This year marks a significant moment for the sector and for Savills: a chance to reflect on how far leisure and trading based property has evolved, and where it is heading next.
What was in the early 2000s as a landscape shaped by golf courses, caravan parks and emerging rural diversification has grown into one of the UK’s most dynamic and resilient real estate sectors. The market today is defined by broad consumer expectations, sophisticated investors, and operators who are reinventing what leisure experiences can look like – whether through high quality lodge developments, innovative multiuse destinations, or increasingly sustainable ways to enjoy the countryside. Across the industry, we continue to see strong demand for experiences that balance quality, wellbeing and value. Staycations remain a powerful driver of domestic tourism, while the growth of experiential leisure and the revival of outdoor recreation have reshaped investment patterns. At the same time, operators and landowners are navigating new expectations around environmental performance, biodiversity, and carbon conscious development – trends now firmly embedded in portfolio strategy and planning policy.
ian simpson
Head of Department
In our Spring/Summer 2026 edition, our specialists explore the forces shaping leisure and trading: the evolving economics of holiday and residential parks, the impacts of policy shifts, what’s next for marinas and children’s day nurseries, and how sustainability is redefining the future of leisure led development. As always, our aim is to provide insight, data driven analysis and practical guidance for investors, operators and landowners navigating this fastmoving landscape. Thank you for joining us. We hope this edition informs, inspires, and sets the tone for another ambitious year across our sectors.
+ 44 (0) 207 409 8060 + 44 (0) 7967 555 478
isimpson@savills.com
Spring / Summer 2026
Welcome to the Spring/summer 2026 edition of Aspects of Leisure and Trading
contents
ASPECTS OF LEISURE AND TRADING
Savills 2026
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Copyright © 2026 — Savills
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Residential parks
Marinas
Ratings
Planning
Day nurseries
Holiday parks
Contents
Welcome
25 years of Aspects of Leisure and Trading
contact us
Explore this edition
Refined living, rising demand – the refreshed appeal of residential home parks
The UK’s residential home park market is undergoing a period of transformation, with the sector generating increasing interest from institutional investors.
Six trends shaping the future of marinas
In an ever-evolving marina market, what challenges and opportunities are on the horizon for in-land and coastal operators?
spring/summer 2026
Navigating lease structures and investments in children’s day nurseries
Children's day nurseries
An overview of market dynamics, investor appetite and the importance of lease structures in this flourishing sector.
Why UK holiday parks are poised for growth
With short domestic breaks and flexible leisure options now a well-established trend, 2026 is set to be a promising year for the sector.
The benefits of central facilities buildings for holiday parks
With their revenue-boosting potential and year-round appeal, central facilities buildings represent a transformative opportunity for holiday parks.
A recap of the complex 2025 Autumn Budget
Rating
Following November’s Budget announcements, we revisit the changes set to impact business rates over the next three years.
A Generation Game
Aspects of leisure and trading
CONTENTS
EXPLORE CONTENTS
holiday parks
welcome
Why UK holiday and residential parks are poised for growth
With short domestic breaks now a well-established trend and the rising popularity of community-based senior living, 2026 is set to be a promising year for the sector.
After several turbulent years shaped by inflationary pressures, shifting consumer behaviours, and post pandemic volatility, the UK holiday and residential parks sector enters 2026 with renewed confidence and a clearer path to steady growth. Deal volumes in 2025 doubled year-on-year, driven largely by established operators and a notable lack of competition from external investors, creating a fertile environment for strategic acquisitions and portfolio expansion. The resurgence has been supported by easing inflation and a Bank of England base rate of 3.75%, which has significantly improved funding conditions and encouraged capital to return to operational real estate. Despite a brief slowdown following uncertainty surrounding the 2025 Autumn Budget, sentiment rebounded quickly, with operators and investors closing out the year on a much stronger footing. The renewed alignment between buyer and seller expectations marks a shift away from the pricing volatility of the past two years, signalling a more mature and stabilised market environment heading into 2026. Much of this confidence stems from the sector’s underlying resilience. Consumer preferences continue to favour short domestic breaks, cost-conscious staycations, and flexible leisure options – behaviours that intensified during the pandemic and have since become enduring lifestyle choices. Residential parks, meanwhile, benefit from long-term demographic trends, particularly the growing demand for community oriented senior living. Together, these forces underpin a steady base of recurring income and support the sector’s ability to withstand broader economic challenges.
