Inside the hidden cost of owning a caravan

Buying a caravan might seem like a smart investment if you're hoping to make money by renting it out to holidaymakers. 

Charging families hundreds of pounds to stay at one of Britain's tranquil holiday parks, buyers envision raking in thousands every year through their mobile home. 

But after a string of owners fell victim to extortionate pitch fees, maintenance costs, declining property value and 'dodgy sales tactics' by site bosses - losing their life savings as a result - experts have warned of the little known costs that come with buying a static caravan. 

There is no regulating body for holiday parks, and experts warned that many siting agreements have not been tested by the law. 

MailOnline takes a look at just how expensive it really is to own a mobile home at a UK holiday resort. 

The upfront cost of buying a mobile home is the first thing prospective buyers have to consider. 

Prices for a Haven caravan start at around £14,995 for a pre-owned model and £29,995 for a new one at various sites across the UK. 

According to the company's website, prospective buyers can secure their holiday home with an up-front deposit of 10 per cent of the caravan's finance. New holiday homes are available from £449.75 per month subject to terms and conditions. 

Haven caravan owners have access to all park facilities, as as well as exclusive owner events and party nights; 15% off bars, restaurants and shops; half-price leisure activities and 10 friends and family cards. 

Haven also gives a two-year warranty on pre-owned caravans and five years on new ones. 

And, if someone should decide a caravan is not right for them, there's a 30-day money-back guarantee.

But what other costs are involved?

Businessman Andrew Goodwill, who is in the process of selling three caravans in Devon, told MailOnline about the hidden costs every buyer should be aware of. 

1. Pitch fee 

When purchasing a mobile home through a caravan park company, buyers are commonly required to pay an initial fee - known as a 'pitch fee'. 

Mr Goodwill, who has owned caravans for 16 years, explained that the fee is decided by the company and is for the keeping of your home on the their site. 

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2. Insurance 

Caravan owners are not allowed to keep a caravan without it being fully insured, which can cost thousands. 

3. Gas and electricity 

When owning a caravan on a holiday park site, you are commonly required to go through the company for utilities and are not allowed to buy your own, Mr Goodwill explained. 

The businessman claimed that this allows the company to buy gas and electricity themselves, before charging you more for a profit. 

4. Cleaning fees 

Much like gas and electricity charges, site companies sometimes insist that cleaning services are organised through them, so they can charge you more and make a profit. 

One caravan owner, Fred, told MailOnline that buying a mobile home without considering the extra costs is a 'very expensive mistake' for buyers. 

'If you own one on a holiday site [...] you have extortionate site fees plus electricity, gas, water, cable, yearly electric and gas checks, landlords insurance, cleaning.' 

Fred said the fees cost him £10,000 a year - not including the cost of buying the caravan, which will inevitably decrease in value and lose you money. 

5. Maintenance - especially flooring 

Mr Goodwill explained that the biggest issue to consider when maintaining a static caravan is flooring. 

Usually made out of wood, the flooring reportedly gives way after around 10 years, and costs as much as £6,000 to replace.

6. Letting your caravan through the site

Many sites require you to rent your caravan through them, so they can make a profit. 

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Mr Goodwill claimed a site can take as much as 78 per cent of your rental profits, describing the entire process as 'restrictive' to the buyer. 

He told MailOnline: 'When you buy a caravan from a site, you are under a siting agreement. 

'A lot of these siting agreements I don't think they've ever been tested in law, and I think a lot of them would be found to be lacking. The reason I say that is because they're restrictive.'

He added: 'The whole caravan park industry needs looking at. People are being ripped off left, right and centre. 

'You should never buy a static caravan as a financial decision; it will just lose you money. 

'We're not talking of hundreds of pounds people lose - it's thousands.' 

7. Selling your caravan

'If I sell my caravan, I have to offer my caravan to the site first,' said Mr Goodwill. 

The businessman said that if he decides to sell a caravan to a private buyer - without offering to the site first - he has to offer the site 20 per cent of his profit.

