A guide to site fees for residential park homes

Moving to a residential site is an exciting opportunity to live in a beautiful location and enjoy a lower-maintenance lifestyle. But getting your head around park home site fees can be confusing.

How much do they cost, and what exactly do they cover? These are just a few of the questions that regularly crop up.

Here, we cover everything you need to know about site fees for residential park homes in the UK so you can focus on finding your ideal property.

What are park home site fees?

Site fees are recurring charges that residents must pay to the park owner in exchange for housing their property on their land.

Think of it like a leasehold property—these fees are similar to the ground rent homeowners pay the freeholder if their property is leasehold.

The fees cover various services and amenities the park provides, such as the maintenance of communal areas, access to on-site facilities and, in some cases, utilities such as water or sewage.

Related: Park homes: the ultimate guide

How much are park home site fees?

The average cost for park home site fees in the UK is around £160-£500 per month, or £2,000-£5,000 annually.

However, remember that this is a rough estimate, and the actual cost can vary widely depending on a multitude of factors, such as:

• site location and region-specific variations
• size and type of park home
• park facilities and amenities
• inclusion of utilities and services

Some parks offer all-inclusive pitch fees that cover utilities such as water, energy, and sewage.

This can simplify your budgeting, as you’ll have a clearer picture of your monthly expenses, but it’s worth looking at your options before going for a deal like this.

It’s important to carefully review the terms of your agreement with the park owner before signing anything and ensure you understand what is and isn’t covered by the fees.

You’ll typically be responsible for arranging and paying for utilities separately if they aren’t included.

Remember, park home site fees can increase on an annual basis. They are usually calculated using the current inflation rate and the cost of any agreed park improvements or maintenance. However, the park owner must give you 28 days’ written notice.

We talk more about recent updates to the inflation rate later in this article.

An example of residential park home site fees

Here’s a quick example of two different locations to show how much site fees can vary.

At Cosawes Park, a residential site based in Truro (Cornwall), the fees are as follows:

You can pay annually, quarterly, monthly, or weekly, which isn’t often the case.

Water, sewage, and electricity costs are paid directly to the park and are set at a fixed rate. However, the cost of heating oil is variable.

Let’s compare this to Red Deer Village, a residential site based in Stepps (Glasgow):

There is more information here, which states residents are free to choose their own energy suppliers and that the cost of mains water is included in the council tax, which is Band A.

You also have the option to pay site fees either monthly or annually.

Their site fees vary based on the type of park home you choose, but this property worth £299,950 costs £234.81 per month.  

As you can see, the site fees at both parks differ hugely, with the annual cost at Cosawes Park being £4,982 compared to £2,818 at Red Deer Village.

However, each park has a different system in place regarding energy bills, and they’re set in completely different locations.

Hopefully, this demonstrates how important it is to research each site individually.

Related: How to find the right park home site for you

How often are park home site fees paid?

Site fees for residential park homes in the UK are usually paid monthly.

The instalments you pay will be shown on your agreement documentation and are typically paid each month for the month to come.

That said, some park owners may charge an annual or quarterly site fee instead, so always research this before entering into an agreement.

Mobile Homes (Pitch Fees) Act 2023

If you weren’t aware, this act came into force on 2 July 2023 and changed how site fees for residential park homes are calculated in the UK.

From now on, the inflationary index used in annual pitch fee reviews must be CPI (consumer price index) rather than RPI (retail price index).

This is good news for residents, as RPI inflation is typically higher than the former.

Site owners are not permitted to pass on any loss of income to residents because of this act. They must fill out an official pitch fee review form demonstrating how any increases have been calculated.

If you spot that your site owner has included an amount representing a loss of income, you do not have to pay this and can continue paying your current pitch fee. Cases like this can be taken to a First-tier Tribunal.

Specialist park home insurance through Ripe

Now you know what to look out for when choosing a site, you may want to consider protecting your park home with specialist insurance. 

At Ripe, we arrange specialist park home insurance that covers your property, including fixtures and fittings, up to the value of £500,000 and your contents up to the value of £75,000. The cover can be tailored to your requirements quickly and easily, so you’ll never pay for cover you don’t need. 

Click here to discover how we can help, or get an instant online quote today.