"Deal volumes for UK holiday and residential parks in 2025 doubled year-on-year"
An oversupply of thousands of caravans in the manufacturing pipeline has continued to weigh on sales margins. However, operational revenues have remained resilient, particularly in prime coastal and countryside locations, where affluent buyers prioritise quality and experience over price sensitivity.
Operational trends from 2025 reveal a sector adapting to both opportunity and complexity. Shorter, more frequent domestic breaks dominated the holiday letting market, prompting operators to invest in mobile-friendly booking systems, dynamic pricing strategies, and more flexible operating models. This shift requires more intensive management but also increases annualised hire fleet income, improving the performance of well-run parks.
Cost pressures, however, remain a central challenge. Wage inflation continues, with the National Living Wage rising to £12.71 in April 2026, and higher operating expenses putting pressure on margins across the industry. Operators are increasingly turning to technology, automation and energy saving measures – such as LED lighting, smart metering and hybrid staffing models – to manage costs while maintaining guest experience.
Maintaining operational revenue
Touring parks averaged
per pitch in 2025
£10,833
while top-tier assets achieved values closer to £20,000
Static holiday parks value corrected to
in 2025
£32,190
after a peak of over £42,000 in 2023
Residential parks rebounded strongly to
£40,547
Pitch values across the sector have settled into a new equilibrium after a period of post-pandemic adjustment. The average pitch value at touring parks reflected a normalisation of demand and a continued shift towards higher value static units, while static holiday parks now sit just below pre-pandemic levels at a figure widely accepted as sustainable. After a softer 2024, residential parks demonstrate renewed confidence and persistent demand from the senior living market.
Sustainability and low carbon infrastructure have emerged as defining themes for the sector’s next phase of growth. With over one million electric vehicles now on UK roads, holidaymakers increasingly expect reliable EV charging. Operators willing to invest in EV charging infrastructure, solar generation, battery storage and low carbon heating technologies are positioning themselves at the forefront of eco-conscious hospitality.
For rural parks facing grid limitations, hybrid renewable systems and innovative energy management solutions are enabling cost-effective progress. These investments not only meet guest expectations but also enhance asset value through strengthened ESG credentials – a growing factor in both corporate acquisitions and lender assessments.
Investing in eco-conscious infrastructure
Adapting to new regulations
Regulatory changes scheduled for 2026 and 2027 are also set to reshape the investment landscape. A significant development is the new business rates list introduced in April 2026, accompanied by permanently lower multipliers for retail, hospitality and leisure businesses. A new large property supplement of 2.8p will apply to parks with rateable values above £500,000, affecting larger or more facility-intensive parks.
The new duty to notify is also expected to influence park operations and transactions. From April 2026, ratepayers must notify the Valuation Office Agency of any physical property changes within 60 days, with substantial penalties for noncompliance. This change will require operators and investors to adopt more rigorous asset management and reporting practices.
Planning policy continues to evolve as well. England’s 60-day permitted development right for temporary campsites – introduced in 2024 – offers new revenue opportunities for landowners, while Wales and Scotland remain at 28 days but are actively considering alignment. Park homes also remain exempt from the Community Infrastructure Levy (CIL), although misapplication by some local authorities persists, highlighting the importance of specialist advice during planning and development.
The strong performance of the UK holiday and residential park market in 2025 has carried through into early 2026. With stabilised pricing, renewed investor confidence and a growing focus on sustainability, the sector continues to demonstrate an attractive balance of defensive characteristics and strategic growth potential. Yet geopolitical developments in the Middle East may introduce some uncertainty for 2026. It remains unclear whether these events will place additional pressure on consumer spending – already challenged by the rising cost of living – or if the opposite effect will emerge, with more households opting for domestic staycations as a safer, more predictable alternative to overseas travel.
2026: a moment of promise
For investors seeking resilient, income‑generating operational real estate, 2026 holds opportunity and a timely point to engage with a sector that is firmly back in forward motion.
CHILDREN'S Day nurseries
Richard Prestwich
Director, Leisure and Trading
+ 44 (0) 1244 702 053 + 44 (0) 7825 239 097
rprestwich@savills.com
The children’s day nursery sector continues to experience significant change, driven by market consolidation, shifts in tenure strategy, evolving lease structures and consistent investor interest.
