Rising property prices and a critical shortage of traditional bungalows are pushing a growing number of over-55s towards an affordable housing alternative: park homes. With average values now at £144,748, this option is gaining significant traction as a solution for downsizers and those seeking accessible, ground-floor living.
The Bungalow Crisis Driving Change
The UK faces a severe scarcity of single-storey homes. With only 9% of the housing stock being bungalows—approximately 2.7 million properties—and new construction at historic lows, demand vastly outstrips supply. This has driven the average price of a bungalow to between £335,000 and £340,000 in 2025, placing it out of reach for many.
This market gap is creating what experts call a "genuine housing crisis" for those who need accessible accommodation. Planning policies that favour higher-density developments over bungalow construction have exacerbated the problem, leaving a void that park homes are now filling.
Park Homes: An Affordable and Practical Solution
The park home market is responding with strong growth, recording a 6.7% increase in average values to reach £144,748 this year. This price point is less than half the cost of a traditional bungalow, offering the same key benefit of single-storey accessibility.
Kevin Minnear, Head of Underwriting at specialist provider Compass Insurance, reports increased demand for their services as interest surges. "Park homes offer the same accessibility benefits with the added advantages of community living and significantly lower costs," he explains. "We’re seeing increased interest from buyers who previously would have sought bungalows."
Lifestyle Benefits Beyond Affordability
For many, the appeal extends beyond mere affordability. Nathan Goodyear, Managing Director of Berkeleyparks—which operates 59 residential sites—notes that people are seeking spacious, secure homes within a supportive community.
Modern park homes are typically move-in-ready with contemporary fittings and private garden space, avoiding the renovation often required with older bungalows. Minnear highlights the "compelling combination of affordability, community spirit, and low-maintenance living" that is becoming harder to find in the conventional property market.
The trend signifies a substantial shift in housing choices for older demographics. As the bungalow shortage persists, park home living is solidifying its position not just as a budget alternative, but as a positive lifestyle choice that delivers financial freedom and a ready-made community.
