Wet weather during the peak summer weeks failed to put a dampener on the holiday and caravan park markets last year, according to our leading market trends report.
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Despite the poor weather in the height of summer 2015, there were steady improvements in both sales of parks and trading conditions on parks. This was largely down to fine weather in spring and autumn, together with improved economic conditions, says the 26th annual Market Report from our specialist leisure division.
The report reveals particular growth for the residential sector, with strong demand for park home estates in spite of the extra workload imposed by the new regulations flowing from the 2013 Mobile Homes Act.
Chris Tucker, partner in the Exeter office, said: “It’s been another year of steady growth for the market. Most holiday park operators have reported a successful 2015, even if they did face a washout in the peak summer months, and caravan and lodge sales appear to have remained strong – especially at the top end of the market.
“The sunny spring and autumn were clearly beneficial and forward bookings for the main season were boosted by the two recent fine summers in 2013 and 2014. Low inflation, falling fuel prices and an increase in average earnings also helped to support the sector.
Chris adds that the strong uplift in values seen in the residential park sector is due to increased demand for individual homes.
He comments: “There are some extremely positive signs that the sale of new homes in some parts of the country have really taken off this year. This has created a strong demand for vacant pitches spanning the whole market in terms of value; a phenomena we have not seen since the pre-recession boom years. In fact, the average pitch value for residential park homes has risen 6 per cent from £25,000 to £26,500 in the last 12 months.
“This could be a welcome side effect of new legislation, which may have boosted the appeal of residential park living.”
The Market Report also looks at pitch values across the holiday park sectors.
The average value of a static caravan pitch has remained relatively stable at £16,000, although the range between the highest and lowest value achieved has widened considerably compared to last year. In 2015, pitches achieved values of between £9,000 and £30,000.
Although the report shows a slight fall in average touring pitch prices from £8,300 in 2014 to £7,500 in 2015 based on sales in the last 12 months, this is most likely due to a significant number of sales in secondary locations which has adversely affected the average value.
The findings are compiled from our significant activity in the holiday and caravan home markets over the last 12 months, together with all other reliable evidence from the market. Now in its 26th year, the Market Report is widely regarded as the most comprehensive source of analysis from the holiday and caravan home markets.