Despite broader economic pressures, the sector remains resilient, highly regulated, and underpinned by strong, stable demand. Both operators and investors have needed to adapt quickly – balancing operational pressures with opportunities for growth and long-term value creation.
The growth of national groups
Between 2019 and 2025, several national providers grew substantially, demonstrating the continued appetite for scale within the market. Although large portfolio transactions have slowed in the past two years, consolidation continues through smaller acquisitions – typically clusters of three to eight nurseries. There is a shift towards more strategic, targeted growth over rapid, largescale rollups. Operators with well-defined estate strategies are increasingly prioritising cluster-building, operational collaboration and brand consolidation, helping support efficient staffing, economies of scale, and stronger local networks.
While many of the largest national groups remain predominantly leasehold, regional markets show a more balanced split between freehold and leasehold assets. Freeholds provide long-term security and capital value, whereas leasehold settings enable operators to expand quickly without the capital intensity associated with property acquisition.
Investors, too, increasingly favour diversified exposure to help mitigate risk across different economic cycles. As the sector matures, estate management is becoming far more intentional, with tenure decisions used strategically to strengthen resilience, futureproof the business, and enhance overall value.
A strategic approach to tenures
Lease structures are now emerging as one of the most critical factors influencing both operational sustainability and investment performance
Long leaseholds – typically 125 years or more – tend to feature lower rental gearing and RPI-Iinked reviews, making them relatively stable over time. By contrast, operational leaseholds of 20 to 30 years often carry higher rental gearing and may involve open-market rent reviews or index-linked mechanisms. More recently, new leases are moving towards index-linked reviews (RPI or CPI), reflecting a mutual desire from landlords and tenants for predictability and future alignment. As operational cost pressures build and margins tighten, including caps and collars in indexed reviews has become essential. High inflation in recent years highlighted the risks of uncapped indexation, where rents rose faster than revenue, placing severe pressure on operators and, in some cases, threatening business viability.
Steady investment appeal
Investor appetite remains robust thanks to the sector’s regulated status, barriers to entry, and the stability afforded by government-supported funding streams.
As more families rely on dual incomes and are encouraged by the government’s funded childcare initiatives, demand for nursery places remains structurally strong. This long-term demand profile reassures investors that income streams are reliable, even during periods of broader economic volatility. Nurseries also play a vital role in community infrastructure, early education and workforce participation, making them attractive to investors pursuing social impact outcomes. Although sale and leaseback transactions continue to be a feature of the market, shifting economic conditions and yield recalibration have prompted some investors to favour alternative structures such as income strips, which offer more predictable, lasting returns. Vital to investment performance is the rent review mechanism, which directly influences yields and covenant strength. Inflation-linked rent reviews typically provide the most predictable growth, helping compress yields due to lower perceived risk. When these reviews include caps and collars, both investor confidence and tenant affordability strengthen. Conversely, uncapped index-linked reviews expose tenants to rental increases that may exceed earnings growth, especially during periods of high inflation. This can erode operating margins and weaken covenant strength, ultimately increasing risk for investors and widening yields.
Understanding the difference between RPI and CPI is essential in evaluating index-linked leases. For operators, RPI-linked leases may result in steeper rental increases over time. This can benefit investors seeking stronger growth but may create affordability challenges for tenants.
Open-market rent reviews raise a distinct set of challenges. Nursery-specific comparables can be inconsistent or limited, creating uncertainty for both landlords and tenants, often resulting in wider yields for investors and complicated financial planning for operators. While open-market reviews may favour tenants in a flat or declining market, their unpredictability can weaken covenant perceptions and complicate cashflow forecasting.
Turnover-linked or hybrid models are less common in the nursery sector but offer flexibility that aligns rental payments with trading performance. This can support tenants during quieter periods, but volatility of turnover-based rents generally only appeals to specialist investors comfortable with variable income streams.
Across all lease types, the common theme is the need for income certainty. Investors price assets based on the security and predictability of future rent, while operators require manageable rental structures that support sustainability. In a sector characterised by tight margins, regulatory obligations and rising operating costs, well-structured leases are critical to balancing risk and value for both parties.
