Brexit Bounce Continues - Sanderson Weatherall

Page created by Wesley Klein
 
CONTINUE READING
Brexit Bounce Continues - Sanderson Weatherall
Market Report
2018
A survey of values and trends in the caravan park
and leisure markets over the past year.

    Brexit Bounce Continues
      Despite various negative pressures affecting the economy, all sectors of the parks industry appear
      to have enjoyed a strong year of trading in 2017. Confidence amongst holiday and residential
      park operators remains high with many looking to expand and banks are again keen to lend to
      these cash generating freehold businesses. As a result, the market for the sale of parks remains
      strong, with a distinct shortage of supply in many sectors.

In this issue:
•   General Economic Background
•   Market Review
•   Analysis of Pitch Values
•   Autumn Budget Review
•   Parks Sold
•   Parks for Sale
•   Industry News and Views
Brexit Bounce Continues - Sanderson Weatherall
Parks Review

                                                                                                                   Holiday Parks                                            in respect of park businesses to enable managers to
                                                                                                                                                                            offer better rates of interest, which can only be good
                                                                                                                                                                            for the  park industry as a whole.
General Economic Background                                                                                        The majority of holiday park operators we have
                                                                                                                   spoken to during the latter part of the year, report
                                                                                                                   strong trading results.   Bearing in mind, 2016 was      Residential Parks & the Housing Market
                                                                                                                   also considered to be a good season the results for
                                                                                                                   most parks appear to be at least as good, or better,     The performance and strength of the housing
The UK economy appears to be at the centre of a           remaining below the rising costs of goods and            with some operators reporting provisional turnover       market continues to be an important factor for the
crossroads with signs pointing in various directions      services.  But again, this is not necessarily bad news   figures up by as much as 10%.                            parks industry because many customers will be
at the same time. The Brexit negotiations have            for some sectors of the holiday park industry which                                                               selling houses to buy park homes or releasing equity
created a level of uncertainty in many parts of the       target holidaymakers looking to obtain best value for    Touring and tenting parks reported a slower start to     to buy holiday caravans or lodges; but it is not so
economy, which in turn, has led the Office for Budget     money. So, despite the uncertainty caused by Brexit,     the season, with a noticeable lack of foreign visitors   much house prices, as the volume and activity, that
Responsibility to downgrade its forecasts for growth      the holiday park industry continues to benefit from a    in some parts of the country, possibly due to the        are the key issues.  However, as we know these are
in 2017, 2018 and 2019. The expected growth in            ‘Brexit bounce’.                                         knock-on effect of delays at the Channel crossings       inter-linked, because activity is curtailed when prices
GDP for the current year has been revised down                                                                     in 2016.  However, visitor numbers appear to have        start to fall, or if they rise so quickly that properties
                                                                                                                   picked up during the main summer months, with a          become unaffordable.

                                                          “
from 2% to 1.5%, falling to 1.4% in 2018 and 1.3% in
2019 and 2020.                                                                                                     very strong end to the season in September and
                                                                                                                   October.                                                 In recent years we have seen significant price
Meanwhile, inflation remains stubbornly above the                                                                                                                           increases with the average property price around
government’s target rate of 2%, with the latest figures
available (November 2017) showing CPI at 2.8%
                                                                 Despite the                                       Those parks offering self-catering holidays report a
                                                                                                                   similar story, with some discounting just before the
                                                                                                                                                                            24% higher than it was four years ago.   However,
                                                                                                                                                                            it appears the rate of increase is starting to slow

