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Budgeting For Your Holiday Home: Understanding Costs Beyond the Purchase Price

Budgeting For Your Holiday Home: Understanding Costs Beyond the Purchase Price

Owning a holiday home is a dream for so many people. The prospect of having a place to escape to, unwind, and create lasting memories with loved ones is undeniably enticing.

However, before you take the plunge into the world of holiday home ownership, it’s crucial to understand that there are more costs involved than just the price or even the costs associated with financing the initial purchase. In this blog post, we’ll explore the various expenses that surround buying a holiday home, ensuring that you make an informed decision.


All of our lodges are turnkey ready, meaning they have already been furnished and supplied with a host of modern appliances – so you can just bring yourself! However, if you do choose to add some of your own touches or change out the furniture choices, this would be at an additional cost.

Annual Site Fees

When buying a holiday home, most parks will have an annual site fee that covers the maintenance of communal areas and facilities, so you can enjoy every visit to the fullest. This can include:

  • Landscaping
  • Grass Cutting
  • General park maintenance


This can also include security, so you and your family can have the peace of mind you are being kept safe on the property. The amount can vary but, at Encore, our site fees range from £1,800 to £5000 depending on the location. 

Running Costs

Much like your main residence, your holiday home comes with bills and insurance costs that can vary from year to year, or between different providers. This includes:

  • Gas bills
  • Electricity bills
  • Water bills
  • Insurance
  • Business rates – if you plan to let your lodge out during the year

Although these fees can vary depending on your provider, location and usage, contact us and a member of our team can give you an estimated amount.

Insurance for Holiday Homes

Holiday homes differ from your primary residence in a few ways, including what sort of insurance you can buy. This is because of how long you are in each of them throughout the year. You spend most of your time in your home, meaning it is less likely that a burglary will occur, or that you wouldn’t notice a water leak until it got very serious. This is why specialist holiday home insurance can be more expensive.

However, there are ways to save money on your holiday home insurance. Firstly, we recommend you shop around and get multiple quotes from different providers. This means you don’t miss out on a more affordable policy. However, don’t compromise cover for cost, as it could leave you worse off if something were to happen. Therefore, weigh up the benefits of each policy with its costs. It is more time consuming but in the long run it could save you money and hassle down the line. You can also do the following to get the most for your money when it comes to holiday home insurance: 

  • Combine your building and contents insurance into one plan
  • See if any of your policies will provide discounts if you upgrade your security measures, for example by installing a burglar alarm.

Your insurance could also increase in price if you are considering letting out your property, as there would be more people going through the home without the owners present – presenting a higher risk of burglaries or damage.

Business Rates for Holiday Homes

Although Encore offers a managed letting service, you will still need to pay the fees associated with letting out your holiday home, if you choose to do so. However, this cost can be offset by the money you gain by letting out your property. For more information on our managed letting service and how it can fit into your financial plan, contact us for more information. 

Another cost to consider if you are letting out your property during the year is maintenance. Keeping the property clean and everything in working order is time-consuming and if you don’t live nearby, hiring someone to do this for you could potentially be expensive.

Although owning a holiday home can come with additional costs, it has the potential to save you money on holidays abroad. Furthermore, having a place to getaway at the drop of a hat means whenever you’re feeling the strain, you have a place to unwind. With the increase in flexible working arrangements, you could even take a holiday without taking leave from your job!

If the idea of owning your own little piece of paradise appeals to you, visit our website or contact us today to arrange a viewing for one of our lodges.