Evaluating rent review mechanisms
CPI
The UK’s official inflation measure, calculated using a modern methodology and internationally comparable, offering a more stable and statistically robust indicator of inflation.
RPI
Although still widely used in long-term contracts, includes additional housing-related costs, and is calculated using an outdated methodology that often results in higher inflation readings.
From a property perspective, maintaining buildings, managing lease events, and identifying planning opportunities can significantly influence long-term value. High-quality Ofsted ratings, clear planning documentation and robust title information are also essential for financing and transactional readiness. Overall, the children’s day nursery sector remains a resilient and attractive investment class supported by strong fundamentals and sustained demand. Operators who manage tenure strategically, negotiate sustainable lease structures and invest in operational excellence will be best positioned to maximise value and secure lasting success.
Cluster-based operational models
Strong financial reporting
Strategies focused on staff retention
Beyond leases, operational performance remains central to maximising value, with operators able to enhance financial resilience through various avenues:
Maintaining operational excellence
Technology-driven occupancy and staffing optimisation
planning
Jenny Nicol
Associate Director, Leisure and Trading
+ 44 (0) 1865 269 106 + 44 (0) 7870 403 843
jennifer.nicol@savills.com
The benefits of Central Facilities Buildings for holiday parks
With their revenue-boosting potential and year-round appeal, Central Facilities Buildings represent a transformative opportunity for holiday parks.
Holiday parks and campsites form a key part of the UK’s tourism infrastructure. In 2024, the sector generated an estimated £12.2 billion in visitor spending and supported over 226,000 full-time jobs. With a wide geographic distribution and thousands of individual sites, this long-established sector plays an important economic role, particularly in rural and coastal areas. To retain their long-term viability and appeal, forward-thinking holiday and caravan parks across the UK are investing in Central Facilities Buildings (CFBs) as a priority. As consumer expectations evolve, driven by a demand for higher-quality experiences and all-weather and sustainable leisure amenities, operators are responding with the development of modern, multifunctional buildings that act as the social and commercial hub of their parks. Such investments fall into two main categories: the replacement of older facilities, and the delivery of new, purpose-built facilities within expanding or newly developed parks.
Replacing outdated facilities
Many holiday parks developed in previous decades still operate leisure facilities that no longer meet today’s standards. Small or dated buildings with limited offerings can constrain the overall visitor experience and reduce the park’s attractiveness outside peak summer months. Replacing these with contemporary CFBs allows operators to introduce facilities such as indoor swimming pools, spa and wellness areas, gyms, and flexible dining spaces that align with today’s holidaymaker expectations. These modern facilities play a vital role in capitalising on trends such as wellness tourism and multigenerational breaks.
Indoor leisure facilities can mitigate seasonality by offering compelling reasons for guests to book stays throughout the year.
Upgraded CFBs also have a material impact on occupancy patterns. Historically, occupancy at UK holiday parks would decline during the low season, with industry reports noting average occupancy rates falling as low as 11% in January, and to around 25% to 30% in early spring, illustrating the challenges parks face outside of peak months. By contrast, indoor leisure facilities can mitigate seasonality by offering compelling reasons for guests to book stays throughout the year.
The quality of on-site facilities can positively influence sales performance and overall market positioning. Investment in contemporary, well-maintained buildings enhances the attractiveness of a park and reinforces its value to prospective and existing owners, with outcomes dependent on the scale and characteristics of the site.
New holiday parks are frequently designed around a central hub from the outset, with CFBs planned as part of the core infrastructure. These purpose-built facilities support efficient operations, create focal points for guest activity, and enhance year-round appeal. Operators such as Center Parcs have demonstrated how comprehensive indoor facilities can underpin consistently high occupancy levels in all seasons. Indoor leisure facilities reduce reliance on the weather – a huge advantage given the UK’s climate – enabling parks to market winter breaks, short-stay weekends, and off-peak specials. This enhances revenue stability and supports broader business resilience.
New facilities with year-round appeal
The advantages of modern CFBs extend beyond guest attraction:
Newer buildings can incorporate energy-efficient technologies, from improved insulation to solar panels, reducing running costs and carbon emissions.
Well-designed CFBs can serve local residents as well as holiday guests. For example, a space may operate as a coffee shop or casual dining venue by day and transition into a bar or restaurant in the evening, fostering broader community engagement.
