New Surge of Claims Arising from the Holiday Park Ownership Model
Legal Insights from M1 Law: Addressing Holiday Park Home Ownership Claims
Specialist Legal Support for Holiday Park Home Owners
At M1 Law, we have developed a deep specialism in advising and representing clients who have encountered legal challenges within the UK holiday park home ownership sector. Over recent years, we have witnessed a marked increase in claims emerging from this area—an area that, while often packaged as a lifestyle investment, is rife with contractual ambiguities, mis-selling practices, and notable consumer protection concerns. Drawing from our experience, we set out below the primary legal dimensions of these claims, and how our firm supports individuals seeking redress or clarity.
Overview of Holiday Park Home Ownership: Our Perspective
Across the UK, holiday park sites market static caravans and lodges as semi-permanent holiday homes—frequently positioning them as attractive lifestyle choices or even as investments with the promise of financial return. Typically, purchasers enter into agreements with park operators, granting a right to locate a caravan or lodge on park land for a defined term, subject to substantial ongoing site fees and maintenance charges. Although these arrangements are not traditional freehold or leasehold property ownerships, they closely mimic such structures and are governed by contracts that are often highly complex and, in our experience, not always in the client's favour.
Misrepresentation and Consumer Protection: M1 Law’s Approach
A significant proportion of the cases we handle at M1 Law concern misrepresentation at the point of sale. Many clients come to us having relied on false or misleading statements from park operators—be it inflated projections about resale value, unfounded claims about rental income, or assurances regarding long-term security of tenure.
Our legal team regularly utilises the protections afforded by the Misrepresentation Act 1967, which enables consumers who have relied on a false statement of fact to seek rescission of the contract or claim for damages. In addition, we draw on the Digital Markets, Competition and Consumers Protection from Unfair Trading Regulations Act 2024 (as well as earlier legislation such as the 2008 Regulations), which specifically prohibit misleading commercial practices. These protections empower us to pursue claims on behalf of former owners who allege they were misled, particularly in relation to the ease of resale or subletting their holiday home, the true duration of their pitch licence, or the reality of recurring annual costs.
Unfair Contract Terms: Identifying and Challenging
Another frequent basis for action involves unfair terms within consumer contracts—a key area of expertise at M1 Law. The Consumer Rights Act 2015 (CRA) sets the legal standard for fairness in contracts between traders and consumers. We have encountered numerous contracts containing terms that, in our view, create a significant imbalance at the consumer’s expense. Such terms may be deemed legally unenforceable.
Common examples in holiday park home contracts include clauses that grant park operators sweeping powers—such as the ability to increase site fees at their discretion, relocate homes within the park, or terminate agreements with little notice. Other problematic provisions relate to restrictive resale conditions or onerous requirements for ownership transfer, which can drastically impact the marketability and underlying value of the holiday home.
M1 Law: Advocates for Holiday Park Home Owners
Our clients often come to us feeling frustrated and powerless, having entered into agreements that do not match the promises or expectations set at the outset. At M1 Law, we are committed to providing robust legal advice, challenging unfair practices, and ensuring that consumers’ rights are protected. Whether through negotiation, complaint, or litigation, our firm stands ready to hold park operators to account and help clients achieve the redress they deserve.
If you believe you have been misled or treated unfairly in relation to a holiday park home purchase, we encourage you to contact M1 Law for a confidential, no-obligation consultation. Our specialist solicitors are here to guide you through the complexities and assert your rights every step of the way.
The UK park home ownership model, while offering the allure of a lifestyle investment, has become an increasingly contentious area from a legal standpoint. The growing claims industry around park home ownerships reflects rising concerns over mis-selling, contractual ambiguity, and consumer protection. We explore the legal dimensions of these claims, focusing on misrepresentation, unfair contract terms, regulatory oversight, and the implications for both consumers and operators.
Overview of Park Home Ownership
Park Home sitesacross the UK market static caravans and lodges as semi-permanent holiday homes, often promoting them as lifestyle choices with potential financial returns. Purchasers typically enter into agreements with park operators granting them the right to site a caravan or lodge on park land for a specified term, subject to ongoing site fees and maintenance charges. While not freehold or leasehold in the traditional sense, these arrangements often mimic property ownership and are governed by complex contractual terms.
Misrepresentation and the Role of Consumer Protection Laws
One of the most prevalent legal issues that we come across in park home ownership arises from misrepresentation—when purchasers are induced into contracts by false or misleading statements. These might include overstated resale values, misleading claims about rental income potential, or assurances about the long-term security of tenure.
Under the Misrepresentation Act 1967, if a consumer can prove that they relied on a false statement of fact made by the seller or park operator, they may be entitled to rescission of the contract or damages. Furthermore, the Digital Markets, Competition and Consumers Act 2024 (DMCCA) prohibits misleading actions and omissions that cause or are likely to cause the average consumer to take a transactional decision they would not have otherwise taken.
These protections have underpinned many of the legal claims that M1 Law is making on behalf of former owners, who allege they were misled at the point of sale, particularly regarding the ease of resale or subletting, the duration of their pitch licence, and annual running costs.
Unfair Contract Terms
Another cornerstone of legal claims in this sector concerns unfair terms in consumer contracts. The Consumer Rights Act 2015 (CRA) governs the fairness of terms in contracts between traders and consumers. Terms that create a significant imbalance in the parties’ rights and obligations to the detriment of the consumer may be deemed unfair and, therefore, unenforceable.
Park home contracts often include clauses that give park operators unilateral powers—for example, to increase site fees arbitrarily, to relocate homes within the park, or to terminate agreements with minimal notice. Some agreements impose restrictive resale terms or conditions on transfers of ownership, which may effectively erode the marketability of the holiday home and undermine its value.
The Office of Fair Trading (OFT), prior to being subsumed by the Competition and Markets Authority (CMA), issued guidance highlighting concerns about such practices. The CMA continues to monitor these issues and has issued compliance advice to holiday park operators, reminding them of their obligations to avoid misleading marketing and to ensure fair contract terms.
Regulatory Oversight and Enforcement
While there is no dedicated ombudsman for park home ownership, several regulatory bodies have indirect oversight. The CMA can investigate systemic breaches of consumer law, while Trading Standards may intervene at a local level in response to individual complaints. However, the fragmented nature of regulation has led to calls for stronger oversight and clearer redress mechanisms.
The National Caravan Council (NCC) provides a voluntary code of practice for its member parks and dealers, aiming to raise industry standards. However, membership is not mandatory, and enforcement mechanisms are limited, reducing the effectiveness of self-regulation.
Striving for Change
The UK park home ownership model remains legally intricate and fraught with risk for consumers. The growing body of claims underscores systemic issues in how these products are sold and managed. Misrepresentation, unfair contract terms, and inadequate regulatory oversight are all fertile grounds for litigation and compensation claims. While legal frameworks such as the Misrepresentation Act, the DMCCA, and the CRA provide important protections, enforcement remains fragmented.
For the industry to thrive ethically, there is a pressing need for clearer legal standards, robust enforcement, and greater transparency in sales practices. The claims industry will likely continue to grow until these systemic issues are addressed comprehensively.