As 2024 comes to a close, there is no doubt it has been another year with lower transaction volumes of parks and a more cautious sentiment, though whilst there have been fewer active buyers in the market strong levels of demand between those buyers has resulted in some notable and sizeable transactions taking place throughout the year. Sanderson Weatherall have been delighted to complete a number of sales, many of which have been transacted confidentially to existing operators.

A lack of parks coming to market has constrained supply as operators adapt to a ‘new normal’ in terms of trade, caravan sales and overheads following the short term spike seen in the post covid period. Perhaps also a muted market sentiment and the absence of some larger corporate operators in the market has led to operators choosing to sit on their hands.

Rising costs have continued as a challenge in 2024 and following the Budget seem likely to remain, with a particular focus around staffing and employment costs.  Holiday letting businesses, in particular, have seen pressures at both ends with increased competition and discounting on letting tariffs and occupancy along with increasing overheads and staffing costs both squeezing the bottom line.

However, contrary to the general trend of rising costs the oversupply of caravans and lodges following the post covid boom has led to many manufacturers now offering significant discounts on caravan and lodge stock. In addition, rising costs can be offset to a degree with inflationary increases passed on to private caravan and residential park home owners through increased annual pitch fees.

Towards the end of 2024 we have seen a strengthening in confidence and market sentiment, though still with underlying caution.  Encouragingly a new equity backed fund entering the market with two substantial acquisitions at the end of 2024 brings positive news and sets the tone where we can expect to see existing private equity and corporate operators return to the market in 2025.