The wider benefits of quality CFBs
Enhanced facilities drive increased visitor spend, extend stays, and create both full-time and seasonal jobs for local people, boosting rural and coastal economies.
With contemporary CFBs, the emphasis is on flexibility. Multipurpose spaces can adapt to daily rhythms and seasonal trends, hosting everything from wellness classes and social events to co-working spaces, broadening the appeal and commercial viability of the facility year-round. In summary, while investment in high-quality CFBs is not appropriate for every holiday or caravan park, it can deliver significant advantages where scale, demand and location allow. For larger or expanding parks,
modern CFBs play a key role in enhancing guest experience, supporting year-round operation, and improving commercial resilience. When thoughtfully designed and proportionate to the size of the park, these buildings can also deliver wider environmental, economic and community benefits. As such, these buildings should be viewed not as a universal requirement, but as a strategic investment that, in the right context, can materially strengthen the long-term sustainability and success of a holiday park.
Flexibility and futureproofing
rating
CHILDREN'S day nurseries
Environmental and operational performance
Economic Impact
COMMUNITY INTEGRATION
Phil Jones
+ 44(0) 1244 702 054 + 44 (0) 7585 442 718
pbjones@savills.com
A recap of the complex 2025 autumn Budget
The 2025 Autumn Budget announced a series of significant changes to business rates including changes in annual multipliers, permanently lower Retail, Hospitality and Leisure (RHL) multipliers, and a large property supplement making the rating process more complex and nuanced than ever. The draft list was released in November 2025, became effective on 1 April 2026, and will last until 31 March 2029. One key change was in RHL relief. Prior to 1 April 2026, RHL businesses received 40% relief up to £110,000 of rateable value per annum per business. Now, RHL properties in England benefit from permanently lower multipliers:
Small business RHL multiplier up to £51,000
38.2p vs 49.9p previously
Standard business RHL multiplier (£51,001 - £499,999)
43p vs 55.5p previously
The extent of the change to RHL relief came as a surprise to most, as it had already been reduced from 75% to 40% since its introduction. However, the Chancellor announced a large supplement for any property with a Rateable Value of £500,000 or more, with a large property multiplier of 50.8p in England for 2026/27. It must be noted that the legislation allows for the large property supplement to be up to 20% of the standard business rates multiplier, although it is currently set at 5.8% – which can be seen as positive news for businesses. Transitional relief will continue into the 2026 rating list, with increases in rates being capped at various levels depending on the rateable value and geographical location. The draft list saw rateable values generally increase overall, with some significant increases – namely for hotels and pubs. The latter has caused a frenzy in the media, with additional relief announced in January as a result.
The property supplement
Rateable value changes in the leisure sector
As shown above, the rateable values of leisure properties have increased across the board over the last three years. However, this can largely be attributed to the preceding antecedent valuation date of 1 April 2021, when we were still in the midst of Covid-19 pandemic restrictions, with indoor leisure venues being particularly impacted, and some outdoor-based assets benefitting from the easing of restrictions. By 1 April 2024, restrictions were lifted, and this was reflected in the post-pandemic recovery of trade.
Property Description
Sample
2023 Average Rateable value
2026 Average Rateable value
% Change in Rateable value
caravan park & premises
golf course & premises
garden centre & premises
marina & premises
tourist attractions/ dark rides
day nursery & premises
wedding & function venues
3,753
2,015
2,276
445
861
12,614
1,068
£45,482
£53,638
£55,650
£57,798
£93,455
£26,199
£37,727
£56,044
£66,021
£57,881
£71,035
£146,189
£30,127
£45,550
21%
23%
4%
56%
15%
Following heavy lobbying from the hospitality industry, in January 2026 the government announced that eligible pubs and live music venues would benefit from an additional 15% business rate relief in 2026/27, in addition to the support announced in the 2025 autumn Budget.
