Earn £35k per year by Diversifying your Farm Through Holiday Letting
Perhaps it’s time to transform that old barn into a charming retreat, or use your empty land to set up glamping pods for a unique holiday experience?
As the country's leading expert in holiday letting, Sykes Holiday Cottages has compiled key insights and advice to help you start and run a successful holiday business on your farm.
Read on to discover how holiday letting could be the perfect path for you on your journey towards diversification.
How much can I earn from holiday letting?
Many farm owners are increasingly turning to holiday letting to boost their income. There are numerous success stories and a wide array of options available for those considering this diversification strategy.
Our Holiday Letting Outlook Report shows that the UK holiday let industry is thriving, with the average turnover for a holiday let reaching £24,500 in 2023. This figure includes diversified farm properties like pods, shepherds' huts, and barn conversions. Farm Stays emerged as the third highest-earning property type in 2023, generating an average income of £35,000; 43% higher than the overall average income for holiday lets.
Sykes Holiday Cottages can help you calculate your potential earnings with our Holiday Let Income Calculator.
What are the benefits of holiday let farm diversification?
Holiday letting can offer several benefits to farmers. It provides a steady income, and it makes efficient use of existing assets, such as land and buildings that may otherwise be underused or not in use at all. It can also create employment opportunities in rural areas, boosting the local economy.
Farm diversification by holiday letting has become an increasingly significant strategy for UK farmers seeking to supplement their traditional agricultural incomes. In the face of fluctuating markets and changing subsidy regimes, many UK farmers have turned to diversification to stabilise and increase their revenue streams. By converting redundant farm buildings and land into holiday accommodation, farmers can attract tourists seeking rural retreats.
Moreover, it fosters sustainability by repurposing existing farm assets and promoting eco-friendly practices such as renewable energy installations and conservation efforts. Environmental consciousness is something that is becoming more prominent in the holiday letting industry, with approximately 1,000 of our properties now featuring EV charging points, and 27% of owners intending to incorporate new sustainable features into their holiday homes in the coming years.
Do barn conversions make good holiday lets?
Barn conversions can be an excellent option for farm diversification through holiday letting, offering several advantages. These conversions capitalise on existing structures, reducing the need for new construction and preserving the rural charm that many holidaymakers seek. Barn conversions blend rustic charm with modern amenities, creating unique, attractive accommodation that stands out in the holiday rental market.
Financially, barn conversions can be highly lucrative. On average, a barn conversion yields an income of £28,000 annually, significantly boosting farm revenue. This income can be higher and more stable than traditional farming profits, providing a reliable supplementary income stream.
Additionally, barn conversions can attract a diverse range of guests, from families to couples seeking a romantic getaway; further ensuring a steady occupancy rate. With the UK's strong demand for rural getaways, barn conversions can be a smart and profitable choice for farmers looking to diversify their operations and secure their financial future.
What financial support is there?
The UK government has supported farm diversification through various grants and funding schemes aimed at rural development. Schemes such as the Rural Development Programme for England (RDPE) have provided financial assistance to farmers looking to diversify, including those establishing holiday lets. This support has been crucial in enabling farmers to invest in necessary renovations and marketing.
However, successful diversification requires careful planning and investment. Farmers must consider factors such as the initial cost of conversion, ongoing maintenance, marketing, and the competitive landscape. Moreover, they must ensure that their ventures comply with local planning regulations and environmental standards.
Contact your local planning office for further information and advice.
Summary
In conclusion, farm diversification via holiday letting offers some compelling advantages in today's market. Beyond supplementing traditional farming income, it allows farmers to tap into the thriving tourism sector and meet evolving consumer demands.
By converting farm buildings into charming holiday accommodations like barn conversions or glamping sites, farmers can attract a wider range of guests seeking unique, rural experiences. This diversification not only enhances the property's profitability, but also contributes to rural economic resilience by creating jobs and supporting local businesses.
To read more holiday letting information and advice, visit our Holiday Let Information Centre.
If you need help with the next steps of your holiday letting journey, or maybe just need some advice, contact our property experts today who can help answer any queries you may have.
Get in touch via the Sykes website, call us on 01244 746601 or email us at letwithsykes@sykescottages.co.uk.
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