Holiday home ownership FAQs
If you are considering buying a holiday home, you will likely have practical questions about rules, costs, living arrangements, and how ownership works in reality.
This FAQ hub brings together clear answers to the most common holiday home ownership questions in one place, helping you resolve concerns before moving on to view holiday homes for sale.
For clarity, these answers relate to park-based holiday home ownership (static caravans and holiday lodges), not second residential properties.
Can you live in a holiday home permanently?
No. Holiday homes on licensed holiday parks are for holiday use only and cannot be used as a permanent residence.
Parks operate under planning conditions that restrict:
• Full-time residential living
• Use as a main home
• Continuous occupation beyond permitted seasons
You must maintain a separate permanent residential address.
Do holiday homes pay council tax?
Not all holiday homes on holiday parks pay council tax. However, they're are council rates on St. David's Leisure parks.
• Council rates may apply
• Holiday homes are typically subject to site fees paid to the park
• Business rates may apply in some circumstances, depending on usage and classification
The park operator can explain how charges apply in your specific case.
What taxes apply to holiday home ownership?
Holiday homes are generally considered a lifestyle purchase, not a tax-advantaged investment.
Depending on your circumstances:
• You may need to insure the holiday home appropriately
• Income tax may apply if you rent it out (where permitted)
• Capital gains tax rules differ from residential property
You should seek independent financial advice if tax treatment is a key concern.
Are there rules about renting out a holiday home?
Some parks allow holiday home owners to rent out their property, while others restrict use to owners and their guests.
Rules vary by park and may cover:
• Whether subletting is allowed (no subletting is allowed on St. David's Leisure parks, for example)
• Approved letting schemes (no letting is allowed on St. David's Leisure parks, for example)
• Standards and compliance requirements
Always check the park’s ownership agreement before assuming rental income is possible.
Can you get a mortgage on a holiday home?
Holiday homes are not usually purchased with standard residential mortgages.
Instead:
• Many buyers purchase outright (St. David's Lesiure do not offer financing direct)
• Some specialist lenders or finance options may be available
• Terms differ from residential borrowing
Any financing should be arranged with a clear understanding of ownership restrictions.
What ongoing costs should I expect?
In addition to the purchase price, holiday home ownership typically includes:
• Annual site fees
• Utilities such as electricity, gas, and water
• Insurance
• Routine maintenance
Understanding these ongoing costs upfront is essential before committing.
Do holiday homes lose value?
Holiday homes should not be viewed as a financial investment.
• Values can fluctuate
• Depreciation may occur, particularly in early years
• Resale depends on condition, age, and park demand
Most owners buy for lifestyle reasons, not capital growth.