduced VAT rates and business rates exemptions − to help stabilise pitch fees. However, the expiry of these temporary measures, coupled with record inflation, led to above-average pitch fee adjustments in subsequent years.

Resale of holiday caravans and lodges

When the time comes to sell, holiday caravan owners typically have three main options:

• Private sale of the holiday caravan on the pitch – often achieving the best financial return, as the unit is sold with the benefit of the remaining licence period.
• Private sale of the holiday caravan off the pitch – where the holiday caravan is sold independently of the park, without the associated licence agreement (contract to occupy) or access to park facilities.
• Trade sale of the holiday caravan back to the park – typically based on an industry-standard trade valuation for the holiday caravan. If resold by the park, the holiday caravan will include a new Licence Agreement (contract) and access to park facilities as part of the new ownership ‘package’, which will increase the resale value beyond the trade holiday caravan price paid to the holiday caravan owner.