After a turbulent period, the UK holiday parks sector has entered 2026 with renewed confidence. Deal volumes in 2025 doubled year‑on‑year, driven largely by established operators rather than new external investors.
For holiday parks specifically, the combination of stabilising supply, an active and experienced buyer pool, and improving lending conditions has helped restore momentum. Reducing interest rates and a clearer economic backdrop are providing operators with greater certainty as they plan investment and expansion for the year ahead.
While easing inflation and a lower Bank of England base rate (3.75% at the time of writing) have supported the broader real estate market, they have had a particularly notable effect on holiday parks. Operators in this sector typically work with significant ongoing capital expenditure – such as upgrading accommodation, improving infrastructure or expanding facilities – so more favourable funding conditions have been critical in unlocking activity. Although the 2025 Budget created a brief pause, confidence returned quickly, underpinned by strong domestic demand for affordable, flexible UK holidays and the stable income derived from a mix of caravan sales, pitch fees and short‑stay letting.
Across 2025, several clear operational trends emerged. Caravan sales showed a divergence in demand: budget models remained resilient, reflecting ongoing appetite for accessible ownership, while well‑located coastal and countryside parks continued to draw interest from higher‑spending buyers.
Holiday letting patterns shifted towards shorter, more frequent breaks, benefiting parks with dynamic pricing systems and mobile‑first booking capability. This has helped operators capture late demand and maintain occupancy during shoulder periods.
At the same time, rising operating costs – particularly wage pressures linked to the National Living Wage increasing to £12.71 in April 2026 – have prompted operators to focus on efficiency. Investment in technology, energy management and streamlined staffing models is becoming increasingly important to protect margins.
Pitch values stabilised in 2025, offering the sector a more predictable platform. Touring parks averaged £10,833 per pitch, with top-tier sites achieving up to £20,000. Holiday static parks settled at £32,190, slightly below pre‑pandemic levels, while residential parks recovered to £40,547, supported by strong demand for high‑quality senior living environments.
Deal activity in the £1 -5 million range is expected to remain healthy, supported by improving funding conditions and continued appetite from experienced operators. Rising costs and regulatory shifts will require adaptable business models, while forthcoming changes to Inheritance Tax and Business Property Relief may influence ownership planning.
Despite these challenges, demand for staycations, affordable holidays and high‑quality residential park living remains robust, positioning the sector for steady performance through 2026.
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