Additional support for pubs and venues
A venue will be eligible for additional relief if it:
For the purposes of Pubs and Live Music Venues Relief, the meaning of ‘pub’ does not include:
is currently open to the public allows free entry, other than when offering occasional entertainment allows drinking without requiring food to be consumed permits drinks to be purchased at a bar
restaurants, cafés, nightclubs, snack bars hotels, guesthouses, boarding houses sporting venues festival sites, theatres, cinemas museums, exhibition halls casinos
The 15% relief technically applies for one year. Rates bills will be frozen in 2027/28 and 2028/29 but will go up with inflation in this time. This will eliminate transitional relief throughout the rating list. So, although the extra support is positive, it has the potential to create a cliff edge in 2029, when a new rating list takes effect.
marinas
CHRIS HOOPER
Surveyor, Leisure and Trading
+ 44 (0) 1244 702 068 + 44 (0) 7816 184 127
christopher.hooper@savills.com
Soucre: Helix Dynamic
The marina market remained buoyant in 2025, with sales boosted significantly by the group transactions of Boatfolk to Premier Marinas and Aquavista to Antin Infrastructure Partners, along with numerous individual sales. Demand for leaseholds was also seen in the acquisition of Edinburgh’s Port Edgar by West Coast Capital and Fox’s Marina in Ipswich by Morgan Marine. The fundamentals remain strong, with high occupancy levels reported and stable income from berthing fees with year-on-year inflationary – or inflation-beating – increases, particularly in popular coastal locations where demand outweighs supply. But with the market not immune to economic headwinds, the squeeze on discretionary spending, and population drivers that will likely affect future demand, will it be inland or coastal marinas that attract the most investment? Here, we explore six of the potential trends determining their future.
Coastal occupancy is strong at
96.6%
Inland occupancy remains high at
90.3%
Source: British Marine 2025
Boat sales
The offer of boatyard services varies significantly by site and operator. It can significantly skew achievable profit margin, but it can also boost revenue and was noted in a recent survey to be an area of growth for many businesses last year. With concern over ageing boat stock, such services may become even more important for customers. However, the costs of abandoned boats, which affect every marina, is an added pressure. Both inland and coastal marinas are affected by these trends.
Servicing older boats
As we see with property sales in the holiday home sector, profit margins fluctuate from year to year in marinas business according to the rate, volume and value of their boat sales. British Marine 2025 reports that: “sales are not even across boating markets and have been dominated by the purchase of new, high-end sailing yachts, with the more affordable pre-owned boat market in a slump.” This sits in contrast to holiday homes, where both luxury and entry-level models have proved popular in recent years, with the mid-range coming under pressure. For high-end sales, coastal marinas will remain ahead for the time being.
Many traditional leisure sectors now face the challenge of an ageing customer base and a time-poor, less affluent younger population that is more likely to rent or hire than buy. The golf sector has adapted to this situation by modernising the game to allow shorter sessions and by incorporating technology to draw in a younger crowd. However, it’s difficult to see how marinas might similarly evolve their offering. For older audiences, proximity to facilities, concerns around the cost of living and, ultimately, the active nature of the interest, may eventually lead to lower demand. That said, despite these concerns being acknowledged across the sector, there is little evidence to demonstrate a downward trend just yet. Location remains key, with accessibility to large population centres and tourist spots an important selling point. In this regard, inland boating is likely to fare better than coastal for older demographics.
Demographic drivers
The demand for residential berths is rising due to increased housing costs, a trend towards part-time living abroad, and almost full occupancy of existing berthing capacity. For many operators, residential moorings are a key source of income, although balancing the additional pressure they place on space and services can be a challenge. Inland marinas are embracing the popularity of permanent moorings, as an enhanced mooring fee can add value straight to the bottom line.
Residential berth demand
Operators in prime areas have cited planning constraints as a blocker to expansion or new builds. However, whether this reasoning relates to perceptions of the process, the time and money it entails, or actual refusals, is unclear. Such constraints are frustrating but will intensify demand in sought-after locations, keeping occupancy levels – and consequently rates – high. We foresee planning constraints having the most impact on coastal marinas in the south and south-west of England.
Planning constraints
Despite strong or steady consumer spending, multiple data sources show that consumer sentiment and confidence were low in 2025. This apparent contradiction has become a defining feature of the post-pandemic economic environment and can be explained by a psychological gap where consumers feel worse than their financial reality would suggest. That said, the boost in spending data that comes from high earners masks the fragility that lies behind average numbers. Spending data is factual, but surveys capture emotion, and the disparity between the two means consumer confidence has become a weaker economic indicator than it once was.
