Campaigners have called on the UK government to take action on the “wild west” holiday park industry, as nearly 2,000 people join a group legal action alleging they have lost thousands of pounds on mis-sold static caravans and unfair pitch fees.
Holiday Park Action Group, which is leading the legal action, says the number of claimants is growing by the day, with people reporting losing their life savings and being forced to sell their homes after losing large sums of money.
The group is claiming compensation from companies that they allege sold caravans for overinflated prices, as well as sites that drastically increased pitch fees, in many cases forcing people to sell up and leave.
Carole Keeble, the group’s founder, said: “Nobody controls this industry. It’s like the wild west, they’re free to do what they like, how they like. People losing their life savings – that is the norm. People have no money left, they can’t believe they’ve lost everything. People that have worked hard all their lives and thought this was going to be a retirement thing for them to just sit and relax, and it’s not, it’s just a relentless financial strain.”
Their group legal action, which is expected to be heard later this year, involves two legal claims – one against “unfair and legally unenforceable” pitch fees, which they claim holiday parks increase at extortionate rates and without proper communication.
The second claim is in relation to buyers who say they bought at a price that far exceeded their caravan’s real value and were not told its value could drop substantially, even in a few years.
Newer caravans, like cars, depreciate more quickly than older models, owing to general wear and tear and the fact design and fittings quickly become outdated. Some sites also have rules that mean caravans have to be removed when they reach a certain age, making them less desirable for new buyers as time goes on.
Many buyers report being forced to sell their unit back to the site owners for a fraction of the price they bought for.
Holiday park lodges and caravans differ from residential park homes in that they cannot legally be lived in year-round, and are designed for short-term, seasonal use.
“It’s like a financial trap; you’re not given all the information on the onset to make an informed decision,” said Keeble.
Sally Nicholls, 70, lost her pension savings and had to sell her home after losing more than £50,000 on a caravan lodge she bought on Tattershall Lakes Country Park, run by Away Resorts, in Lincolnshire in 2020.
She planned to rent it out to holidaymakers, hoping it would generate a small income and help her to partly retire. She used a private loan and her pension pot to buy the lodge, complete with decking and hot tub, for £69,000, and said she got an accountant to check the figures.
Within months, the caravan park started pushing up the price of pitch fees, as well as the cost of the passes guests needed to use on-site facilities, making the venture unfeasible.
Away Resorts said the holiday park industry, like many others, had faced economic challenges, which had led to increased operational costs and the need to increase pitch fees. “We take great pride in our professional approach to holiday home ownership,” they said.
Nicholls said a park pass, which was £80 when she bought her lodge, went up to £200, while pitch fees increased from £4,800 in 2020 to just under £7,000 in 2023, when she decided to sell up.
“It made it tough for me, and the writing was on the wall. Then it hit home that the unit was never worth £69,000 in the beginning – I managed to sell it for £15,000. I had factored in depreciation, I knew it would go down in value, but not that much. I was gobsmacked, absolutely distraught,” she said.
“The salesman said: ‘Why on earth did you think it was worth anything more than that?’”
Keeble claims she was given misleading information when she bought the lodge, but this was always verbal, not in writing, and the salesperson has moved on to another park.
“It has affected me hugely, mentally and physically,” she said. “I lost everything. What was I going to do to live? I’d got no pension pot, so the only thing I could do was sell my home. I had to move 10 miles away from the village I’d lived in since 1975. It really took its toll.”
Hugh Preston KC, who is representing the group, said that although residential mobile homes were regulated, holiday parks were not.
“There’s no set of regulations prescribing what should and shouldn’t happen,” he said. “The issue is if you bought a caravan for £100,000, and after two years you find that you can’t afford pitch fees, then what’s your option? You have to terminate the agreement and sell. But if you’re being offered £20,000 for a caravan you paid £100,000, in reality it’s a bit of a Hobson’s choice.”
Keeble said many of the people who have lost out are “elderly and vulnerable”, and have bought as a retirement investment. They tend to be cash buyers, which the caravan parks prefer.
“No other industry would get away with doing this. People are struggling to keep their heads above water, and an industry this size should not be doing that,” she said.
Nicholls said she had accepted she probably had lost most of her money, but was keen to speak out to “make people aware is so it doesn’t happen to anybody else”.
“The whole industry needs regulation. It’s like they make their own rules,” she said. “It has affected my confidence as a person. I was in managing in education and training so you had to have your wits about you. But now, I’m a quivering wreck.”
A spokesperson for Away Resorts said: “We take great pride in our professional approach to holiday home ownership, ensuring that individuals and families have access to all the necessary information before making a purchase.
“Every prospective buyer receives comprehensive details, including clear terms and conditions, allowing them to make an informed decision with full awareness of both the benefits and responsibilities involved.”
They added that the “holiday park industry, like many others, has faced economic challenges”, such as the pandemic, rising cost of living and adjusted VAT rates, which have led to increased operational costs and the need to adjust owner pitch fees.
“We remain committed to making these increases in accordance with the pitch licence agreement,” they said.
Article by:Source: Jessica Murray Midlands correspondent
