What is hindering your market at the moment?
Trading performance across the caravan parks sector has returned to pre-pandemic levels after a post-pandemic peak in 2022. This is partly due to inflationary pressures, but a hangover was inevitable after the pandemic had stimulated massive trading growth.
Trading levels remain consistent with long-term expectations and the sector is expected to demonstrate its resilience due to the diversity of income streams and its ability to adapt. From a transactional perspective, a hangover was also predictable after a period of peak market activity, and this was not helped by interest rate rises earlier in the year. However, as asset-backed trading entities with inherently limited supply and consistently sustained demand, the sector's fundamentals remain robust.
What opportunities are you seeing in your market at the moment?
Despite the challenging economic climate, the caravan parks team in Bristol agreed four sales in Q1 of 2024. These transactions covered a broad spectrum, from a private sale with a guide price of £2.75 million to a regional sale with a guide price of offers over £12.5 million.
With competitive bidding for each of these sales, there are buyers out there who are ready, willing, and able to purchase caravan parks. This presents a valuable opportunity for those looking to sell.
What’s the biggest change you have seen in your sector throughout your career?
Since I started advising in the sector around ten years ago, I have always been impressed by its ability to adapt. This is perhaps best demonstrated by the evolution of the humble caravan itself, transforming from functional aluminium boxes to exceptional living spaces that would not look out of place on an episode of Grand Designs.
It’s remarkable to witness the level of innovation that can be contained within what is fundamentally a box measuring no larger than 20.0m by 6.8m and capable of being transported in just two parts. In fact, many customers are unaware that they are staying in a caravan.
What are your predictions for the next 12-18 months, in your sector?
If Q1 of 2024 is anything to go by, I expect a significant uptick in transactional activity following a very quiet 2023. We have a roster of buyers with active requirements, primarily regional operators who are looking to expand their portfolios, have a proven track record in the sector and the backing of financial institutions.
Within your sector, how does Bristol (or SW in general) compare to other regions (and/or to London)?
The South West is home to the highest concentration of caravan parks in the UK, which is hardly surprising given the region’s exceptional and diverse environment. From the stunning coasts of Cornwall, Devon, Dorset, Somerset, and Pembrokeshire to the breathtaking landscapes of the Brecon Beacons, Dartmoor and Exmoor, the area offers unparalleled natural beauty. It really is a privilege to work in this region and as a Somerset native, there is nowhere I would rather be.
Within your sector, how does Bristol (or SW in general) compare to other regions (and/or to London)?
The South West is home to the highest concentration of caravan parks in the UK, which is hardly surprising given the region’s exceptional and diverse environment. From the stunning coasts of Cornwall, Devon, Dorset, Somerset, and Pembrokeshire to the breathtaking landscapes of the Brecon Beacons, Dartmoor and Exmoor, the area offers unparalleled natural beauty. It really is a privilege to work in this region and as a Somerset native, there is nowhere I would rather be.