Park homes are prefabricated dwellings placed permanently on licensed residential parks. Buyers own the structure, but not the land beneath it, under a leasehold-style arrangement. Unlike conventional property, a park home purchase is governed by the Mobile Homes Act 1983, which sets out residents’ rights, pitch fee rules, and sale conditions. This guide explains the legal framework, common financial risks, and practical points buyers need to understand before they commit.
Key takeaways
- You own the structure, but never the land beneath it.
- The Mobile Homes Act 1983 gives residents the right to occupy their pitch for life.
- Site owners take up to 10% commission on every resale, deducted before you receive payment.
- Pitch fees across England and Wales typically range from £150 to £300 per month.
- Standard residential mortgages are unavailable, so most buyers rely on savings or released equity.
- Age restrictions, often 45 or 50 and above, significantly reduce the pool of potential buyers.
- Always verify the site licence and confirm that the site owner holds fit and proper person status.
What You Actually Own When You Buy a Park Home
| You own | You do not own |
|---|---|
| The park home structure itself | The land beneath it |
| The right to occupy the pitch under a licence agreement | A freehold or leasehold interest in land |
| The ability to sell or gift the home without site owner consent | A standard property title that mainstream mortgage lenders accept |
| Statutory protection against termination under the Mobile Homes Act 1983 | Automatic property-style capital growth; the article says park homes typically depreciate |
With a park home, you own the structure but not the land beneath it. You occupy the plot under a licence agreement governed by the Mobile Homes Act 1983. This gives residents the right to occupy their pitch for life, sell or gift the home without the site owner’s consent, and receive protection against termination. The site owner receives a commission of up to 10% on any sale, deducted from the agreed sale price before the seller receives their proceeds.
Mainstream lenders do not fund park home purchases because no land transfers. Buyers typically pay from savings, released equity, or specialist finance arranged through lenders who understand the sector. Unlike bricks-and-mortar property, a park home depreciates over time rather than appreciating, so its resale value will be lower than the original purchase price. This affects long-term financial planning and should be factored in from the outset, particularly when assessing how much capital to commit.
The Legal Framework Governing Park Home Ownership in England and Wales
Pitch fee disputes between residents and site owners now face tighter regulation. In England, the Mobile Homes Act 2013 requires site owners to apply to a residential property tribunal before raising pitch fees outside the agreed review mechanism. Wales operates under the Mobile Homes (Wales) Act 2013, which introduced its own licensing and enforcement framework.
The Mobile Homes Act 1983 still forms the foundation of resident rights, but the 2013 legislation strengthened enforcement considerably. Site owners must hold a local authority licence. Councils can inspect sites and prosecute non-compliant operators. Residents can also challenge unfair pitch fee increases or unlawful eviction notices through a First-tier Tribunal (Property Chamber).
Statute inserts implied terms into every pitch agreement, covering peaceful occupation, communal area maintenance, and termination procedures. No contract can override those terms, and any conflicting clause is void. Prospective buyers should read the existing pitch agreement carefully and confirm that its terms align with what the 1983 Act prescribes.
Costs Beyond the Purchase Price: Site Fees, Commissions and Maintenance
Buyers often underestimate the ongoing costs that follow the purchase. The pitch fee, paid monthly to the site owner, covers the right to keep the home on the land. It also typically includes shared areas, roads, and utilities. Parks across England and Wales commonly charge between £150 and £300 per month depending on location.
The 10% resale commission is a major exit cost. On an £80,000 sale, that is £8,000 paid to the site owner before the seller receives anything. This commission is lawful under the Mobile Homes Act 1983 and cannot be negotiated away.
Owners must fund all maintenance on the structure, chassis, roof, and utility connections. Park homes do not qualify for standard residential mortgages, so these costs must be met from savings or specialist finance. Conventional lending products available when buying property in the UK do not extend to this tenure type.