                                                                 uncertainty caused
and RPI at 4%.  Of course, higher inflation can be a                                                               peak period, leading into strong bookings in the late    according to reports published by the Nationwide
bonus to the parks industry, where this measure is                                                                 summer and autumn.                                       and Halifax, who report the annual increase at
                                                                                                                                                                            somewhere between 2.5% and 4.5%.  Both reports
often used for annual pitch fee reviews.  In an effort
to bring inflation under control, the Bank of England            by Brexit, the                                    The market for caravan sales has remained good
                                                                                                                   with reasonable margins.   In some cases, sales
                                                                                                                                                                            suggest that continuing low mortgage rates, healthy
                                                                                                                                                                            rates of employment and a lack of homes for sale
has recently increased the base interest rate from a
                                                                 holiday park industry
record low of 0.25% to 0.5%, with the expectation of
further modest rises in 2018.  However, the Governor
of the Bank of England, Mark Carney has stated that
any further increases would be ‘gradual and limited’.
It is likely to be many years before we see base rates
returning to pre-recession levels.
                                                                 continues to benefit
                                                                 from a ‘Brexit
                                                                                     “                             performance has been hampered by a lack of
                                                                                                                   available pitches.   On the one hand, it is good to
                                                                                                                   be receiving maximum pitch fee revenue, but, on
                                                                                                                   the other hand, it is frustrating to have no pitches
                                                                                                                   available for a new customer!
                                                                                                                                                                            continue to support house prices.

                                                                                                                                                                            More worryingly, the housing report from the National
                                                                                                                                                                            Association of Estate Agents suggests the number
                                                                                                                                                                            of house hunters registered per estate agent branch
                                                                                                                                                                            dropped by 11% from September to October 2017

On the plus side, statistics published by the Office
                                                                 bounce’.                                          The market for the sale of holiday parks has been
                                                                                                                   strong, buoyed by higher levels of confidence in
                                                                                                                                                                            and year on year the figure is down by 21%.  The
                                                                                                                                                                            number of properties sold to first time buyers also fell
of National Statistics (ONS) in November, show                                                                     the industry, increased activity from equity backed      in October, which may be an early sign that house
unemployment at its lowest rate since 1975 at just                                                                 groups and strong support from the high street           prices and activity may be stalling.  This accords with
4.3% of the working population.  There is however                                                                  banks in a sector they are keen to lend into.  This is   the comments of many residential park operators who
some concern regarding the continued squeeze                                                                       a refreshing change from the dark days immediately       have found the market for new sales becoming more
on average incomes as a result of wage inflation                                                                   following the recession when bank funding was            difficult, with many now finding that part exchange
                                                                                                                   almost impossible to obtain.  Indeed, several of the     schemes are vital to maintain the flow of new sales.
                                                                                                                   major lenders have now revised their lending criteria
Brexit Bounce Continues - Sanderson Weatherall
Caveat
                                                                                                                       As in previous years, we should stress that pitch values form only one of a wide range of valuation tools and the average
                                                                                                                       pitch values stated above should not be used in relation to the valuation of any particular property.

                                                                                                                       Pitch values can provide a useful guide, but should be used with care alongside other valuation techniques such as the
                                                                                                                       assessment of profitability.  In the current market buyers place considerable reliance on profits based valuations, whilst
                                                                                                                       lenders need to see clear proof of the affordability of any proposed borrowing.

                                                                                                                            FIGURE 1 - 10 YEAR HISTORY OF AVERAGE PITCH VALUES
                                                                                                                         £35,000

