Holiday Lodge Depreciation Explained

Yes. Buyers should generally expect a holiday lodge to be worth less on resale than the price originally paid.

The NCC's consumer guidance tells buyers to think of a holiday caravan or lodge as a long-term lifestyle purchase rather than a property investment and describes it as a depreciating asset.

Parkdean similarly says a holiday home's value depends on factors including its age and condition, location, pitch fees and the current selling market.

The key distinction is that buying a lodge on a holiday park is not the same as buying a house together with the land underneath it. In a typical park arrangement, the buyer owns the lodge itself and occupies a pitch under a separate contractual agreement.

That means the future package offered to another buyer may not be identical to the package you bought.

Key point:

Depreciation is expected. The difficult question is not whether it happens, but how much value may remain when you eventually want to sell.

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No reliable universal rate applies to every holiday lodge.

You will sometimes see figures such as 15% per year quoted online. That number can be useful as a planning assumption, but it should not be presented as a proven national average or a valuation rule.

For example, Victory Leisure Homes discusses an annual figure of around 15% but explicitly says it should be treated as a broad guideline rather than a fixed rule because actual outcomes vary.

The NCC does not publish a universal annual depreciation percentage.

A single percentage cannot capture the difference between:

• a brand-new premium lodge and a ten-year-old pre-owned lodge;
• a long remaining pitch agreement and a short one;
• a sought-after coastal park and a weaker resale market;
• a well-maintained lodge and one needing major work;
• an on-pitch private sale and an off-park trade/removal sale.

Why this matters

If somebody tells you:

"Lodges lose exactly 15% every year."

ask what evidence that figure is based on and whether it applies to the specific lodge, park and resale route you are considering.

Park & Lodge position:

We use 15% only as a rough planning assumption in our public calculator, alongside 10% and 20% sensitivity scenarios. It is not described as an industry standard, prediction or valuation.

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New holiday homes can experience a larger reduction in value during the earlier part of ownership.

Haven tells prospective buyers that depreciation can be particularly significant in the first few years and says market conditions, stock availability and demand can affect the outcome.

There is also a structural reason to be careful when comparing the original purchase price with a later resale price.

A new purchase package may contain more than the physical lodge. It can include items such as:

• siting and connection;
• decking;
• furniture;
• accessories;
• pitch preparation;
• initial sales package costs;
• VAT where applicable;
• promotional benefits.

A future buyer may value those components differently. The park may also sell the lodge with a different agreement or package.

This is why simply treating every pound in the original purchase package as though it follows one perfectly predictable depreciation curve can be misleading.

Do not confuse:

• the physical lodge's value;
• the value of the pitch/agreement package;
• the amount a park will offer as a trade or buy-back figure;
• the amount a private buyer might pay on pitch.

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There is no complete universal list, but the following factors can materially affect resale.

Age and condition

An older lodge will usually be compared with newer stock on the same park or nearby parks.

Maintenance, damp, chassis condition, roof, windows, cladding, appliances and interior condition can all influence a buyer's willingness to pay.

Park and location

Demand can differ significantly between parks and regions.

A desirable pitch, coastal location or quieter premium park may support stronger buyer demand, but that still does not create a guaranteed future price.

Site fees

Parkdean explicitly lists pitch fees among the factors affecting holiday home value.

That makes commercial sense. A future buyer is not deciding only whether they like the lodge. They are also deciding whether they want to inherit the annual cost of keeping it on that park.

A lodge with a £10,000 annual site fee may face a different resale market from an otherwise similar lodge with a £5,000 fee.

Holiday Lodge Site Fees Explained

Remaining agreement term

The remaining pitch/licence period can matter enormously.

The NCC's model agreement, for example, treats the agreement as running for a defined period. Its private-sale provisions contemplate a future buyer receiving the unexpired balance rather than automatically receiving a brand-new full term.

That model is not a universal rule, but it illustrates why you need to understand what a future buyer actually receives.

A lodge that looks attractive today may be harder to sell later if only a short period remains.

Park rules and buyer approval

A resale may be subject to:

• park first refusal;
• buyer approval;
• age/condition standards;
• safety checks;
• transfer procedures.

These can affect how easy the lodge is to sell.

The market when you sell

Parkdean explicitly identifies the current selling market as a factor.

Demand, available new stock, competing used stock and economic conditions can all change.

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One of the biggest mistakes is assuming there is one single "resale value".

The NCC and the former BH&HPA describe three broad exit routes:

1. sell to the park;
2. sell privately with the lodge remaining on its pitch;
3. sell privately off the park.

These can produce very different outcomes.

Private sale on pitch

The buyer may receive the lodge together with the benefit of the remaining pitch agreement.