Homes built before the 1990s may not meet current insulation or structural standards. That can increase heating costs and repair bills. A pre-purchase survey by a specialist familiar with park home construction will give a more accurate picture of likely expenditure than a conventional RICS assessment.
Resale Restrictions, Mortgage Limits and Exit Challenges
- You can occupy the pitch for life under the licence agreement protections described in the article.
- You can sell or gift the home without the site owner's consent.
- Residents have statutory protection against termination and can challenge certain disputes through tribunal routes.
- You own the structure, not the land beneath it.
- Mainstream residential mortgages are generally unavailable.
- Park homes typically depreciate rather than appreciate.
- Resales are restricted by age rules and a lawful 10% commission is deducted on sale.
Park homes cannot be financed with a standard residential mortgage. Lenders class them as non-standard property because you hold a licence, not a freehold or leasehold interest in land. Rates are higher and terms are shorter, so most buyers rely on savings or released equity.
Resale is more restricted. Age rules, typically 45 or 50 and above, narrow the buyer pool, and a 10% commission is deducted on sale. Unlike bricks-and-mortar property, park homes tend to depreciate as the structure ages.
The site owner must approve the incoming buyer as a resident, even though the Mobile Homes Act 1983 grants the right to sell without their consent. If the site is in decline, finding an approved buyer at an acceptable price can take far longer than a conventional sale. Check the site licence conditions and planning permission expiry date before purchasing, because a licence nearing its end reduces both marketability and value.
Key Questions to Ask Before Signing Anything
Get clear answers before you sign the pitch agreement. Ask for the current monthly pitch fee, when it was last reviewed, and which index governs future increases. If a site owner cannot provide a written review mechanism, treat that as a warning sign.
Check that the park holds a valid site licence and that the site owner is a fit and proper person under the Mobile Homes Act 2013. Councils in England hold this information. Confirm whether the park is residential or holiday-use only, because a holiday licence does not permit permanent occupation.
Ask about the minimum age restriction for future buyers, typically 45 or 50, because this affects sale speed and price. Check whether shared infrastructure such as roads, drainage, or utility connections needs near-term replacement. Those costs can pass to residents through fee increases.
Request the written statement the site owner must provide under the Mobile Homes Act 1983. Have a solicitor familiar with park home law review it before you sign. Property Help UK covers the specific legal checks worth completing at this stage. If the site owner discourages independent legal advice or withholds documentation, that tells you something important about how the site is run.
Frequently Asked Questions
What is the difference between a park home, a mobile home and a traditional residential property in the UK?
Under UK law, park homes and mobile homes are the same thing. Both are governed by the Mobile Homes Act 1983, sit on licensed residential parks, and are built to British Standard BS 3632. Traditional residential properties stand on freehold or leasehold land. Park home owners, by contrast, lease the pitch their home stands on.
What legal rights do park home owners have under UK residential park home rules?
In England and Wales, park home owners are protected under the Mobile Homes Act 1983, as amended. Residents have the right to keep their pitch indefinitely, sell their home on the open market, and receive written terms within 28 days of agreeing a sale. Site owners cannot evict residents without a court order.
What ongoing costs should buyers expect when purchasing a park home in the UK?
Plan for site pitch fees as your main recurring cost. These typically range from £150 to £300 per month, depending on location and facilities. The fee usually covers ground rent and communal maintenance. You should also budget for home insurance, utility connections, and an annual park home service charge, which varies by site.
What risks should buyers check before buying a park home on a residential site?
Site licence security should come first. Check the pitch agreement terms, any rent review clauses, and whether the site owner can alter rules unilaterally. Confirm that the site holds a valid residential licence as well. Holiday park licences do not permit year-round occupation and can affect resale value significantly.
Can you get a mortgage for a park home in the UK, and what finance options are available?
Standard residential mortgages do not apply to park homes. Lenders treat them as chattels rather than real property, so buyers usually need specialist hire purchase agreements or personal loans. Some park home manufacturers and dealers also offer in-house finance, though interest rates tend to be higher than conventional mortgage products.