                                                                                                                         £30,000

                                                                                                                                                                                                                             The Values shown
                                                                                                                                                                                                                             are based upon fully
Analysis
                                                                                                                         £25,000
                                                                                                                                                                                                                             developed operational
                                                                                                                                                                                                                             pitches, including facilities
                                                                                                                                                                                                                             necessary to comply with
                                                                                                                         £20,000                                     Park Homes
                                                                                                                                                                                                                             Site Licence requirements,
As usual we have analysed the sale of all of the             Static Holiday Pitches                                                                                                                                          excluding the value of any
touring, static holiday and residential parks that we
                                                                                                                                                                                                                             caravans or additional
have dealt with over the past 12 months, both in             Holiday parks with static holiday pitches have seen a                                                                                                           amenities.  No adjustment
terms of our own sales and other transactions where          strong level of demand throughout 2017, particularly        £15,000
                                                                                                                                                                                                                             has been made for the
we have been valuers or advisors.   Our survey               larger parks with around 100 pitches or more.  Overall                                                                                                          variance of the sample
                                                                                                                                                                 Caravan Holiday
covers many thousands of pitches across dozens of            the average pitch value has increased from £18,000                                                       Home                                                   from year to year.  These
parks spread across all parts of the UK and, in total,       to £19,000 per pitch over the past 12 months.  Again,       £10,000                                                                                             figures are offered only as
encompasses over £200m of park sales.                        this is subject to a wide range of values, primarily                                                                                                            a market guide and should
                                                             determined by the size and location of the park,                                                                                                                not be used in relation
It is worth repeating that pitch values do not determine     with a low of around £9,000 and a high of £35,000,                                                                                                              to the valuation of any
the market price of a park, quite the reverse.   It                                                                       £5,000                                                                                             particular property.
                                                             although we note the latter was an exceptional park.
                                                                                                                                                                       Touring
is the demand from purchasers, their analysis of
the business in question and their appetite for the          Residential Pitches
property on offer that creates the eventual sale price.                                                                      £0
It is this price that we break down and apportion            Last year we reported a significant increase in the               2007    2008    2009   2010    2011      2012      2013       2014   2015   2016    2017
to the constituent parts of the property in order to         average value, up to a figure of £33,000 per pitch,
produce the pitch values reported below.                     primarily driven by high value sales in the South East
                                                             of England.  The average figure for the past 12 months
                                                                                                                                                                                 FIGURE 2 - RANGE OF PITCH VALUES
It is also important to understand there is a wide           has remained at a similar level for the same reasons.                                                £45,000
range of values within each category, as illustrated         Whilst we have dealt with sales from Cornwall to
by the second graph, Figure 2.  The average value            Lincolnshire, the bulk of activity has centred around                                                £40,000
drawn from these statistics is just that – the average       the South East of England, where parks have
– and it does not represent the value of any particular      commanded very high values, buoying the national                                                     £35,000
park.                                                        average.  Overall, we have seen prices ranging from
                                                             a low of £20,000 to £40,000 for pitches occupied by            Range of pitch values achieved in
                                                                                                                                                                  £30,000                                                            Park Homes

Touring Pitches                                              privately owned homes protected by Mobile Homes                the 12 month period 1 December
                                                                                                                                                                  £25,000
                                                             Act agreements.  Values for undeveloped or vacant              2016 to 30 November 2017.  The                                                 Caravan Holiday
Our survey for 2017 suggests that the average                pitches, particularly in the South East of England,            results depend entirely upon                                                        Home
                                                                                                                                                                  £20,000
price achieved for a fully operational touring pitch         have been much higher and we have witnessed very               the sample of parks sold and
remained broadly constant at around £8,000. Sale             strong demand for vacant pitches.  Given that some             serve only to illustrate the wide
                                                                                                                                                                  £15,000
prices achieved during the year indicate pitch values                                                                       differential of values.
                                                             large new park homes have achieved sale prices as
ranging from a low of £4,000 to a high of just under         high as £400,000, this is hardly surprising.                                                         £10,000
                                                                                                                                                                                         Touring
£13,000 per pitch, reflecting differing levels of quality,
facilities, location and earnings. We note touring                                                                                                                   £5,000

pitches also invariably cover a range of pitch types
                                                                                                                                                                        £0
from un-serviced grass pitches to fully serviced
hardstanding super pitches.
Brexit Bounce Continues - Sanderson Weatherall
Continuing Investor Appetite for Holiday Parks                                                                    Autumn Budget 2017

2017 has seen a continued and ever strengthening appetite for the sector from equity houses and investors,
with a number of notable transactions.                                                                            Business rates highlights

