VAT CHANGE CAUSES DEMAND FOR PRE-OWNED CARAVANS TO SOAR

Demand for the best-quality, pre-owned caravan holiday homes is approaching ‘unsustainable levels’ according to the owner of major Lancashire caravan park.
The two main causes, according to Henry Wild of Moss Wood near Lancaster, are the newly-imposed 5% VAT levy on new holiday caravans and the tendency of owners to hold on to their homes for longer.
‘We are fielding just as many enquiries from prospective buyers as in previous years but there has been a discernible shift in demand recently towards second-hand units,’ said Wild, who is Vice Chairman of the British Holiday & Home Parks Association which has 3,000 UK parks in membership..
‘Many people realise that the VAT change is likely to add a four-figure sum to the cost of a new caravan holiday home so understandably they are casting around instead for a high-quality pre-owned model.
‘This is happening at the same time as many existing owners are postponing a decision to trade-up their holiday home, creating a national dearth of accessible stock.’
The reasons for owners holding fire, he suggests, are economic uncertainty and, in some cases, the problems experienced in obtaining personal finance since the onset of the credit crunch.
Manufacturing output of holiday homes has fallen drastically in recent years, meaning that the current problems are likely to continue for some time yet.

News