Understanding Park Home Ownership: Key Rules and Regulations
Park home ownership differs significantly from traditional property ownership, governed by specific legislation that protects both residents and site owners. Unlike when buying a conventional house, you don’t own the land beneath your residential park home—instead, you purchase the home itself and rent the pitch it sits on. The Mobile Homes Act 1983 (as amended) is the primary legislation that outlines your rights as a park home owner, including security of tenure, the right to sell your home, and protection against unfair pitch fee increases. For those seeking a community-focused lifestyle, particularly for the over-50s, understanding these regulations is essential before investing in a residential park home.
Key Takeaways:
- Park home owners purchase their homes but rent the land underneath
- The Mobile Homes Act provides important legal protections for residents
- Site fees (pitch fees) are regulated with specific rules for increases
- When selling a park home, the site owner is entitled to up to 10% commission
- Residential park homes must be your main residence, unlike holiday homes
- Age restrictions typically apply (50+ years) on residential parks
- Choosing a reputable operator like Arden Parks provides security and peace of mind
Understanding park home ownership: Key rules and regulations
Residential park home ownership operates under a unique legal framework that’s quite different from traditional property ownership. When you buy a park home, you’re purchasing the structure itself, but not the land it stands on. Instead, you rent the pitch from the park operator through a legal agreement.
| What you own | What you don’t own |
|---|---|
| The park home structure | The land/pitch underneath |
| Fixtures and fittings | Communal areas of the park |
| Any approved additions to your home | Park facilities and infrastructure |
The primary legislation governing park homes is the Mobile Homes Act 1983 (as amended), which provides the legal foundation for your rights and responsibilities. This Act has been updated several times, most recently by the Mobile Homes Act 2013, which strengthened protections for park home residents.
Some key regulations to understand include:
- Park homes must comply with British Standard BS3632, ensuring they meet specific construction and safety standards
- Most residential parks have age restrictions, typically requiring residents to be 50 years or older
- Park homes must be your only or main residence – you cannot rent them out or use them as holiday homes
- Site licences specify the requirements park operators must follow, including spacing between homes, fire safety, and utilities
- Written statements must be provided that outline your rights and responsibilities as a park home owner
At Leedons Residential Park, we ensure all our operations comply with the latest regulations, providing our residents with peace of mind about their rights and protections under the law.
What are the legal rights of park home owners?
As a park home owner, you have significant legal protections under the Mobile Homes Act. These rights ensure your security and peace of mind while living in your residential park home.
Your Key Legal Rights at a Glance
- Security of tenure – You have the right to live in your park home and on your pitch for as long as you wish, provided you don’t breach your agreement
- The right to sell your home on the open market without interference from the site owner
- Protection from eviction except in very specific circumstances defined by law
- The right to gift or bequeath your home to family members
- The right to receive a written statement outlining the terms of your agreement
- The right to form residents’ associations
- Protection against unfair pitch fee reviews
These rights apply differently depending on when you purchased your home. The 2013 amendments to the Mobile Homes Act particularly strengthened the selling process, removing the park owner’s right to approve buyers, though they can still ensure buyers meet park rules such as age restrictions.
We at Arden Parks strongly support these legal protections and work closely with our residents to ensure they fully understand their rights and receive the protections they’re entitled to under the law.
How do site fees and charges work for park homes?
Site fees (also called pitch fees) are the regular payments you make to the park owner for the right to keep your residential park home on their land. Unlike traditional homes, these ongoing costs are an important factor to consider when budgeting for park home living.
| Expense Type | Details | Frequency |
|---|---|---|
| Site/Pitch Fees | Broadway Park: £193.77 Leedons Residential Park: £246.58 | Monthly |
| Utilities | Water, electricity, gas (where available) | Monthly/Quarterly |
| Council Tax | Most park homes are in Band A | Monthly/Annual |
| Home Insurance | Specialised park home insurance recommended | Annual |
| Maintenance | Regular upkeep of your park home | As needed |
Site fee increases are regulated by law and can only happen once a year. The site owner must give you at least 28 days’ notice using a specific form. Increases are typically linked to the Consumer Price Index (CPI), though other factors may be considered such as improvements to the park.
What your site fees cover:
- The use of the pitch
- Maintenance of communal areas, gardens, and roads
- Street lighting
- Security features
- Access to park facilities
It’s worth noting that when purchasing a new park home through Arden Parks, the sited price includes connections to mains services, a driveway for two cars, groundwork including skirting, steps and a path around the home, and a garden shed (6×8).
What should you know before buying a residential park home?
Before investing in a residential park home, there are several important factors you should carefully consider to ensure you’re making the right choice for your future.
First, verify the park’s site licence. This official document issued by the local authority confirms the park is legally permitted to have residential homes. Ask to see the licence and check it’s current and allows for permanent, year-round occupation.
