What are the challenges and opportunities in the holiday park market?

The holiday and residential park markets have shown tentative but encouraging signs of recovery in the first half of 2025, following a subdued 2024, and we have seen a steady increase in the number of new enquiries from both prospective buyers and sellers. Of all the leisure businesses we inspected in the first six months of the year, 73% were holiday or caravan parks, showing high levels of activity in the market among those looking to buy and sell.

Renewed interest in the sector

The sector is carrying a new momentum, with consistent demand for larger, static-led parks which offer proven occupancy and reliable cash flow.

Holiday parks with potential for diversification of services remain particularly sought after. The value of undeveloped pitches with planning permission has remained static, and niche operators offering premium accommodation and facilities continue to perform well.

Investor confidence is returning, particularly from private equity, as the UK’s institutional holiday park market enters a new phase in its investment cycle. Corporate M&A activity is on the rise, supported by a gradual decline in borrowing costs and increased refinancing activity.

Challenges and headwinds to navigate

The sector continues to grapple with operational challenges, including rising costs, high debt levels, and continued caution in consumer spending, which is pressuring margins.

The government’s changes to business inheritance tax policy have the potential to impact park owners, many of whom are multi-generational family businesses. The possibility of increased regulation within the sector is also a concern for some operators, as, for example, residential park home estates may find that third party commission income is in jeopardy in the future.

Opportunities for growth and expansion

Despite these headwinds, operators have shown ingenuity in maintaining profitability. Many have focused on enhancing the quality of their offerings to justify pricing and retain customer loyalty in a market where discretionary spending remains under pressure.

The government has signalled significant planning reform, which would prioritise development over local objections, and this in turn could lead to more planning applications being approved and a faster planning application process.

In this respect, operators should be able to take advantage of increasing demand and adapt accordingly, with less red tape and barriers to development and investment, which could accelerate growth in the holiday and residential park markets over the medium term.

For more insights from our Leisure Market Review, click here.

For a confidential chat about your holiday or residential park property, acquisitions or disposals, contact Jamie Keith MRICS at Jamie.Keith@christie.com or +44 7736 615 871.