Cost of Living in a Residential Park Home in the UK

Red Deer Village is an over 50s residential park in Stepps, Glasgow. We pride ourselves on offering high quality residential park homes that are finished to the highest standards. We often talk about the practical benefits of downsizing from a bricks and mortar property to a park home during retirement, but it’s also important to consider the financial implications. Here we answer our most commonly asked question – ‘how much does it cost to live in a residential park home in the UK’? We look at the cost of living in residential park homes in Scotland and the rest of Britain, to see if park home living is the best way for you to spend your retirement.
Purchase Cost of a Residential Park Home
The most obvious cost involved in buying a park home is the initial purchase price. Park homes are usually significantly less expensive than a bricks and mortar property, which is one of their main appeals. Residential park homes offer those reaching retirement age the opportunity to free up equity and downsize, and to enjoy the later years of life with cash in the bank. There’s no stamp duty to pay when buying a park home. Residential park homes at Red Deer Village currently start from around £164,950, with prices varying depending on size, model, specification and area of the park.
Site Fees
Very rarely can you purchase a park home to site on a park of your choice, unless you own land yourself. Normally, you must purchase a park home through an official park, like Red Deer Village in Scotland. You are granted a license to use the plot the home is sited on indefinitely, but you do not own the plot/land, only the home itself. Therefore, parks will charge a monthly site fee for the license. In Red Deer’s case, this goes towards the general upkeep of the park. This includes maintenance and gardening of communal areas, the use of our residents hub and its’ activities and the running of our courtesy minibus, which takes residents shopping on a weekly basis. Site fees at Red Deer Village are on average £135-£210 per month, with a small percentage increase per year.
Commissions
When you sell a park home, there is a 10% commission payable to the park. This is due to the fact that the value of the home is likely to have increased (because the land has increased in value), and the resident is paying the park for a share in that increased value. It also reflects that the pitch and amenities of the park add to the resale value of the home itself. Without a commission transfer fee, pitch fees would have to be higher, in order to ensure that the park continues to receive investment in its’ upkeep. This commission ensures that the park’s appearance remains an interest to both home owners and park owners alike.
Council Tax
Residential park homes in the UK are usually charged at Council Tax Band A. This is the most affordable rate.
Utilities
Park home owners at Red Deer Village are responsible for their own gas and electricity suppliers, as we have mains services. This means you can choose who’s right for you. Park homes are well insulated, so typically cost a lot less to heat than a bricks and mortar property. There’s also no problem for you to have BT, Virgin or Sky – all services are available!
Maintenance
One of the costs of living in residential park homes is their general maintenance. Homes must be painted within the first 2 years of manufacture, and every 3 years thereafter. This ensures exterior warranties remain in place, such as Gold Shield or Platinum Seal. Plus, general upkeep items always come up, just like in a house. You may decide you’d like a window washer, gardener, pressure washer or your gutters cleaned. So, it’s a good idea to save a few pennies.
We hope this list gives you an idea of what to expect from a cost perspective when downsizing in retirement. If you would like to learn more about the costs of living in a residential park home in Scotland or the UK, please contact us to discuss. Alternatively, if you would like to come and visit Red Deer Village, and check out residential park homes first-hand, please call us on 0141 779 2973 to arrange a viewing! One of our friendly team would be more than happy to take you on a tour of the facilities. They can also answer any questions you may have and introduce you to existing residents.