Caravan parks thrive amid the gloom

Interview with...

Nick Dyson, partner, Blacks Solicitors
Topics covered:
Sector's performance since the credit crunch, generating revenue through council accommodation and why City investors are so keen on caravan parks
CV:
Nick Dyson is partner on the licensing team
Expertise:
Blacks are associate members of the British Holiday and Homes Parks Association and represent numerous mobile home and holiday home park operators on acquiring, managing and disposing of sites. This includes advising on park regulations, site licences and planning issues. Also help pubs, bars and restaurants obtain licenses
Location:

Leeds
Caravan park

Nick Dyson on the sector's performance since the financial crash...

"There’s a lot of activity, and when we look at the wider economy there is certainly a move away from travelling further afield, more towards staycations.

"Many operators have had a relatively good recession. People have started looking more closely at where they spend their money, and holidays are an easy way to save money.

On unexpected alternative revenue sources...

"Councils have also seen it as a way to provide affordable housing. It can be a realistic medium-term solution for many as bungalows are limited in number. Mobile homes provide some good quality accommodation in some nice areas of the country at affordable prices.

Some pretty big operators have entered the sector with investment from the City, which has been getting a return on mobile home parks on a massive scale

On the surge in demand for caravan and mobile home parks for sale...

"There has been a professionalisation of the sector in recent years. Some pretty big operators have entered the sector with investment from the City, which has been getting a return on mobile home parks on a massive scale.

That’s been partly brought about because the cost of property in the boom times was so great that people were always looking for alternatives to get a good return. Niche sectors like caravan parks became attractive because they weren’t as accessible as a shop with a flat above it, so prices and yields were going through the roof.

It also helps you spread your risk. Instead of just one property you have one site but with a number of different units. So you have a number of opportunities to gain income, either through fixed fees or sales over a period of time.

Read about managing holiday parks with Maya Asset Management's Victoria Brannen