Quick Checklist: Holiday Park Unfair Contract Terms

Check your holiday park licence agreement for unfair terms: fee rises, sale restrictions, forced upgrades and more. A quick plain-English checklist.

HOLIDAY PARK OWNERS

10/1/20264 min read

Quick Checklist: Holiday Park Unfair Contract Terms

If you own a static caravan or holiday lodge, your licence agreement with the park decides almost everything: what you pay, how long you can stay, who you can sell to and when the park can ask you to leave. Most owners sign it once and never read it again, until something goes wrong.

The good news is that holiday park licence agreements are consumer contracts. Under the Consumer Rights Act 2015, a term that is unfair is not binding on you, even though you signed it.

Get your licence agreement out, along with any park rules it refers to, and work through this checklist.

The checklist: clauses to look out for

☐ 1. Site fees the park can raise by any amount

Look for wording like "fees will be set annually at the park's discretion" with no formula, no cap and no reason required. A clause that lets the park increase the price however it likes, without giving you a real right to walk away, is a classic warning sign.

☐ 2. The park can change the agreement whenever it wants

Watch for clauses allowing the park to "amend these terms" or "update the park rules" at any time, without a valid reason set out in the contract. You agreed to one deal; a clause that lets the park rewrite it on its own is open to challenge.

☐ 3. Age or condition rules decided "in the park's opinion"

Many agreements say your caravan must be replaced once it reaches a certain age, or when the park decides it is no longer in acceptable condition. Pay particular attention where the decision is left entirely to the park, with no objective standard and no way for you to dispute it.

☐ 4. Restrictions on selling your caravan

Check whether you must sell back to the park, whether the park can veto any buyer without giving reasons, and how much commission it takes on a private sale. Restrictions that leave you with no realistic way to sell on the open market deserve a close look.

☐ 5. The park can end the agreement easily, but you can't

Compare the park's rights to terminate with yours. Short notice periods, termination for minor breaches, or rights that only run one way can all point to a significant imbalance.

☐ 6. You must use the park's own services

Some agreements require you to let only through the park's scheme, use only park-approved contractors, or buy insurance or utilities through the park. These aren't automatically unfair, but they can be if the charges are excessive or you weren't told about them up front.

☐ 7. An "entire agreement" clause that wipes out sales promises

A clause saying the written agreement replaces "all previous statements or representations" can be used to argue that what the salesperson told you doesn't count. It doesn't automatically protect the park if you were misled, but it's worth knowing it's there.

☐ 8. Heavy charges for leaving

Look for removal fees, disconnection charges, exit fees or penalties when your agreement ends or you sell. Charges that are out of proportion to the park's real costs may be challengeable.

☐ 9. Terms you never saw before you signed

If the agreement relies on park rules, schedules or other documents you weren't given before you committed, note that. Being bound by terms you had no real chance to read is on the law's list of potentially unfair terms.

☐ 10. Small print and jargon you can't follow

Important terms, especially about price, must be written in plain, intelligible language and be easy to find. If a key clause is buried or confusing, that matters in its own right.

How the law decides whether a term is unfair

Under the Consumer Rights Act 2015, a term is unfair if, contrary to good faith, it causes a significant imbalance in the parties' rights and obligations to the consumer's detriment. In practice, that means asking:

Is it one-sided? Does it give the park rights you don't have, or take away rights you'd normally expect?
Is it transparent? Was it clear, prominent and explained before you signed?
Is it on the "grey list"? The Act includes a list of the kinds of terms that may be unfair, such as allowing the trader to change terms or prices on its own, or binding you to terms you had no chance to read.

Two more points work in your favour. If a term could mean two things, the meaning most favourable to you usually applies. And a term that is found to be unfair doesn't bind you, while the rest of the agreement normally carries on.

Ticking a box on this checklist doesn't automatically mean a term is unfair. Whether it is depends on the exact wording, the rest of the agreement and the circumstances when you signed. But each tick is a good reason to look more closely.

What to do if you've ticked a box

Highlight the clause and note the page and clause number.
Find out what you were told about it when you bought: brochures, emails and your own notes.
Raise it with the park in writing, quoting the clause and explaining why you think it's unfair. Keep copies.
Talk to other owners on your park. If the same clause affects everyone, a joint approach can carry more weight.
Get advice from Citizens Advice, which can also pass concerns to Trading Standards, or from a solicitor experienced in holiday park disputes.

Frequently asked questions

Is my holiday park licence agreement covered by consumer law?

If you bought your caravan or lodge for your own holiday use, your agreement with the park is usually a consumer contract, so the Consumer Rights Act 2015 applies.

Can a park put my site fees up every year?

Usually yes, if the agreement allows it. The question is whether the way increases are decided is clear and fair. A transparent formula is very different from an unlimited right to set any price.

If a term is unfair, does the whole agreement fall away?

No. Normally only the unfair term stops binding you; the rest of the agreement continues.

Does the Mobile Homes Act apply to my licence agreement?

Usually not. The Mobile Homes Act 1983 mainly protects residential park home owners. Holiday owners normally rely on their licence agreement and general consumer law, which is why checking for unfair terms matters so much.

Go deeper

If you think the problem goes beyond the small print, and you were mis-sold your caravan in the first place, see our guide to the 10 signs your holiday caravan was mis-sold.

Mis-Sold or Misled? The Insider Edge Guide to Holiday Caravan Ownership Rights covers unfair terms, fee increases, resale restrictions and buybacks in plain English, so you know exactly where you stand before you raise it with the park.

This article is general information, not legal advice. Whether a particular term is unfair depends on its wording and your circumstances. Take advice on your own situation.