In December 2016, it was reported that a sale of Parkdean Resorts had been agreed by Epiris and Alchemy           Graham Isle, partner in our business rates team,
to Canadian Investment group Onex in a deal reported to be worth £1.35bn. Completing early in 2017 the            analysed how the changes in business rates may
sale took place less than 2 years after the merger of Park Resorts and Parkdean to create the UK’s biggest        affect businesses across England and Wales.
holiday park operator with 73 parks.
                                                                                                                  “During the budget it was announced that from next
At a similar time, Caledonia Investments plc sold its stake in Park Holidays to Intermediate Capital Group        April the annual rates increase will be based off the
in a £362m deal.  The group presently operates 28 caravan parks across southern England and is actively           lower Consumer Price Index rather than the Retail
looking at further acquisitions.                                                                                  Price Index. Early estimates indicate it could bring
                                                                                                                  about a benefit of £2.3billion to small businesses
In a reported deal worth £103m, February 2017 saw the sale of Park Leisure 2000 Ltd to Midlothian Capital         over the next five years.
Partners. With the group operating 10 high quality holiday parks across the UK, further growth is well underway
following the confidential sale of Pentire Haven Holiday Park to the group by Sanderson Weatherall earlier        “It was also good to hear that following the next
this year.                                                                                                        revaluation in 2022, the government plan to increase       Impact on the housing sector?
                                                                                                                  the frequency of revaluations from once every five
During the year, further expansion occurred with LDC backed Away Resorts acquiring Sandy Balls Holiday            years to once every three years.                           Diana Warr, residential expert considers the impact
Village in the New Forest. Away Resorts now operate 6 parks across the UK.                                                                                                   of the budget on the housing sector.
                                                                                                                  “There was also welcome news for thousands of
More recently, in anticipation of continued investor demand, Forest Holidays, which has 9 sites across Britain    businesses occupying workplaces split across               “The headline announcement in the budget was
has been put up for sale with a guide price of £100m.                                                             multiple floors as Hammond announced he would              undoubtedly the fact that first-time buyers will no
                                                                                                                  axe the staircase tax. Despite the ruling, businesses      longer need to pay stamp duty on property purchases
Elsewhere, other private equity backed groups continue to seek opportunities in the sector.  We are involved      affected will need to continue paying their current bill   up to £300,000.
with a number of such transactions presently that will further grow this sector of the market.                    until legislation is approved and the Valuation Office
                                                                                                                  Agency make the amendments. Unfortunately, this            “The abolishment of stamp duty is certainly a boost
                                                                                                                  may take time, which isn’t good news for businesses        for first-time buyers across the country but will have

   A new face joins the team                                                                                      in the short term.                                         a greater consequence for those purchasing higher
                                                                                                                                                                             value properties in London and the South. On top of
                                                                                                                  “Following the success of the business rates discount      the benefit to first-time buyers it is also good news
   Early in the year Sanderson Weatherall welcomed Lee Southan                                                    for pubs, it was declared that this would be extended      for existing homeowners as the Office for Budget
   to their specialist caravan and holiday park department based in                                               until May 2019, good news for the leisure sector           Responsibility has estimated that house prices will
   Devon. Lee joins the existing team and is providing valuation and                                              as roughly 90% of pubs currently benefit from the          rise by 0.3% as a result of the change.
   agency services across southern England and South Wales.                                                       £1,000 discount.
                                                                                                                                                                             “It was also announced that local authorities would
   Lee has over 12 years of experience dealing with commercial agency                                                                                                        be able to charge a 100% council tax premium
   transactions across all sectors, including pubs and hotels. This led                                                                                                      on empty properties. It is hoped that by charging
   to him winning the accolade of 2014 Estates Gazette ‘Deal Maker’                                                                                                          penalties in the form of council tax payments it will
   in Devon.                                                                                                                                                                 dissuade landlords and property investors from
                                                                                                                                                                             leaving vacant houses and flats while many struggle
   Since joining Sanderson Weatherall he has been immersing himself                                                                                                          to find somewhere to live.
   in the world of holiday and mobile home parks. Lee commented “As
   a child I enjoyed many family holidays in caravans and within my first                                                                                                    “Hammond announced that to boost housebuilding
   few months in the job I have already inspected some of those same                                                                                                         the government would provide a minimum of £44bn
   parks. It is a fascinating and buoyant sector with a lot of activity and                                                                                                  of capital funding, loans and guarantees to help
   I am looking forward to getting to know the movers and shakers and to putting some deals together”.                                                                       create an average of 300,000 new homes a year by
                                                                                                                                                                             the mid-2020s.
   Lee has already been instrumental in gaining some valuable new business and negotiating some
   challenging sales. Andrew Bagnell commented “Lee has already been able to use his past agency                                                                             “With a number of promises of extra funding and
   experience to good effect and I am sure he will be a great asset to the team”.                                                                                            re-allocation of resources the budget looks to be
                                                                                                                                                                             a promising one for the housing sector but as is
   Contact Lee on 01884 256741 or lee.southan@sw.co.uk.                                                                                                                      often the case, we eagerly await the outcome of the
                                                                                                                                                                             changes.”
Brexit Bounce Continues - Sanderson Weatherall
Parks Sold

