Campaigners have urged the UK government to address concerns surrounding the holiday park industry, which has been described as a 'wild west' environment.

Nearly 2,000 individuals have joined a group legal action alleging they have suffered significant financial losses due to mis-sold static caravans and unfair pitch fees.

The Holiday Park Action Group, spearheading this legal initiative, reports a growing number of claimants, many of whom have reportedly lost their life savings and been forced to sell their homes as a result of steep financial losses.

The group is pursuing compensation from holiday park operators, arguing that caravans were sold at inflated prices while sites imposed steep increases in pitch fees.

These practices often compelled buyers to sell their caravans when they could no longer afford the rising costs.

Carole Keeble, founder of the Holiday Park Action Group, stated, "Nobody controls this industry.

It’s like the wild west, they’re free to do what they like, how they like.

People losing their life savings – that is the norm."

The group's legal action includes two primary claims: one challenging the 'unfair and legally unenforceable' pitch fees, which they argue rise excessively and without proper notice, and another addressing the allegations that buyers were not adequately informed about the substantial depreciation in caravan value.

Caravans, like vehicles, tend to depreciate quickly due to wear and tear and changing designs.

Many parks have rules mandating the removal of caravans after they reach a certain age, impacting their desirability.

Buyers have frequently reported selling their units back to park owners for a fraction of the initial purchase price.

Unlike residential park homes, holiday park lodges and caravans are designated for short-term use and cannot be lived in year-round, compounding the financial challenges for owners.

Sally Nicholls, 70, recounted her experience after losing more than £50,000 on a holiday lodge purchased at Tattershall Lakes Country Park, operated by Away Resorts, in 2020. She had anticipated generating rental income to support her retirement but faced escalating costs, including pitch fees and guest passes.

“Within months, the caravan park started pushing up the price of pitch fees, as well as the cost of the passes guests needed to use on-site facilities, making the venture unfeasible,” Ms. Nicholls stated.

The increase in pitch fees at her holiday park rose from £4,800 in 2020 to nearly £7,000 in 2023, alongside a significant rise in park pass costs from £80 to £200.

In the end, she sold the lodge for £15,000, a stark contrast to her original investment of £69,000.

Away Resorts responded to claims related to the holiday park industry's economic conditions, emphasizing the challenges faced by the sector due to rising operational costs exacerbated by the pandemic and increased living expenses.

They affirmed their commitment to maintaining a professional approach to holiday home ownership.

Hugh Preston KC, representing the group, noted the lack of proper regulations governing holiday parks compared to residential mobile homes, highlighting borrowers' difficult position when faced with rising fees in the context of depreciating asset values.

Keeble mentioned that many affected individuals are elderly and vulnerable, often purchasing with the hope of a secure retirement investment.

Nicholls expressed her willingness to raise awareness of the issues, emphasizing the urgent need for regulation in the industry.

A spokesperson for Away Resorts reiterated their commitment to providing prospective buyers with comprehensive information and clear contract terms to facilitate informed decisions.

They also cited the necessity for adjustments in pitch fees in response to the broader economic landscape.