Park Considerations
- Location and accessibility to local amenities
- Park rules and any age restrictions (typically 50+)
- Site fees and how they’ve changed over recent years
- The reputation and history of the park operator
- Available facilities and their condition
- The community atmosphere and other residents
Documentation Checklist
- A copy of the site licence
- The written statement (pitch agreement)
- Park rules
- Details of any charges or fees
- BS3632 compliance certificate
- Manufacturer’s warranty documents
For the home itself, ensure it complies with British Standard BS3632 and comes with proper warranty protection. New homes at Arden Parks come with a manufacturer’s warranty and 10-year Gold Shield/Platinum Seal structure cover.
Unlike traditional property purchases, you won’t need a mortgage (as they’re not typically available for park homes), won’t pay stamp duty, and won’t necessarily need a solicitor, though independent legal advice can be valuable.
How does selling or bequeathing a park home work?
Selling a residential park home follows a specific legal process that differs from selling a traditional property. As the seller, you have the right to sell your home on the open market without needing approval from the site owner, though there are important steps to follow.
The Park Home Selling Process
- Provide the buyer with a “Buyer’s Information Form” containing all required documentation at least 28 days before completion (unless a shorter period is agreed in writing)
- Notify the site owner of the proposed sale
- Complete an “Assignment Form” that transfers your rights and responsibilities to the buyer
- The buyer submits a “Notice of Assignment” to the site owner
- The buyer pays 90% of the price to the seller and 10% commission directly to the site owner
One significant difference when selling a park home is that the site owner is entitled to a commission of up to 10% of the sale price. The buyer typically pays 90% of the price to the seller, then pays the remaining 10% directly to the site owner.
| Process | Selling a Park Home | Selling a Traditional Home |
|---|---|---|
| Commission | 10% to park owner (mandatory) | 1-2% to estate agent (optional) |
| Legal requirements | Assignment form and specific documentation | Conveyancing and title transfer |
| Buyer approval | Buyer must meet park rules (e.g., age restrictions) | No restrictions on buyer eligibility |
| Stamp duty | Not applicable | Applicable above certain thresholds |
For bequeathing a park home, you can leave your home to a family member or another beneficiary in your will. The beneficiary will need to meet any park rules (such as minimum age requirements) to live in the home. If they don’t meet these requirements or don’t wish to live there, they can sell the home following the normal process.
It’s worth noting that if you’re considering selling your park home, the demand for quality residential park homes continues to grow, particularly in desirable locations like our parks in the Worcestershire countryside.
What are the differences between holiday and residential park homes?
Holiday park homes and residential park homes may look similar, but they operate under entirely different legal frameworks and serve very different purposes.
| Feature | Residential Park Homes | Holiday Park Homes |
|---|---|---|
| Legal status | Protected by the Mobile Homes Act | Governed by contract law only |
| Occupancy | Year-round, must be your main residence | Seasonal, cannot be your main residence |
| Council tax | Payable (typically Band A) | Not applicable (business rates paid by park) |
| Construction standards | BS3632 residential standard | EN1647 holiday standard (less insulation) |
| Postal address | Yes, can register to vote | No official postal address |
| Mortgage availability | Specialised loans available | Holiday home financing options |
| Rental options | Not permitted | Often permitted |
The most important distinction is that residential park homes are designed and legally designated as permanent, year-round homes. You can only live in a holiday park home for a limited period each year (typically 10-11 months), and it cannot be your main residence.
Residential park homes at Arden Parks come with a residential site licence provided for permanent living all year round. They’re built to higher specifications with better insulation, often featuring central heating and more substantial construction to withstand year-round occupancy.
Leedons Residential Park Facilities
Indoor heated swimming pool
Outdoor bowling green
Community hall
Games room
Tennis court
Laundrette
Dog walk and countryside walks
If you’re considering park home living, it’s essential to be clear about whether you’re looking for a permanent residence or a holiday home, as the legal rights, costs, and limitations differ significantly.
Key takeaways: Navigating park home ownership with confidence
Understanding the rules and regulations of park home ownership helps you make informed decisions and enjoy the many benefits this lifestyle offers. Here’s what to remember:
- Park home ownership offers a unique blend of property ownership and community living, particularly suited to those 50 and over
- The Mobile Homes Act provides substantial legal protections for residential park home owners
- Site fees and charges are regulated, with strict rules about how and when they can be increased
- When buying, ensure you receive all required documentation and understand the park’s rules and licence status
- Selling a park home involves a specific legal process, including a commission payment to the site owner
- Residential park homes differ significantly from holiday homes in terms of legal status, construction standards, and permitted usage
At Arden Parks, we’ve been in the industry since the 1930s and operating parks since the 1980s. Our experience as a third-generation family business means we understand how to create and maintain high-quality residential parks that our residents are proud to call home.
When you choose one of our parks, you’re not just buying a home – you’re joining a well-established community with excellent facilities in the beautiful Worcestershire countryside. With our manager and resident staff available year-round, we’re committed to ensuring your park home ownership experience is positive and hassle-free.
For those considering this lifestyle change, we invite you to visit Leedons Residential Park to experience firsthand the quality and community that makes park home living so special.
