Static caravan or holiday lodge as a property investment

Written by Nick Grant


Published on 13th June 2018


Last Updated on 27th February 2024


Read time: 4 minutes

line of caravans

Static caravans or holiday lodges are alternatives to traditional brick-and-mortar holiday houses. We provide some advantages of both holiday homes to help you clarify if any of them could be an interesting option as your second home, even in the UK or overseas.

With so many advertisements along the year offering static caravans for sale or holiday lodges for sale some people might consider taking this choice and investing in a second home in the UK or abroad. The NCC is estimated that there are more than 365,000 static caravans and 100,000 static caravan parks in the UK. Just in 2017, the static caravan pitch values rose 12% , a clear perception of the interest for Britons as a property investment.

Thus, the fall in the value of the pound and the incertitude post-Brexit made foreign travel more expensive and UK holiday better value. Although the dream of owning a second home abroad didn’t disappear for Britons, sometimes overseas static caravans or holiday lodges might be more economic than a villa in Spain or France!

There are many advantages to buying a holiday home, either static caravan or holiday lodge. The most important factor of owning a static caravan or holiday lodge is having a second place to call home without “check-ins” and “check-outs” times, although financial reasons are always on the top of the list.

static caravan

Affordable holiday homes

How many days and money per year are you spending on holiday? Are you including short breaks? How much does it typically cost to rent a holiday home in the UK or abroad? Doing the calculations may prove static caravans are financially affordable holiday homes. Even some caravan owners rent out them and manage to cover their ground rent. Others can get a profit from hiring their caravan, because the occupancy rate and location might determine the property investment. And it’s the same with holiday lodges.

Another of the benefits of owning a static caravan is that is not difficult to maintain. Basically to get the most years from a static caravan is keeping external areas (gutters, chassis, panels, roof) clean and ensure turn off gas, electricity, water, and boiler when leaving for a long period of time. Cooler months could affect the conditions of a static caravan. In case of doubt, you can take more advice in our Caravan Maintenance Guide. It might be prudent to pay attention to all these details for avoiding preventable damages in your static caravan and considering getting a static caravan insurance with a high coverage in case of future incidents. Burst pipes were the most common claim in static caravans (47%) , followed by escapes of water (23%) at Intasure this winter.

Furthermore, there is a great flexibility in designs, layouts, and sizes. If you buy new static homes and unless you ask for your own design, they are usually fully furnished with loose and fitted furniture, wall to wall carpets or laminates and appliances (sink, dining room, beds, etc.). They are ready to live in!

Luxury lodge holidays

Unlike static caravans are usually economic (it can cost anything from £5,000 to £100k), some luxury lodges in the UK can cost as much as a villa with pool in Spain, France or Portugal . Maybe location is one of the main reasons when buying a holiday lodge and considering a low or high budget. The most expensive lodges are those with secluded forest location or great sea views. The growth in the number of parks in the UK offering lodges in addition to static caravans is a good example of its demand in the last few years

Holiday lodge

The appearance makes the difference in holiday lodges too. Holiday lodges are usually bigger than a static caravan and generally sited on brick or concrete base. The majority of lodges include a balcony or veranda attached, which increase the value, usable space and time to enjoy there, as for example, in a hot tub. Thus, the exterior gives a more attractive look to the property, instead of aluminium or timber. And indoors, to meet the demand on the market, new holiday lodges offer luxury appliances and furniture which are comparable with the main homes ones.

Both in static caravan or holiday lodges, prior to purchase is fundamental check the terms of a license agreement, to understand the length of time a static caravan or lodge can be sited on the park. This is another important factor that it might help to get some extra money from this property investment. Some parks are provided with great facilities and include the opportunity to put these properties to work and generate an income by letting them out to guests. The more facilities in the park, the more interesting can be for hiring in the future.

*The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.

Nick Grant is a Business Development Manager at Intasure with 10 years of insurance experience.