The NCC/BH&HPA joint statement says this route will often achieve the best financial return because the lodge is being sold with the benefit of the remaining licence period.

But check:

• whether private sale is permitted;
• the park's first-refusal process;
• the transfer deduction or commission;
• VAT;
• buyer approval;
• what agreement term the purchaser receives;
• any required repairs or certificates.

Sell to the park

A park buy-back may be quicker or simpler, but it may be based on a trade value rather than the price the park will later advertise to another consumer.

The joint NCC/BH&HPA statement explains that a park's trade purchase and its later retail package are different because the resale package may include a new licence agreement and access to the park.

Never assume:

"The park is advertising similar lodges at £50,000, so it will pay me £50,000."

Sell off the park

The lodge is then separated from the pitch and park package.

Removal, disconnection, transport and crane costs may apply. The buyer may also be comparing the unit on a very different basis.

Key point:

A meaningful resale estimate should specify the assumed exit route.

Selling a Holiday Lodge: Resale Fees & Exit Costs

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Yes, but not in a way that justifies inventing a separate universal rate.

If you buy a pre-owned lodge, your financial starting point should normally be what you are paying now, not what the first owner paid when it was new.

Some depreciation has already happened before your purchase.

That does not automatically make a used lodge better value. You still need to consider:

• age and physical condition;
• remaining agreement term;
• warranty;
• site fee;
• park rules;
• resale restrictions;
• maintenance;
• what competing stock is available.

A lower purchase price can materially reduce the amount of capital exposed to future depreciation, but only if the rest of the deal remains workable.

Example:

A well-priced pre-owned lodge with a healthy remaining term may be financially more attractive than a heavily discounted new lodge carrying high annual fees or poor exit terms.

That is a commercial comparison, not a rule that used is always better.

Depreciation is economically important, but it must not be counted twice.

Suppose:

• Purchase price: £100,000
• Assumed gross resale after ten years: £20,000

The modelled reduction from purchase price is:

£80,000

But you do not then calculate:

£100,000 purchase + £80,000 depreciation

That would count the same loss twice.

A cleaner way to think about ownership cost is:

Money paid during ownership minus net money recovered when you leave

So the calculation can include:

• purchase price;
• site fees;
• utilities/insurance/maintenance;
• finance costs where relevant;
• selling/transfer deductions;
• removal/exit costs;
• minus net resale proceeds.

The depreciation is visible through the difference between the purchase price and assumed resale value.

True Cost of Lodge Ownership Calculator

Our public calculator does not pretend to predict the future selling price of a specific lodge.

It gives you transparent planning scenarios.

For a £100,000 purchase held for ten years, a reducing-balance calculation produces:

These figures are mathematical sensitivity scenarios, not forecasts or market bounds.

The calculator defaults to 15% only as a rough planning assumption because that figure is commonly cited in industry-facing guidance. You can choose 10%, 20%, enter a custom rate or override the model with your own gross resale estimate.

Why reducing balance?

A reducing-balance model applies the percentage to the remaining modelled value rather than subtracting the same cash amount each year.

For example:

A 15% assumption on £100,000 gives:

• Year 1: £85,000
• Year 2: £72,250
• Year 3: about £61,400

It does not subtract £15,000 every year until the value becomes negative.

Again, this is a mathematical model, not a valuation methodology.

Calculate your ownership cost

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Before committing, ask:

1. How long is the agreement for this exact lodge and pitch?
2. What term would a future private buyer receive?
3. Can I sell privately on the pitch?
4. Does the park get first refusal?
5. What resale/transfer deduction applies and is VAT additional?
6. What happens if I sell off the park?
7. What are the removal/disconnection costs or charging method?
8. Is park buy-back guaranteed, discretionary or unavailable?
9. How is a park buy-back figure calculated?
10. What is the current site fee and how can it increase?
11. Is there a maximum unit age or condition rule?
12. What happens at the end of the agreement?

A salesperson telling you that the lodge "holds its value well" is not enough. Ask for the contractual exit position and make your own affordability decision using conservative assumptions.

See What We Check

No.

That would be the wrong conclusion.

A car depreciates and people still buy cars because the use has value to them. Holiday lodge ownership can provide regular holidays, convenience, familiarity and time with family and friends.

The question is whether the experience is worth the likely financial cost to you.

Haven openly frames holiday ownership in similar terms, describing it as a lifestyle choice rather than a straightforward financial investment.

The problem is not depreciation itself.

The problem is buying without understanding:

• what you are paying;
• what annual ownership may cost;
• how long the agreement lasts;
• how you can sell;
• what the park can deduct;
• what may remain when you leave.

A buyer who understands those numbers can make a rational lifestyle decision.

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