Stamp Duty Shake-Up: Why More Buyers Are Turning to Holiday Park Homes

New tax changes spark surge in interest for second home alternatives

A wave of interest in holiday park home ownership has followed recent changes to stamp duty, with UK operator Lovat Parks reporting an 8% year-on-year rise in enquiries.

The changes, which came into effect on 1^st April 2025, have slashed the zero-rate threshold for main residences from £250,000 to £125,000, while second home purchases now attract significantly higher tax rates. Buyers acquiring an additional property face an extra 5% charge on purchases up to £125,000, with even steeper costs on higher-value homes.

Holiday park homes remain exempt

In contrast, holiday park homes are exempt from Stamp Duty Land Tax (SDLT), positioning them as a more affordable option for those looking for a UK-based escape.

Raoul Fraser, Founder of Lovat Parks, said:
“We’re seeing a clear shift in the market as buyers recognise the financial advantages of holiday park ownership. With the recent stamp duty changes, a traditional second home can incur thousands in additional taxes that simply don’t apply to our holiday lodges and homes.”

Raoul also highlighted the absence of council tax premiums—another common cost for second homeowners—making holiday park homes even more appealing.

📷Raoul Fraser the founder of Lovat Parks

Cornwall, Norfolk and beyond

Lovat Parks, which operates in Cornwall, Norfolk, Suffolk and the New Forest, is the UK’s first B Corp-certified holiday park group. It has received over 25 awards in 2024–25, including honours from the British Travel Awards and the Cornwall Tourism Awards.

The trend appears to be driven largely by older professionals, with the majority of interest coming from people aged 45 to 74—many of whom are new to holiday home ownership.

“Seventy percent of our owners are first-time holiday home purchasers,” said Raoul. “They’re often looking for a stress-free option that offers both personal enjoyment and potential rental income, without the additional tax burden now associated with traditional second homes.”

Brexit, domestic holidays and the appeal of sustainability

Post-Brexit travel restrictions—including the 90-day EU stay limit—are also pushing UK holidaymakers to stay closer to home, contributing to the appeal of domestic holiday properties.

Lovat Parks emphasises its commitment to community and sustainability. As a certified B Corp, the company says it actively supports local housing availability and invests in the communities where its parks are based.

Each park offers high-quality, dog-friendly accommodation with amenities such as dog showers, agility areas, and treat stations. The group also claims reductions in landfill waste and carbon emissions as part of its ongoing environmental efforts.

With domestic tourism remaining strong, Lovat Parks expects interest in holiday home ownership to keep growing as buyers adapt to the new tax landscape.