The action is being led by the Holiday Park Action Group (HPAG), which has brought together thousands of holiday-home owners and is seeking compensation in relation to claims involving allegedly unfair pitch-fee increases and the depreciation of holiday caravans. Reporting in 2025 put the number pursuing the legal route at around 2,000–2,500, although the number has changed as the action has progressed.

The claims centre on two principal issues. The first concerns whether certain contractual terms allowing annual pitch fees to increase are fair and legally enforceable. The second relates to whether prospective buyers were adequately informed about the potential for substantial depreciation when purchasing a static caravan or lodge.

The legal action remains ongoing, and these allegations have not been determined by a court. Barrister Hugh Preston KC, who is leading the legal team, describes the ongoing claims as involving alleged unfair terms in holiday caravan park licence agreements and alleged failures to disclose risks associated with holiday-caravan finance and depreciation.

The cost of ownership

For holiday-home owners, the financial commitment extends well beyond the initial purchase price. Pitch fees, utilities, maintenance, park facilities and other charges can all contribute to the ongoing cost of ownership.

One case reported extensively by The Guardian involved Sally Nicholls, who bought a lodge at Tattershall Lakes Country Park in 2020 for £69,000. She said her pitch fees increased from £4,800 in 2020 to almost £7,000 in 2023, while park passes increased from £80 to £200. She subsequently sold the lodge for £15,000.

Away Resorts, the operator of the park, said the industry had faced increased operational costs and that it maintained a professional approach to holiday-home ownership. More broadly, the British Holiday & Home Parks Association has emphasised that holiday caravans are lifestyle purchases rather than financial investments, with their value expected to fall over time.

What does this mean for park operators?

Whatever the eventual outcome of the legal proceedings, the issue highlights the importance of clear communication and realistic expectations when selling holiday homes.

For operators, ensuring prospective buyers understand the full cost of ownership, contractual terms, potential depreciation, resale arrangements and restrictions around occupation can help create greater transparency at the point of purchase.

It also underlines the importance of the relationship between park operators and holiday-home owners. Clear information, accessible contracts and effective communication around changes to fees can all contribute to customer confidence and long-term relationships.

The wider debate around regulation is also likely to remain an important issue for the sector. Holiday caravans occupy a different legal position from residential mobile homes, and the legal action has brought renewed attention to the consumer protections available to holiday-home owners.

As the holiday park industry continues to evolve, maintaining trust will be increasingly important. For operators investing in accommodation, experiences and long-term customer relationships, transparency is not simply a regulatory consideration, it can form an important part of building a sustainable and reputable business.

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