Living in a park home: all you need to know

What you need to know about park homes

Before we get onto living in a park home, let's take a brief look at the homes themselves.

Park homes are single-storey dwellings situated on park home development estates. They are constructed on a chassis in a factory and transported in two halves, by two lorries, to a park home development. The two halves are joined together on the park on a concrete base and services (electricity, gas and water) are connected. A brick or uPVC skirt is constructed around the home, bridging the gap between ground level and the base of the home. Brick, or uPVC, entrance steps are constructed.

They are designed to appeal to semi-retired or retired people; almost all park home estates have a restriction on the minimum age at which people can purchase. That commonly starts at the age of 50, with some developments allowing purchasers from the age of 45.

New and older park homes are available to be bought, with one of the main points of difference being their insulation. All park homes are now constructed to a very high standard of insulation but that was not always the case, so if you are contemplating buying an older park home, you may want to consider having its insulation enhanced; there are specialist companies who undertake this work.

The standard to which park homes are constructed is BS 3632, the British Standard which sets out standards of energy efficiency, ventilation, and sound insulation.

With energy efficiency comes energy economy; it is widely acknowledged that park homes cost less to run in terms of heating bills than most bricks and mortar houses. One reason for this is, of course, that single-storey dwellings don’t have an upstairs area, and therefore nowhere for warmed air to escape. The other reason is the high insulation standard to which park homes are built.

How does owning a park home work?

Park home ownership is quite different from ownership of a bricks and mortar home.

Crucially, park home buyers purchase the park home but not the land on which it sits. That is owned by the park home estate owner. Buyers pay an annual or monthly fee (often called ground rent) to the company that owns the development, which can range from £150 to £500 per month depending on how desirable the location is.

The nature of owning the park home but not the land also means that you have the option to choose a plot on a development of your choice before buying a home directly from the manufacturer, allowing you to choose bespoke furnishings and finishes. Of course, can you also buy a pre-installed home from the development itself.

Most park homes are classified as in Band A for council tax; that is the lowest-priced council tax band. The amount you pay will vary from area to area, just as it does in any council tax band for any other type of property.

Given that, as we have detailed, park homes are constructed in the interests of energy efficiency, and they attract the lowest council tax band, the cost of living in a park home is generally lower than in an equivalent bricks and mortar home.

The pros and cons of park homes living

Pros? That’s easy – there are many.

One of the main attractions is that park home residents tend to be of around the same age and stage in life; being retired or semi-retired, they have time to chat and make friends, so park home estates are generally sociable environments.

Community activities take place on some developments. One good example is Warfield Park, Berkshire - here, the Community Association organises events and activities, such as coffee mornings, summer fetes, table tennis, film nights and more. You might expect a garden club, a choir, a craft club or similar groups, too.

Many park home estates are gated communities, so they are a secure environment. They have small gardens, so are easy to care for.

Most park home estates offer buyers the opportunity to purchase a garden shed and almost all have space outside the home.

Cons? There is really only one. That is that park homes tend not to appreciate in value in the same way that bricks and mortar homes do.

A major reason for this is that park homes are purchased fully furnished. When they come onto the market after a time of use, that furniture is effectively secondhand, and secondhand furniture has little value. As a result, the home is worth less than it was when it was purchased new with its lovely new furniture.

Our guide to buying a park home

We have a dedicated page that covers 10 things to consider when buying a park home, but in short, these are some of the things to think about:

First: location. If you are buying a park home for your retirement, this may be your first opportunity to buy a home where you want to live, rather than where work dictates that you live.

That’s very liberating – and exciting. Coast? Countryside? Quiet? Near to a city? Surrounded by walking opportunities? The choice is yours! There are many park home developments in many different locations.

Now look at the park home developments in an area that appeals to you. Some park home developments are owned by major companies; others are owned by individuals or small companies. The major park owner companies’ websites are easy to search for location ideas. Among these are Tingdene Parks, Berkeleyparks and Wyldecrest.

Price is also a major consideration. Park homes cost less to buy than equivalent bricks and mortar homes in any given area. So, in moving to a park home, you may be able to stash a considerable amount of money away; the difference between the money from the sale of your home and the purchase price of your park home.

Another thing to consider when you are contemplating the move is part exchange. Many park home development owners offer a part exchange service, and you can discover more about them in our guide to buying a park home with part exchange. Part exchange schemes take care of solicitors’ fees in many cases, and certainly remove the hassles of selling on the open market, including sales chains collapsing.

You can’t get a mortgage for a park home because you are not going to own the land on which it sits, and the Land Registry secures mortgages on land under the home. Most buyers of park homes finance the purchase from the sale of their previous residence. But if you are looking to go down the finance route, there are specialist companies that offer finance for the purchase of park homes, all of which is covered in our park and holiday home finance guide.

Finally, you need to consider insurance.

There are a number of insurance providers that specialise in park homes. These are the ones to go for because they are knowledgeable about how park homes are constructed, and can source and advise on repair companies that specialise in park homes. Among insurance companies that specialise in park homes are Park Home Assist, Ripe Insurance, Shield Total Insurance, Parksure, Lifesure and Paul Baker Insurance Services. For an in-depth guide to insurance, read our advice article about park home and holiday home insurance.

FAQs: living in a park home

Can you live in a park home all year round?

Yes, you most certainly can. Park home developments are licensed for permanent residency.

Is living in a park home a good idea?

Again, yes it most certainly is. You can reap financial gains in two ways. The first is when you sell your bricks and mortar house and buy a park home, if the park home costs less than the figure for which you sell your house, that’s money in the bank. The second is that park homes cost less to run, in particular to heat, as we have outlined above.

What is the lifespan of a park home?

Park home manufacturer, Stately-Albion, says, “As the oldest manufacturer in Europe, we know that some Stately-Albion park homes built over 50 years ago are still going strong today. As with any home, good maintenance plays a part in helping to ensure long life. Park homes built nowadays use greatly improved materials designed for better performance, durability and minimum maintenance. These modern homes also have the benefit of improved timber treatments, UPVC windows, better roof tiles and exterior render, so there is every reason to suppose they will last even longer than the earlier models.”

What is the difference between a park home and a static caravan?

Park homes are constructed to BS 3632 residential standard and are designed to be lived in permanently. Static caravans are designed for holiday use and are not made to be lived in permanently. Furthermore, park home developments are licensed for permanent occupancy, whereas static caravan sites are licensed for holiday use only.

What happens to a park home when the owner dies?

You can leave a park home to anyone you wish in a will; it is an asset like any other possession.