After another successful year as one of the leading specialist agents dealing with all types of holiday caravan
parks and residential park home estates, we offer a selection of our highlights from 2017, as follows.

                                                                                                                   One of the largest transactions in 2017 was Bradford   In an attractive village on the outskirts of York,
                                                                                                                   Kaims Holiday Park in Bamburgh, Northumberland         Cawood Holiday Park comprises an established
                                                                                                                   sold to Maguires Country Parks.   Situated only 2      high quality static holiday caravan park set around
                                                                                                                   miles from Bamburgh, famous for its Castle and         an attractive lake with 77 static caravan pitches, 16
                                                                                                                   expansive sandy beaches the park was developed         touring pitches and extensive club, restaurant and
                                                                                                                   for 240 pitches along with permission to develop       function facilities including an indoor swimming pool.
                                                                                                                   48 new luxury caravan pitches.   The new owners        A sale was agreed to an existing park operator who
                                                                                                                   immediately sought to invest £1,250,000 to develop     already has two holiday parks in the region off a
                                                                                                                   the new pitches and to upgrade infrastructure to       guide price of £2,500,000.
                                                                                                                   benefit existing caravan owners.   The park was
                                                                                                                   marketed asking offers in excess of £5,500,000.

                                                                                   Parkfoot Holiday Homes

In summer the sale of Parkfoot Holiday Homes, a site developed with 175 static holiday caravan pitches
and 16 residential park home pitches, attracted unprecedented levels of interest from a number of existing
operators. The sought after location and attractive lot size was reflected in an exceptionally strong sale price
well in excess of the guide.