Consumer confidence
Given that the hold period for operators and investors in this sector remains longer than average, time is on our side when it comes to addressing the opportunities and challenges listed above. That said, as the flight to quality gets underway, the differentiation between prime and tertiary stock is likely to become more pronounced, meaning that sales of assets should target the right buyer profile and be priced realistically. Group operators may also wish to streamline their portfolios to focus on their prime core sites.
residential parks
Amanda Blythe-Smith
+ 44 (0) 1865 269 117 + 44 (0) 7968 550 424
absmith@savills.com
The residential home parks sector is becoming recognised for its strong investment appeal, thanks to its scalability, simple and stable business model, and potential for sustained returns. Investor interest is also rising due to progressively tightened regulations, and a growing awareness of the sector’s unique position in relation to the traditional residential market. The space is expanding and maturing, with a gradual shift amongst some operators towards upscale home parks which offer a more aspirational lifestyle for residents, with lower maintenance and improved accessibility. Dedicated age-limited home parks and gated communities are particularly appealing for buyers looking to downsize without the financial or physical burdens associated with conventional bricks-and-mortar homes – and their annual pitch fees, with index linked increases, represent a steady income stream for operators.
Buyers are recognising that home parks offer a credible route to home ownership, at prices typically 10% to 20% below traditional properties.
Bridging an emerging property gap
A recent study by the Home Owners Alliance revealed that around 1.2 million UK homeowners aged 55 and over paused plans to move in 2024 and 2025, despite wanting to relocate. While rising house prices in the traditional market and moving costs continue to be major barriers across all age groups, older homeowners face a more distinct challenge.
A clear relationship is also emerging between residential home park pricing and the wider housing market. The public is recognising that home parks offer a credible route to homeownership whilst also facilitating equity release, with prices typically around 20% below traditional properties.
45%
40%
35%
30%
25%
20%
10%
5%
0%
Stress/upheaval of moving
House prices are too high
Moving prices are too high
Lack of suitable houses to move to
Do not want to move from friends/community
High cost of living
Total homeowners
Homeowners aged 55+
Source: Home Owners Alliance
Moving on pause: comparison between all homeowners vs those over 55
The study highlights that 38% of homeowners over the age of 55 would choose a bungalow as their next home, making it the most popular option among this group. However, the availability of bungalows is shrinking dramatically. According to National House Building Council data, bungalows accounted for around 11% of new homes in 1990, but by 2024 this had fallen to just 1%.
12%
8%
6%
2%
1990
Source: NHBC
1992
Percentage of new home bungalow registrations
14%
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
To better understand the potential trajectory of the UK market, it is helpful to look at the United States, where the manufactured housing sector makes up a far larger share of the national housing stock, demonstrating what could be possible as demand accelerates in the UK for accessible, community-oriented, single-storey living.
If residential home parks accounted for just 1% of the UK’s total housing stock, the market would grow to around 280,000 homes, an uplift of approximately 140,000 units from current levels. While a supportive regulatory and planning framework would be a pre-requisite to the growth of the UK sector on this scale, the current planning system does not always readily accommodate the development of residential home park communities. This could slow the pace of expansion, however, both the size of the market in the US and demographic drivers in the UK indicate the degree of latent demand, and the significant opportunity available for sustainable growth.
If residential home parks accounted for just 1% of the UK’s total housing stock, the market would grow to around 280,000 homes.
Sources: www.manufacturedhousing.org; American Housing Survey, National Association of Home Builders (NAHB), census.gov
Residential Home Parks
UK (Estimates)
US (Manufactured Housing)
Approx number of communities
2,500
43,000
Approx number of homes
Average number of homes
Average number of residents
Approx average household size
Approx total number of homes
Country population
Percentage of home parks as percentage of homes
Percentage of people living on residential home parks
7,200,000
140,000
55
167
220,000
22,000,000
1.6
3.1
28,600,000
145,900,000
68,265,209
341,000,000
0.5%
4.9%
0.3%
6.5%
Investors are increasingly viewing the residential home park sector as a stable, long-term space backed by real, demographic-driven demand for single-storey homes that ostensibly outweighs supply. A supportive investment landscape opens up exciting opportunities, both for forward-thinking operators looking to enhance and expand their estate, and new entrants, whose aim is to create an institutional platform with
And as private equity investors assist in further institutionalising the residential home park offering, we could see its buying process start to align with the mainstream residential sector.
