During the past two seasons park operators have had the benefit of generous financial support from the Government as they form part of the holiday and hospitality sector. In July 2020 the VAT was reduced from 20% to 5% (a potential 15% reduction on Pitch Fees for the 2021 season).
That rate continued until the end of September 2021 and from then on and up to 31st March 2022 VAT went up to 12.5% (still providing a potential 7.5 % reduction on Pitch Fee costs). During that same period Rates on holiday homes were cancelled for 2021. The following year from 1st April 2022 a 50% reduction. So, a fairly generous package to pass on to holiday home owners?
So what for the 2023 season? - VAT is back to 20% and Rates are back to normal.
We need to go back to the 2020 season to compare what increases have taken place over the past three years and how much of the Government support package was passed on.
Given that the Bank of England predicts an imminent recession, and inflation in respect of the everyday cost of living has risen above 10% during the past twelve months, will this prompt the park operator to keep their increases to a minimum and help holiday homeowners through this very difficult financial period?
We do hope so. Please get in touch with us to let us know how your pitch fees are affected.
Due to the shortage of supply of new holiday homes the used market is extremely buoyant. Park operators and dealers are paying record amounts for good used holiday homes throughout the UK. So, if you are thinking of selling for whatever reason, do not take the first bid that comes along. Shop around! Dealers and parks are desperate for good stock.
We do hope you are not planning to sell up, but if you are we’re here if you need any guidance or help with the process.