The differences between a Residential Home and a Holiday Home

So, what is the difference between a residential park home and a holiday home?
We are often asked what the differences are between a residential park home and a holiday home so we thought we would explain some of the key differences….

Permanent Residence vs. A Place for Holidays

As a general rule, holiday homes are not built to be permanent residences whereas residential park homes have to be your main residence and come with a right of permanent residence. Residential park homes also must comply with the British Standard BS3632, which ensures that the property is suitable for permanent use and meets all expected standards of a bricks-and-mortar property. It also means that the building is well-insulated with great thermal value, resulting in lower bills as they are often cheaper to heat than a traditional home.

By contrast, holiday homes are solely to be used for recreational reasons – all holiday home owners must have a permanent residential address elsewhere and proof of this must be provided on purchase. Holiday homes are also built to meet existing legislature, adhering to the BSEN1647 regulations, of which the key difference is the standards of insulation. Holiday homes by their nature do not need the same level of insulation as a residential home, they are not designed for permanent living and are best suited to holiday use during the warmer months. In addition, you are not allowed to reside in your holiday home all year-round.

Tax and Rates

Residential park homes are all tax registered, falling under the Mobile Homes Act of 1983 which provides dwellers right of tenure, even if the park changes hands. This means that Council Tax does need to be paid but all residential park homes fall into the lowest Band A, and rates are nominal.

A holiday home won’t be tax registered, the owner must have a registered address elsewhere in the country. Holiday homes are also exempt from Council Tax.

Residential Park Home Living

Prices and Deposits

Costs are generally the key differentiator. Residential park homes will start from around £240,000 whilst a holiday home will be available from £59,983.

When it comes to deposits, £10,000 is needed to secure a residential park home whilst a holiday home sale requires a 10% down payment.


Both residential park homes and holiday homes will incur fees. For residential park homes this is often referred to as ground rent or a pitch fee and is to cover the cost of the park’s electric gates, roads, lighting and maintenance of the communal areas. The ownership agreement terms include the obligation on the part of the resident to pay a pitch fee to the site owner in return for being allowed to keep a park home on the pitch as well as freely using the common areas around the site.


With residential park homes, there is also the need to consider the costs involved for gas, electric, WIFI and a TV license, as you would with any bricks and mortar home.


Holiday homes are subject to ‘site fees’ which is the amount needed to keep your holiday home sited on its pitch at the park for the year – essentially the ground rent for the pitch. Our site fees include the following;

  • Occupation of your plot
  • Park maintenance and landscaping
  • Security
  • Street lighting
  • Refuse collection
  • Water
  • Office administration

Other costs to consider include council rates, insurance, TV licence, electric – metered, gas – metered or bottled, winter drain down and WIFI.

Age Restrictions

It is helpful to be aware that residential park homes may only be purchased by individuals aged 45 plus whilst holiday homes may be bought by anyone over the age of 18.

Wessex Classic Holiday Home


A residential park home is for life. Usually purchased by those looking to downsize and enjoy their retirement, the home is owned for years without the need to upgrade as each home is built to last at least 80 years.

At Avon Estates, holiday home owners have 30 years from new licence meaning they can enjoy their brand-new holiday home for many years. Should they wish, their holiday home can easily be upgraded too.

Selling and Moving On

Once the sale has gone through, Avon Estates’s residential park homes are privately owned by the resident and they can market and sell their property, this is without our involvement.

Holiday home owners may only privately sell their unit if it is not older than 15 years. It would remain on the current pitch with the existing licence inherited by the new owner. The park will need first refusal on all holiday homes and there are very useful guide lines and advice around selling your holiday home which can be found within the licence agreement.



Whether you choose to buy a holiday home or residential park home, at Avon Estates, we guarantee a strong support service. Our Owner Services Team are always on hand to assist with any issue, however big or small. Dogs are welcome in both and whilst no children are permitted to permanently live in a park home, they are certainly welcome to visit and enjoy the occasional sleepover!

View our selection of stunning 2-bedroom residential park homes at Marston Edge and Presthope Grange.

Looking for a holiday home? Then choose from our flagship park, Stratford Parks or opt for a country retreat at Firefly Fields or Wixford Grange.

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