Park Homes and Residential Caravans: Pitch Fees and Council Tax 2026/27

What Is a Park Home?

A park home is a permanently sited, purpose-built residential mobile home intended for full-time, year-round living. Unlike a static caravan on a holiday park (which is typically subject to seasonal occupancy restrictions and cannot usually be used as a main residence), a park home is legally recognised as a person's principal home when sited on a residential park that has the correct planning permission for permanent occupation.

Park homes are popular among retirees and downsizers because they typically cost significantly less to buy than an equivalent bricks-and-mortar property, while offering single-storey living, a managed community environment, and often attractive locations. However, the legal and financial structure of park home ownership is fundamentally different from owning a house, and these differences affect council tax, financing, resale, and long-term security of tenure.

The Mobile Homes Act 1983

The primary legislation governing the relationship between park home residents and site owners in England and Wales is the Mobile Homes Act 1983 (as significantly amended, particularly by the Mobile Homes Act 2013 for England). This Act sets out:

• The terms of the pitch agreement between resident and site owner
• The process for reviewing and increasing pitch fees
• Rules on selling or gifting a park home
• Procedures for terminating a pitch agreement or closing a site
• A written statement that site owners must give to each new resident, setting out their rights and the site rules

Separate but broadly similar protections exist in Scotland under different legislation. The Act does not give residents ownership of the land -- it regulates the licence relationship and protects residents from unfair site owner behaviour, which was historically a significant problem in the sector before reform.

Pitch Fees Explained

The pitch fee is the amount a resident pays to the site owner for the right to keep their home on a specific pitch and to access shared site infrastructure -- roads, communal grounds, site security, and general upkeep. It is broadly analogous to a ground rent or service charge, though the legal framework is distinct from either.

What the pitch fee typically covers:

• Use of the plot itself
• Maintenance of shared site infrastructure and communal areas
• Site management costs

What the pitch fee does NOT cover:

• Council tax on the home (paid separately to the local authority)
• Gas, electricity, water and other utilities (usually metered and billed separately, sometimes via the site owner as an intermediary)
• Buildings and contents insurance for the home itself
• Repairs and maintenance of the home itself, which remains the resident's responsibility as owner

Pitch fee reviews

Pitch fees are typically reviewed annually. Under the standard formula, increases are usually linked to the Consumer Prices Index (CPI), replacing the older link to the Retail Prices Index (RPI) following reforms designed to make increases fairer and more predictable for residents. A site owner wanting an increase above the CPI-linked figure generally needs to justify this with reference to specific, verifiable costs (such as approved site improvements), and can apply to the First-tier Tribunal (Property Chamber) if agreement cannot be reached with residents.

Council Tax on Park Homes

Park homes used as a main residence are liable for council tax in the same way as any conventional dwelling. In England, each park home is individually assessed and placed into a council tax band (A to H) by the Valuation Office Agency, based broadly on the value the home would have commanded at the relevant valuation date, similarly to how houses and flats are banded.

Because park homes are generally lower in value than houses, they are frequently banded towards the lower end of the scale (commonly Band A), though this depends on the specific park, location, and home. The resident (not the site owner) is responsible for paying council tax directly to the local authority, and standard reliefs apply in the same way as for any other property:

• The 25% single person discount for sole occupants
• Disability-related reductions where the home has been adapted
• Council Tax Reduction (previously Council Tax Benefit) for residents on a low income, means-tested in the normal way
• Full exemptions in specific circumstances (for example, if the home is unoccupied and the resident has moved into care)

Council tax is entirely separate from the pitch fee. A resident receives two distinct bills: one from the site owner for the pitch fee, and one from the local council for council tax.

The 10% Commission Cap on Resale

One of the most significant reforms affecting park home residents relates to what happens when a resident wants to sell their home to a new occupier who will keep it on the same pitch. Historically, site owners could charge very high commissions on such sales, effectively trapping residents into low resale values or making it difficult to move.

Under the current framework, when a park home is sold to a buyer who will occupy the same pitch, the site owner is entitled to commission capped at 10% of the agreed sale price. This cap, reinforced through the Pitch Fee Review reform process, is designed to give residents a fairer share of the value of their home when they come to sell, and to prevent site owners from using an inflated commission to deter residents from selling on the open market at a fair price.

Residents are also generally free to sell to a buyer of their choosing, subject to the new occupier meeting any age or other eligibility restrictions that apply to the site (many parks are restricted to residents aged 45 or 50 and over, for example).

Financing and Ownership Differences from Bricks-and-Mortar Property

The most important legal distinction is that a park home owner typically owns the home as a chattel (a moveable item of personal property) but does not own the land beneath it. This has several practical consequences:

• No freehold or leasehold interest in land, only a licence (the pitch agreement) to keep the home on the site
• Standard residential mortgages are generally unavailable, because lenders secure mortgages against real property (land and buildings), not chattels; specialist park home finance exists but on different terms
• Park homes typically depreciate over time, similarly to a large vehicle or manufactured structure, rather than appreciating in the way land and buildings usually do over the long term
• Security of tenure depends on the Mobile Homes Act protections rather than standard landlord and tenant or freehold property law
• Site closure risk: while the Act requires proper notice and, in many circumstances, compensation, residents do not have the same permanence of tenure as a freeholder of a house

These differences mean the lower purchase price of a park home needs to be weighed against ongoing pitch fees, limited capital growth, financing constraints, and the resale commission, when comparing the true lifetime cost against conventional home ownership.

Sources

• gov.uk: Park homes: Mobile Homes Act guidance
• gov.uk: Council Tax bands and rates
• gov.uk: Pitch fees and the Mobile Homes Act 1983
• Valuation Office Agency: Council Tax banding