                                                        Pentire Haven Holiday Park, located on the North
                                                        Cornish coast near Bude, is another example of a
                                                        confidential sale that was achieved without the need
                                                        for full marketing and unwanted publicity.  Extending      Following a period of marketing during the spring      Located in the heart of the North Yorkshire Moors
                                                        to over 40 acres of land the developed park currently      and summer the sale of Bowdens Crest Caravan           National Park in the sought after village of Rosedale
                                                        operates with 320 touring and camping pitches and          & Camping Park was completed in September              Abbey we were delighted to offer for sale Rosedale
                                                        38 static caravan pitches but with a consent for a         2017, thus allowing the long term owners to enjoy      Abbey Caravan Park an exceptional mixed business
                                                        further 41 static caravans.   Facilities include a shop    a well earned retirement.   Located in an elevated     opportunity developed for static caravans, touring
                                                        and manager’s park home.  The park was acquired by         rural setting overlooking the Somerset Levels near     caravans, glamping units and holiday cottages.
                                                        Park Leisure for an undisclosed sum.                       Langport, the park comprises a mixture of static       Th strong location and facilities drew interest from
                                                                                                                   caravans and touring pitches, along with a club,       far afield with a sale finally agreed to a successful
                                                                                                                   games room and owner’s bungalow.  It was marketed      farming family looking for opportunities to diversify.
                                                                                                                   with a guide price of £975,000 and sold to existing    Rosedale Abbey was marketed with a guide price of
                                                                                                                   park operators who intend to upgrade and redevelop     £2,950,000.
                                                                                                                   the park and facilities.
Brexit Bounce Continues - Sanderson Weatherall
Over the years we have always found a good demand for holiday               One of the most interesting instructions of the year was the sale
parks in the South West of England and this has grown over the              of Humberston Fitties, an iconic and historic coastal chalet park
past year or so.   One of the first sales of the year was Higher            in Cleethorpes sold on behalf of the local authority.  Throughout
Trevaskis Touring Park located midway between Camborne and                  the First World War the site had been used to house soldiers
Hayle in Cornwall.  We initially marketed the property in the summer        stationed in the nearby Haile Sands Fort before being replaced
of 2016 with a guide price of £850,000.  A buyer was found during           by holiday makers after the war.  The property provided active
the autumn months and the sale completed in time for the start of           management opportunities and attracted a great deal of interest.
the 2017 season.  The park was developed for up to 90 touring and           It was sold to an existing park operator for well in excess of the
camping pitches, with a modern two bedroom bungalow providing               advertised guide price of £1,500,000.
high quality owner’s accommodation.
                                                                            Parks occupied by 100% timber chalets are relatively rare, but
2017 also saw the re-emergence of wealthier first time buyers               often work well in a wooded setting. Penlan Holiday Village is
seeking a sizeable holiday park as their first foray into the industry.     one such park, located near Newcastle Emlyn in Carmarthenshire,
An example of this activity includes Hook Farm Caravan &                    South Wales.  Marketed at a guide price of £1,100,000, the park
Camping Park, near Lyme Regis in Dorset, which was sold to first            was sold during the summer months to an existing park operator
time buyers selling a house in the Home Counties.  The property             who intends to take advantage of some latent planning permission.
was offered for sale in two lots with a guide price of £1,900,000
for the caravan park encompassing 100 tenting pitches, 17 static
caravans and an orchard with planning permission for a further 36
pitches.  Manager’s accommodation is provided by a detached 3               The retirement sale of Plas Newydd Caravan Park commanded a
bedroom bungalow, with a stunning adjacent 4 bedroom farmhouse              good level of interest at the start of the year. This long established
offered separately as Lot 2 for an additional price.                        ‘lifestyle’ park business comprising of 50 static pitches, large
                                                                            farmhouse and extensive range of outbuildings was sold off a guide
Other sales in the South West of England included Mena Caravan              price of £1,295,000 to an expanding operator in the region.
& Camping Park, near Bodmin in Cornwall, which was offered
for sale with a guide price of £895,000 and Lufflands Caravan
Park, near Holsworthy in Devon, offered for sale at a guide price
of £925,000.  Both properties included a detached house providing
owner’s accommodation and the benefit of a small licensed bar.
Mena is developed for 45 touring caravans and 2 static caravans,
whilst Lufflands has planning permission for 44 static holiday              Hollybrook Park in Easingwold, close to the historic city of
caravans and 6 touring caravans.                                            York presented a most attractive lifestyle opportunity including a
                                                                            substantial craftsman built owners’ residence along with an existing
                                                                            holiday lodge letting business.  We concluded a sale, including a
The buoyant conditions for the sale of residential parks would              part exchange property, close to the guide price of £865,000 with
suggest we should have dealt with a large number of sales, but an           the park being purchased by new entrants to the holiday park sector.
extreme shortage of supply has limited open market transactions
that have taken place in the last year.  Two sales in the South that
can be reported are Bourne Park, near Tonbridge in Kent and
Kimble Park in Aylesbury, Buckinghamshire.  The latter park, which
has consent for 30 privately owned park homes, was marketed at              The market town of Hawes is one of the most popular destinations
a guide price of £1,250,000 and sold within 24 hours to an existing         in the North Yorkshire Dales National Park and the sale of
park operator.  This underlines the extremely buoyant market for            Bainbridge Ings Camping and Caravan Park on the edge of the
parks of this type.                                                         town attracted strong levels of interest as a result.  Retirement of
                                                                            the existing operators led to a sale to an existing regional operator
                                                                            attracted by the untapped development potential and scope to
Billingsley Lodges in Shropshire represents an unusual                      commercialise the business. Guide Price £995,000.
opportunity to acquire a small but high quality holiday park in the
lower price ranges as it is rare to find a holiday park priced at less
than £500,000. The property has consent for a total of 10 lodges
with 5 privately owned units sited and 3 vacant serviced plots.             Willowgrove Leisure Park and Fishery was marketed confidentially
Additional land also provides potential for further development             and drew a good level of interest from established operators due to
subject to planning permission.   Marketed with a guide price of            the scale of the business providing over 200 holiday static caravan
£300,000, the park was sold within weeks to a new entrant to the            pitches and 56 residential mobile homes.   Located within a very
parks industry.                                                             popular area between Blackpool and Morecambe the property was
                                                                            acquired by an experienced caravan park operator.
Brexit Bounce Continues - Sanderson Weatherall
Parks For Sale                                                                                                                                                                                                                    U
                                                                                                                                                                                                                                 O ND
                                                                                                                                                                                                                                  FF E
                                                                                                                                                                                                                                    ER R

