Investing in Park Home and Mobile Home Parks

“Owning parks offers a very good fixed income, from both ground rent and ad hoc income from sales. The risk is low but the return on investment is strong.”

Up until now, it has not been possible to own park home estates (or mobile home parks) unless you wanted to manage the parks yourselves. Taking up a lot of time and a requiring a great deal of industry specific skills, the park home industry has been overlooked by many as an investment opportunity. However, as a park owner you own a piece of land with planning permission that provides a monthly lease income and ad hoc income from new sales, second-hand sales and refurbishment. Please read our case study based on an actual park in Berkshire, which will give a representation of the investment and resulting income this would generate.  

Regular income

The monthly lease income increases every year at the government's Retail Price Index (RPI), ensuring that the baseline for income also increases every year. In addition, you will likely benefit from capital growth with parks following the trend of increasing land prices. Certainly the forecast increases in land prices are positive for the next 10 years, especially given the recession we have endured through 2008 and 2009.  

Industry experience

Without experience of the park homes industry, it might seem impossible to invest in parks and benefit from the financial opportunities it can offer. We hope to offer investors a route into owning a park without having to worry about the day-to-day commitment. Freedom Park Management can also help you find the park or parks that offer the level of investment and return you are looking for.  

Summary of benefits

Other benefits of park ownership include the solid, continual demand for affordable housing combined with the continually aging population we have in the UK. There are 2000 parks across the United Kingdom, containing approximately 80,000 park homes and around 200,000 people. In 2006, 20 million people in the UK were over 50 and the population continues to age every year. The park home industry offers this age group a route to downsizing, with the average house price for this age group being in excess of £200K and the average park home costing only £140K. It is easy to see the appeal to downsize and draw a lump sum of cash from a house - a situation constantly driving demand for park homes in the UK. For a more comprehensive list of the benefits click here  

Demand for Park Homes

In addition, as it is difficult to obtain planning permission for new parks, the demand for new park homes is outstripping the supply of homes being made available. Over the last 10 years this has greatly added to the price of both park homes and the parks.