Park home living gains momentum as market shows strong growth signals

Compass Insurance highlights growing demand for specialist park home insurance amid robust market performance and acute bungalow shortage

The UK park home market is showing strong growth signals, with average property values increasing 6.7% to £144,748 in 2025, indicating growing appeal for this affordable, community-focused housing option that offers a vital solution to Britain’s critical shortage of single-storey homes.

Compass Insurance, a leading specialist provider of park home insurance, reports increased demand for its services as more Britons discover the lifestyle and financial benefits of park home living across the UK’s extensive network of residential sites.

Addressing the UK’s single-storey housing crisis

With approximately 2.7 million bungalows representing just 9% of the UK’s total housing stock and new bungalow construction at historic lows, Britain faces a severe shortage of accessible single-storey living options. This scarcity is driving up bungalow prices to an average of £335,000-£340,000 in 2025, putting traditional single-storey homes beyond the reach of many seeking accessible accommodation.

Park homes emerge as a practical and affordable alternative, offering the same single-storey accessibility benefits at an average price of £144,748 – less than half the cost of a traditional bungalow. For the growing number of downsizers, retirees, and those with mobility considerations seeking ground-floor living, park homes provide an essential housing solution amid planning policies that favour higher-density developments over bungalow construction.

“The bungalow shortage has created a genuine housing crisis for those who need single-storey living,” explains Kevin Minnear, Head of Underwriting at Compass Insurance. “Park homes offer the same accessibility benefits with the added advantages of community living and significantly lower costs. We’re seeing increased interest from buyers who previously would have sought bungalows but are now discovering the superior value and lifestyle that park homes provide.”

Strong market performance signals growing appeal

Park home values have shown robust growth, with average prices increasing 6.7% to £144,748 in 2025, up from £135,712 in August 2024. This growth comes despite a 2.2% decrease in availability since the start of 2024, indicating healthy demand for this housing option.

“We’re seeing genuine enthusiasm for park home living,” says Minnear. “Our clients are choosing this lifestyle for its compelling combination of affordability, community spirit, and low-maintenance living – benefits that are increasingly difficult to find in the traditional housing market.”

Industry analysts expect 2025 to bring increased supply, with new park home sites launching across the country to meet growing demand and provide much-needed alternatives to the scarce bungalow stock.

Distinctive lifestyle advantages beyond accessibility

Park home residents consistently report numerous benefits that set this housing option apart:

• Strong community bonds: Tight-knit neighbourhoods fostering genuine friendships and mutual support
• Low maintenance living: minimal upkeep requirements
• Financial advantages: No stamp duty charges and lower overall housing costs
• Efficient transactions: Faster, more streamlined buying and selling processes
• Accessible design: Single-storey layouts ideal for those prioritising accessibility
• Peaceful settings: Often located in countryside locations with access to nature

Meeting demand where bungalows cannot

The sector particularly appeals to downsizers and retirees seeking to release equity from larger properties while maintaining independence. With bungalow construction failing to meet demand and existing stock commanding premium prices, park homes fill a crucial gap in the market for accessible, single-storey living.

The single-storey design and community focus align perfectly with the preferences of the UK’s growing over-55 demographic, many of whom find themselves priced out of the traditional bungalow market.

Nathan Goodyear, Managing Director of Berkeleyparks, which owns 59 residential park home sites across England and Wales: “We’ve seen demand rising amongst an older demographic. People are looking for a spacious, affordable, and accessible home, with the added benefit of community and security.

“As new build bungalows become increasingly scarce and older properties often require significant renovation, park home living offers an attractive alternative for those seeking single-storey accommodation. Modern park homes provide spacious, move-in-ready properties with contemporary fittings and appliances, combined with private garden space and access to a supportive community environment.

“For many residents, the transition to park home living represents a positive lifestyle change, with the convenience of new-build accommodation and the benefits of community living proving particularly appealing.”

Specialist insurance for unique needs

“Park homes are purpose-built for year-round residential living, which means they require insurance that recognises their specific characteristics,” explains Minnear. “Our policies are designed exclusively for permanent residential use, offering comprehensive protection including alternative accommodation cover and ‘new for old’ replacement options.”

Compass Insurance provides two coverage levels – Essentials and Extra – with the market’s most competitive standard excess rates at just £50, allowing customers to select protection that matches their individual needs.

This article was published on 13th November 2025. It was accurate when posted, but things may have changed over time, and some links might not work anymore. If you have any questions or concerns, feel free to get in touch with us.