Here is an extract from our portfolio showing a small selection of parks for sale across England, Scotland
and Wales at the present time. Please contact us if you would like any further information, or would like to
register on our mailing system.

                                                                                                                          Park Home Estate                          Touring Park                       Holiday Chalet Business
                                                                                                                           South Yorkshire                           Shropshire                            South Tyneside
                                                                                                                              YRK1760                                 DVN1758                                 YRK1740
                                                                                                                             £1,950,000                               £425,000                                £350,000

                                                                                                                                                                                       U
                                                                                                                                                                                      O ND
                                                                                                                                                                                       FF E
                                                                                                                                                                                         ER R

        Mixed Holiday Park                  Woodland Touring Park                     Residential Park
             Cornwall                              Sussex                              South Wales
             DVN1390                              DVN1665                                DVN1754
            £1,395,000                            £850,000                              £3,500,000

                              U                                                                             U
                             O ND
                              FF E                                                                         O ND
                                                                                                            FF E
                                                                                                                     Holiday & Marina Business                   Mixed Holiday Park                      Static Holiday Park
                                ER R                                                                          ER R            Cumbria                                  Norfolk                                  Argyll
                                                                                                                             YRK1668                                  YRK1738                                 YRK1694
                                                                                                                              £695,000                               £2,950,000                                £895,000

        Mixed Holiday Park
            Derbyshire
                                              Static Holiday Park
                                                 Isle of Wight
                                                                                     Static Holiday Park
                                                                                           Cumbria
                                                                                                                     There has never been a better time to sell
             YRK1751                               DVN1757                                YRK1739
            £2,500,000                             £875,000                              £1,250,000
                                                                                                                     We have been working in the caravan and holiday park industry for over 40 years, and as market
                                                                                                                     leaders in our field we really do know the market inside and out. From caravans to cottages, tents
                                                                                                                     to tipis and park homes to pods we have experience advising on all aspects of this specialist sector.

                                                                                                                     Why now?

                                                                                                                     The caravan and holiday park market continues to capitalise on buoyant trading conditions with
                                                                                                                     demand for parks far outstripping supply. The unexpected shock of Brexit has had a positive effect ,as
                                                                                                                     the fall in the value of sterling has made UK holidays even better value for money, leading to many
                                                                                                                     holiday makers choosing to holiday closer to home.
          Touring Park                    Holiday Lodge & Static Park                 Residential Park
            Cornwall                            North Yorkshire                       West Yorkshire                 Park owners are reporting strong sales and bookings that are increasing turnover and profits. This
            DVN1715                                YRK1761                               YRK1744                     further strengthens demand, as existing owners seek to expand their portfolio of parks. We know
           £1,700,000                             £1,250,000                             £700,000                    numerous park operators who are seeking opportunities to expand and have successfully sold a large
                              U
                                                                                                                     number of parks on a confidential basis, minimising disruption to the business.
                             O ND
                              FF E
                                ER R
                                                                                                                     We are here to help

                                                                                                                     If you are thinking of selling now or in the future, please do not hesitate to contact us for advice on the
                                                                                                                     steps you can take to prepare your park for sale and a market appraisal, in confidence. We know the
                                                                                                                     active buyers in the market and presenting your park to the right audience is key to maximising value.

