When a UK holiday park home owner is hit with severe or unexpected depreciation, there are practical and strategic steps they can take. The key is to move early, document everything, and avoid reactive decisions that can make the position worse.
1. Establish the real cause of the depreciation
Not all depreciation is “normal wear and tear”. Identify what’s actually driving the loss in value:
Common causes include:
- Park operator undercutting resales with brand-new units
- Sudden or repeated pitch fee increases
- Reduced licence length or approaching end-of-term
- Changes to park rules, use restrictions, or season length
- Poor resale demand due to oversupply on the park
- Mandatory upgrade or replacement policies
- Refusal by the park to allow private resale
Action:
- Ask for written confirmation of resale rules and pricing policies
- Request evidence supporting any “market value” statements
2. Review your contract and park rules in detail
Depreciation often stems from contractual clauses owners were not clearly told about at the point of sale.
Look specifically for:
- Resale restrictions or park-controlled resale clauses
- Commission percentages on resale
- Age limits or “removal” clauses
- Terms allowing unilateral rule changes
- Clauses tying value to pitch fee compliance
Red flags:
🚩 Anything that allows the operator to control both supply and resale price
🚩 Clauses that were not clearly explained during the sales process
3. Challenge misleading sales representations
Many owners were told:
- “You’ll always be able to sell it back”
- “They hold their value”
- “It’s an investment / asset”
- “Depreciation is minimal”
- “There’s strong resale demand”
If reality contradicts those assurances:
- Write down exactly what was said, by whom, and when
- Gather brochures, emails, or adverts used during the sale
- Compare sales promises with current resale conditions
- This is often the strongest leverage point for owners.
4. Request a formal explanation from the park operator
- Do not rely on verbal conversations.
- Put the operator on record by asking:
- Why resale prices have collapsed
- Why new units are priced lower than resales
- Why private sales are restricted (if applicable)
- How pitch fees affect resale value
- Whether policies have changed since purchase
This creates a paper trail and often exposes inconsistencies.
5. Avoid panic selling or “park buy-back” offers
Park buy-back offers are frequently:
- Well below any open-market value
- Linked to pressure tactics
- Used to recycle stock at a profit
Before agreeing to anything:
- Get independent advice
- Compare park pricing of new units vs resale offers
- Confirm whether commission, fees, or surrender charges apply
- Once accepted, these offers are often irreversible.
6. Explore whether your situation may be challengeable
Severe depreciation can sometimes be linked to:
- Unfair or misleading sales practices
- One-sided contract terms
- Unreasonable restrictions on resale
- Pressure selling or lack of transparency
- Changes imposed after purchase that damage value
This does not automatically mean “court action”, but it may justify:
- A formal complaint
- Regulatory escalation
- Contract exit discussions
- Compensation or fee challenges in some cases
7. Protect yourself financially in the short term
While you assess next steps:
- Keep detailed records of all communications
- Avoid arrears unless advised otherwise
- If disputing charges, ensure objections are clearly documented
- Do not sign new agreements or upgrades without advice
Many owners make their position worse by agreeing to “temporary” fixes that later become permanent.
8. Get independent, owner-side advice early
Holiday-park depreciation is rarely accidental — it’s often a structural feature of the park’s business model.
Independent advice can help owners:
- Understand whether depreciation is unavoidable or artificial
- Identify leverage points with the operator
- Decide whether exit, challenge, or negotiation is realistic
- Avoid costly mistakes under pressure
Key takeaway
Massive depreciation is not just bad luck.
It is often linked to resale controls, pitch fee pressure, and imbalanced contracts — and owners do have options if they act early and strategically.
You Can Take Our Advice
If you´re wondering if you could take action against your park operator, contact us for a free, no-obligation consultation for a review of your current situation. If we are able to take action, we will.