When it comes to buying a holiday home, it’s important to understand the legal differences between a holiday home and a residential home.
The two categories serve very different purposes and as such, rules, regulations and taxes are unique to each category. Understanding the differences between a holiday home vs residential home is key to making the right decision for your lifestyle and long-term plans.
Purpose and Use
The main difference between a holiday home and a residential home lies in how they are used.
A holiday home is primarily used for holidays and getaways. It’s a second home, often located in a touristic area like the coast, countryside or near tourist attractions. Holiday homes are typically used a few times a year, allowing you to escape for short stays whenever you need a break.
A residential home, on the other hand, is your main place of residence. It’s where you live permanently, often in a location that’s close to work, schools and daily amenities. Residential homes are designed for long-term living, offering everything you need to settle down and build your life.
The differences between holiday home vs residential home comes down to how often and for what purpose you plan to use the property.
Location
The location of a holiday home vs a residential home is another big factor to consider.
Holiday homes are often found in scenic or tourist-friendly locations, such as seaside towns, rural retreats or mountains. Proximity to nature or local attractions is key and they are usually far from bustling cities.
With residential homes, on the other hand, the location is all about convenience. You’ll find these homes in residential neighbourhoods, near schools, workplaces and local amenities like supermarkets and healthcare facilities. While scenic surroundings are always nice, practicality usually comes first when choosing a location for a residential home.
Living Requirements and Legal Considerations
Living full-time in a holiday home comes with restrictions, while a residential home is designed for year-round living.
Holiday Home: You are generally not permitted to live in a holiday home full-time. Most holiday parks or areas with holiday homes have specific guidelines and restrictions, which limit how long you can stay throughout the year. These homes are intended for short stays and may not offer the same level of infrastructure or services as residential homes. You also need to adhere to Local Authority conditions in the area for holiday homes.
Residential Home: There are no restrictions on living in a residential home, as they are designed for permanent residency. You’ll have access to all the infrastructure required for daily living, including essential services such as healthcare, schools and transport links.
Costs and Maintenance
When comparing holiday home vs residential home, the costs and upkeep differ based on usage and purpose.
While typically holiday homes are more affordable than residential homes, holiday homes come with additional costs and sometimes higher insurance premiums. You’ll also need to account for travel costs to and from the property.
A residential home generally involves higher upfront costs due to the permanent nature of the property. However, ongoing costs are more predictable, with regular bills for utilities, council tax and maintenance. You may also have access to mortgage options, which can make financing easier for long-term living.
Flexibility
Flexibility is another key difference between a holiday home and a residential home.
Holiday homes offer flexibility in terms of use. You can visit whenever you want, whether it’s a weekend getaway or a longer stay. Some owners even choose to rent out their holiday homes when they aren’t using them, providing an additional income stream.
A residential home is less flexible since it’s your primary residence. While you could rent out your home or part of it, it’s usually a place where you settle down for the long term, with a focus on stability and routine.
You Cannot Live Residentially In A Holiday Home
The main difference between the two property categories is that you cannot use a holiday home as your residential home, at least not on one of our parks. The rules and regulations that are apply are different to holiday homes and you’ll fall foul of these rules if you use the holiday home as a permanent residence.
If you’d like to understand more about the differences, please don’t hesitate to get in touch with a member of the Wyldecrest Holiday Parks team. We have a selection of holiday homes across England, Scotland and Wales to suit all holiday types and budgets.