A growing opportunity for investors and operators
With bungalow supply failing to keep pace with demand, residential home parks offer a viable route to expanding accessible housing at scale, bridging a structural gap in the UK housing market.
Ellis Auger
+ 44 (0) 203 810 9895 + 44 (0) 7977 594 926
ellis.auger@savills.com
cntact us
Our services include agency, consultancy, planning, rating and valuation within the leisure and trading sectors.
meet the team
Head of Department, Agency + 44 (0) 207 409 8060 + 44 (0) 7967 555 478 isimpson@savills.com
Ian Simpson
london and oxford
Director, Agency + 44 (0) 1865 269 109 + 44 (0) 7870 999 485 kgriffiths@savills.com
Kay Griffiths
Associate Director, Agency + 44 (0) 1865 269 108 + 44 (0) 7812 424441 justine.morris@savills.com
Justine Morris
Associate, Agency +44 (0) 1865 269 015 +44 (0) 1865 269 000 asimmons@savills.com
Angela Simmons
Senior Assistant, Agency +44 (0) 1865 269 105 +44 (0) 1865 269 000 kelly.burt@savills.com
Kelly Burt
Apprentice, Valuation + 44 (0) 1865 269 044 + 44 (0) 7977 395 324 elinor.cayzer@savills.com
Elinor Cayzer
Assistant, Agency +44 (0) 1865 269 020 +44 (0) 1865 269 000 sarah.owens@savills.com
Sarah Owens
Director, Valuation + 44 (0) 1865 269 117 + 44 (0) 7968 550 424 absmith@savills.com
Director, Valuation + 44 (0) 1865 269 023 + 44 (0) 7870 999 539 jhigham@savills.com
James Higham
Director, Corporate Advisory + 44 (0) 203 810 9895 + 44 (0) 7977 594 926 ellis.auger@savills.com
Associate Director, Valuation + 44 (0) 1865 269 106 + 44 (0) 7870 403 843 jennifer.nicol@savills.com
Associate Director, Valuation + 44 (0) 1865 269 029 + 44 (0) 7807 999 593 pgraham@savills.com
Polly Graham
Assistant, Valuation +44 (0) 1865 269 086 +44 (0) 1865 269 000 cparr@savills.com
Charlie Parr
Graduate Surveyor, Valuation +44 (0) 7812 447 186 +44 (0) 1865 269 000 anora.davies@savills.com
Anora Davies
chester
Director, Agency + 44 (0) 1244 702 053 + 44 (0) 7825 239 097 rprestwich@savills.com
Graduate Surveyor, Agency + 44 (0) 1244 702 058 + 44 (0) 7812 422 746 phoebe.white@savills.com
Phoebe White
Director, Planning + 44 (0) 1244 702 052 + 44 (0) 7734 228 722 damiddleton@savills.com
David Middleton
Associate Director, Planning + 44(0) 1244 702 056 + 44 (0) 7972 929 839 philippa.davey@savills.com
Phillipa Davey
Assistant, Agency +44 (0) 1244 702 050 rachael.kershaw@savills.com
Rachael Kershaw
Assistant, Agency +44 (0) 1244 702 057 +44 (0) 1244 328141 gdavies@savills.com
Gill Davies
Associate Director, Planning + 44(0) 1244 702 054 + 44 (0) 7585 442 718 pbjones@savills.com
Philip Jones
Graduate, Planning +44 (0) 1244 702 061 charli.brickland@savills.com
Charli Brickland
Director, Valuation + 44 (0) 1244 702 055 + 44 (0) 7929 854 411 jennifer.gill@savills.com
Jen Gill
Surveyor, Rating + 44 (0) 1244 702 068 + 44 (0) 7816 184 127 chris.hooper@savills.com
Chris Hooper
Graduate Surveyor, Valuation + 44 (0) 1244 702 062 + 44 (0) 7812 447 049 tom.hodgson@savills.com
Tom Hodgson
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exeter
Director, Agency + 44 (0) 1392 455 742 + 44 (0) 7855 999 456 csweeney@savills.com
Chris Sweeney
Associate, Agency + 44 (0) 1392 455 767 + 44 (0) 7970 033 600 rosie.chisholm@savills.com
Rosie Chisholm
Assistant, Agency +44 (0) 1392 455 727 +44 (0) 1392 455 700 francesca.richards@savills.com
Francesca Richards
