Tackling the Cost of Living by Moving to a Park Home
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Posted: May 18, 2023
The cost-of-living crisis reared its ugly head towards the end of 2022, and while 2023 is now well and truly underway, it’s continuing to wreak havoc across the country.
In response to this difficult economic situation, UK residents are looking to reduce their expenditure more than ever before. This includes extreme measures, such as downsizing their homes for more affordable spaces that are cheaper to heat.
Due to the reduced size of park homes, a number of people have been considering whether relocating to a residential park is the right move amid the current climate. With that said, what are the costs of owning a static caravan compared to a bricks-and-mortar home?
One aspect that remains the same as with a bricks-and-mortar home is that there will be both upfront payments and monthly payments. The upfront payments are those that will need to be paid right at the start of the buying process.
The Cost of the Home Itself
The most significant of your upfront payments will be the cost of the home itself. Unlike with a bricks-and-mortar home, it’s not possible to get a mortgage on a park home. Typically speaking, buyers will use the money acquired from selling their previous homes. Despite this, there are other finance options available.
The upfront cost of a park home will be dependent primarily on size and location. For instance, our current most expensive brand-new park home is valued at £381,500. In contrast, our current most affordable pre-owned park home costs £130,000. Therefore, the affordability of purchasing a park home will depend on taking size and location into account.
If you opt for a brand-new home that needs to be sited, you’ll be required to pay for a plot deposit. The cost of the plot will depend on its location and the home itself. When buying a second-hand home that’s already been sited, though, this plot deposit won’t be required. This is unless you wish to move the home to a new site, as a deposit will be required to do such.
While it’s not legally required to have a park home surveyed ahead of purchase, it’s always recommended. This is because a survey will inform you of the exact condition of the home you’re purchasing. This is especially handy for second-hand homes, as it allows you to factor any required work into your budget.
When buying or selling property, you usually require a solicitor to conduct the legal work. The cost of this will depend on your selected solicitor, so it’s worth shopping around for the best deal.
You might be able to avoid moving fees if you’re able to transport all your belongings yourself.
While the upfront payments may seem like a lot, the reduced monthly payments tend to make up for this. Not only will you not have a mortgage to pay, but there are a number of factors that will decrease your monthly outgoings. So, how much does it cost to run a static caravan?
As you would with a bricks-and-mortar home, you’re required to pay your utility bills, including electricity, gas, and water. Each of these is charged by the site, and OFGEM guarantees that residents won’t be charged more than the market rate. While it won’t be possible to choose your own supplier, you’ll never be charged above the market rate.
So, all these bills will be sorted for you, but you’ll be required to set up your TV licence and Wi-Fi yourself. You can learn more about the process of setting up your internet here.
Typically speaking, your utility costs will be cheaper than what you’ve been paying in a bricks-and-mortar home. This is predominantly down to the fact that a smaller space won’t cost as much to heat.
One additional set of fees for living on a residential park is the pitch fees. This covers the rent of the land, the use of the facilities, and the site maintenance. While the home will be yours, you’ll be required to rent the land that it’s sited on from the park. Each site will have a different cost; however, it tends to be less than £200 per month.
Like brick-and-mortar homes, you’re required to pay council tax when living in a park home. Fortunately, though, park homes are always charged at Band A, which is the cheapest available. The exact price of this will vary from council to council, but it’s likely cheaper than what you paid in your previous home.
So, is it more affordable to live in a park home?
As a rule of thumb, it will be more affordable to live in a park home than a bricks-and-mortar home. However, this will vary from home to home and park to park, meaning it’s important to do your research and plan your finances accurately.
If moving to a residential park sounds like a viable option for you amid the current climate, please don’t hesitate to get in touch. We will be more than happy to discuss the different fees and help you decide whether this is the right move for you.