Residential Park vs Holiday Park: What's the Difference?
Both types of park can look the same from the road: rows of well-kept homes, similar landscaping, similar facilities. What actually separates them is the site licence, and that single document decides how you're allowed to live there.
The core difference
A residential park carries a licence for permanent occupation. Live there 365 days a year, and it can be your only home. A holiday park doesn't carry that right. You can stay there under the terms of the licence, but you need another main residence elsewhere, and there's usually a cap on how long you can stay at any one time.
Some parks run as mixed-use, with both residential plots and holiday homes on the same site. Don't assume, always check which applies to the specific home you're buying.
How to check which type a park is
Every park operates under a site licence issued by the local council, and it sets out exactly what's allowed: how many homes can sit on the park, what facilities and safety standards apply, and whether the licence covers residential use, holiday use, or both.
Ask to see the licence, or check with the council's licensing department directly. Don't rely on word of mouth from the park or a previous owner. Confirm it yourself before you commit to buying.
Build standard
Homes built for residential use meet the BS3632 standard, covering insulation and safety for year-round living. Holiday homes are usually built to the lighter EN1647 standard instead, fine for short breaks but not for full-time living, and it's illegal to live permanently in a home that doesn't meet BS3632.
Some newer holiday lodges are built to BS3632 anyway, since a 12-month site licence makes a better-insulated home worth having even without a full residential licence. That build standard alone doesn't upgrade the site licence; the two are separate things. Read more on whether you can live in a static caravan year-round.
Legal protection
Residential park homes fall under the Mobile Homes Act 2013, giving owners a clear legal framework covering pitch fees, rules and eviction protection. Holiday parks sit outside that Act, so holiday homeowners don't get the same statutory protection.
A few other practical differences follow from that:
- Holiday licences usually cap your stay, sometimes to a maximum number of consecutive days; 60 is common.
- Holiday home pitch agreements typically run for a fixed term, perhaps 10, 25 or 50 years, whereas a residential pitch has no fixed end date.
- Holiday homes don't attract council tax in the normal way; you contribute to the park owner instead, as set out in your contract. Residential park homes are usually Band A for council tax like any other permanent home.
Letting out a holiday home
If you let a holiday home commercially, be aware the old tax perks for doing so have gone. The Furnished Holiday Lettings regime, which used to give favourable tax treatment if a property was genuinely available to let 210 days a year and actually let for 105 of those, was abolished from 6 April 2025. Holiday lets are now taxed the same way as any other rental property. Get current advice from an accountant before assuming any of the old rules still apply, and check Sykes Cottages if you're weighing up letting a holiday home out.
Insurance
Residential and holiday homes need different insurance. Residential cover typically includes alternative accommodation if the home is destroyed, since it's your only home. Holiday home insurance doesn't, because you're assumed to have somewhere else to live. Letting a holiday home out usually means adding business and public liability cover on top.
Get the licence type wrong and here's what happens
Using a holiday home as a full-time residence when the site licence doesn't allow it breaches your agreement with the park, and it's treated as a serious breach. Worst case, that can mean eviction. Check the licence before you buy, not after.
What's the main difference between a residential and holiday park? The site licence. Residential parks allow permanent, year-round living. Holiday parks don't, even if they're open 12 months of the year.
Can I live in a holiday home full time? Not unless the site licence specifically grants residential status. Check with the park or the council's licensing department before you buy.