      Static &Touring Park                Holiday Lodge Development                 Park Home Estate
        North Yorkshire                           Shropshire                           Derbyshire
            YRK1748                                DVN1735                              YRK1746
           £1,290,000                              £450,000                            £2,300,000
Brexit Bounce Continues - Sanderson Weatherall
Planning Update                                                                                                      Nationwide Expertise

Local policy can overrule affordable housing             Time to power up - green energy options
                                                                                                                      Our specialist team offers truly national coverage across England, Scotland and Wales. During 2017 we
small sites exemption                                                                                                 visited parks all over the country and you can see the parks that we’ve sold, valued or visited on the map
                                                         Sustainability has become an increasingly important
                                                                                                                      below.
Owen Pike, planning expert in our Bristol office,        consideration in so many areas of our lives, and
comments on the changes and how they might affect        rightly so.   There has never been more of a need                                                                                      2017 Exhibitions
new residential developments.                            for energy optimisation and storage solutions. With
                                                         increasing global energy prices, consumer demand
“Previously, local affordable housing needed to          for products which help reduce and manage energy
be provided by major and minor developments,             costs, both domestic and commercial, is growing.
subject to viability considerations and tended to be     Did you know you can earn additional income from
a proportion of the total number of new units, as set    your surplus capacity?
out in local policy. In recent years, however, as the
development market has slowed, fewer affordable          The recent government announcement that Britain is
buildings have been built on grounds of viability.       to ban the sale of all petrol and diesel cars from 2040,
                                                         will inevitably lead to a rapid rise in the production of
“Local planning authorities were then forced to change   electric vehicles.  This in turn has led to questions
their approach because of a Written Ministerial          about where and how these vehicles will be charged
Statement (WMS) introduced in 2014; this stipulated      and how will the electricity be produced in a carbon
that affordable housing should not be sought on          friendly way.  Caravan parks will undoubtedly have
schemes comprising fewer than ten units or less          an important part to play, both in providing charging
than 1,000 square metres of floor space, unless in       facilities and in the production of sustainable green
National Parks or other sensitive landscapes.            energy.

“But some recent appeal decisions have given more        We have links with a number of specialist companies
weight to the WMS, whereby small sites have not          who can advise on all of these aspects including
had to make a contribution. Other decisions have         energy optimisation, energy generation, energy
favoured local policy requirements and accordingly,      storage and electric vehicle charging.   For further                                                                      We will see you at the BH&HPA Conference
small sites have been refused permission due to an       information contact Lee Southan (lee.southan@                                                                            on Wednesday 31st January and Thursday 1st
absence of affordable housing. The picture varies        sw.co.uk or 01884 256 741)                                                                                                 February at the QEII Centre, Westminster.
across the country.
                                                         If any of these schemes require planning permission,
“Moving forward, I believe that in areas where local     our planning consultant Owen Pike (owen.pike@
policies are based on recent evidence and/or where       sw.co.uk or 0117 338 1813) has extensive experience
small sites of less than 10 units have historically      of successfully obtaining consent for renewable
represented a large proportion of an authority’s         energy schemes across the UK.
new housing stock, the local planning authorities
will be able to give more weight to their own policy
                                                                                                                      Contact:
requirements, rather than the WMS, in an attempt to
ensure that sufficient affordable housing continues                                                                   adam.burkinshaw@sw.co.uk | andrew.bagnell@sw.co.uk | william.reynolds@sw.co.uk | lee.southan@sw.co.uk
to be provided.”
Brexit Bounce Continues - Sanderson Weatherall
sw.co.uk/caravanparks

                Devon T:01884 256 741 E: edwards.devon@sw.co.uk
                 York T:01347 822 005 E: edwards.york@sw.co.uk

             If you require any assistance or further information please do not hesitate to contact us:

                                            Sanderson Weatherall LLP

                         Devon Office: 45 Bampton Street, Tiverton, Devon EX16 6AH
                    Yorkshire Office: 165 Long Street, Easingwold, North Yorkshire YO61 3JB

This publication is intended as a general guide and although Sanderson Weatherall has made every effort to ensure
                         accuracy, they cannot accept liability for any errors of fact or opinion.
                          No part of this publication may be reproduced without permission.

                                  © Sanderson Weatherall LLP December 2017
Brexit Bounce Continues - Sanderson Weatherall
You can also read