Alternatively, many despairing buyers told MailOnline they lost tens of thousands of pounds when selling their caravan back to the site owner, due to the property's depleting value. 

Some even claimed that after buying back the caravan for a significantly reduced price, the company then went on to sell it again for much more. 

Lisa Webb, Which? Consumer Law Expert, told MailOnline: 'We've previously found that dodgy sales tactics are rife in the caravan park industry, and we've heard of countless people who have said they were misled about the terms of their purchase, and have ended up thousands of pounds out of pocket as a result.

'Buying a holiday home or caravan should be an exciting time, but as with any large purchase, it's crucial you take the time to do your research. 

'If something sounds too good to be true it usually is, so interrogate any spurious claims like promises of guaranteed rental income from your property, or promises that a holiday home can be resided in full time. 

'You should also be aware that caravans will usually decline in value after purchase.

'Before signing on the dotted line, make sure you fully understand your contract, including any additional fees you may be expected to pay.'

Cash house buying company Property Saviour told MailOnline they had been inundated with calls from distraught caravan owners. 

Saddat Abid, CEO of Property Saviour, said: 'We're seeing a surge in panicked caravan owners desperate to sell up after being hit with eye-watering hidden fees and charges they never saw coming. Many feel completely trapped.'

Mr Abid warned that owning a a static caravan or lodge can quickly turn into a financial black hole, with owners facing a barrage of unexpected costs.

'One poor chap told us he's forking out over £5,000 a year just in site fees - that's before he's paid a penny towards actually using the caravan. It's daylight robbery,' Mr Abid said. 

'We've had retired couples in tears on the phone, saying they sank their life savings into what they thought would be their dream holiday home. Now they're drowning in debt just trying to keep up with all the charges.'

Two of the most shocking cases he has come across were of a widow who was hit with a £10,000 bill for 'park improvements' she never agreed to and a family who were charged £500 just for permission to sell their caravan.

Mr Abid  advised anyone considering buying a static caravan or lodge to scrutinise the small print and factor in all potential costs before signing on the dotted line and urged them to get independent legal advice.

'Ask to see a full breakdown of fees for the past 5 years. Find out exactly what you're liable for and whether charges can increase. And always get independent legal advice,' Mr Abid stressed.

The property guru said retirement village leases often carry similar pitfalls, with eye-watering service charges and 'event fees' that can slash the value of your home.

'We had one lady discover she'd have to pay 30% of her property's value to the park when she sold up. That's nearly £100,000 on a £300,000 retirement flat - it's obscene,' he revealed.

Mr Abid warned: 'These park home companies often target retirees with glossy brochures promising an idyllic lifestyle. The reality can be very different once you're locked into a lease with a rapidly depreciating asset.

'He advised anyone considering buying a park home to think very carefully: 'Factor in the true cost over 10 years, including site fees, maintenance, and depreciation. For most people, it's financial madness.

'The property guru stressed that traditional bricks and mortar homes are almost always a better investment: 'A normal house will likely increase in value over time. A park home is guaranteed to lose money - it's that simple.'

Mr Abid concluded: 'Park homes can offer a nice lifestyle for a few years, but as an investment they're an absolute disaster. Do your sums carefully or you could end up trapped in a very expensive mistake.'

Are holiday parks regulated?

According to Which?, there isn't one regulating body for holiday parks, although some are signed up with either the National Caravan Council (NCC), or the British Holiday & Home Parks Association (BH&HPA). 

A spokesperson from BH&HPA told Which?: 'Many people choose to buy a holiday caravan every year, but as with any major purchase, it's really important that buyers fully understand the Licence Agreement they are signing.

'At the British Holiday & Home Parks Association, we provide our member parks with model agreements, written in plain English, which uphold the principles of fairness and transparency.

'These clearly set out things like the cost of annual pitch fees and when they are reviewed, whether sub-letting to other holiday guests is permitted, the transfer fee payable to the park if the holiday caravan is sold and the procedure for addressing any customer concerns.