Sykes Holiday Cottages has said higher demand, coupled with the “soaring costs” of agriculture, has prompted many British farmers to look into new ways to grow and diversity their income.
This includes branching out into other business ventures, like holiday letting.
Chief operating officer for the cottage holiday provider, Bev Dumbleton, shared advice on five things farmers should consider when exploring this aspect of farm diversification.
Agricultural commitments
Dumbleton’s first tip is for farmers, is to prioritise balancing holiday letting with their agricultural commitments.
“Providing the very best service in holiday letting can take time and effort, particularly alongside the copious demands of farming, but you don’t have to do it alone,” she said.
Dumbleton urged farmers to take adequate time to assess how they will juggle their farming commitments.
She also highlighted that local businesses can help support farmers with things live changeovers and maintenance.
Calculate income
Dumbleton said farmers must consider the financials of holiday letting and work out the likely expenses and income.
“Holiday let income levels continue to rise as more Brits choose to holiday at home, but incomes vary significantly depending on the location and property on offer,” she said.
Data from Sykes Holiday Cottages has revealed that, on average, owners invest £7,400 in their holiday let each year.
This includes everything from property maintenance and changeovers to energy bills and taxes.
Attracting bookings
Farmers should consider how they will attract bookings of their letting, Dumbleton said.
“Staycationers are always looking for something new and different in a holiday let, making the possibilities endless,” she said.
“You could convert an existing farm building such as a barn, stable, or cowshed, or get adventurous with a yurt or shepherd’s hut.
“Cabins are particularly popular with holidaymakers right now, with data from Sykes revealing that bookings for this type of accommodation are up 116% year on year.”
Farmers could also consider adding a hot tub to the shepherd’s hut, as these are particularly appealing to future guests, she said.
Dumbleton said, once farmers have made the decision on the holiday let they will offer, they should consider what other ways they could make the offering “shine” to guests.
“You could further diversify with a farm shop selling your produce, or offer workshops in popular crafts such as wreath or candle making,” she said.
Planning permission
Dumbleton said it is important for farmers to take planning permission into account when considering farm diversification.
“If you’re introducing a new structure like a cabin or glamping pod to your farm, you’ll need to apply to your local council for permission,” she said,
“Likewise, even if you intend to convert a pre-existing building, planning permission is still required, and you may also need to apply for a ‘change of use’.”
Seeking advice
“Herding sheep is quite different to hosting humans so it’s a good idea to get the advice of professionals before you set out on your holiday letting journey,” Dumbleton said.
She urged farmer to talk to insurers to get an idea of the potential risks involved and the cover they’ll need to protect themselves and their guests.
“Or, if you’re taking on a barn conversion, get a local builder in as soon as possible to evaluate the likely costs and timelines.
“It’s also wise to consult a letting agent to discuss how much income adding a holiday let to your farm could generate, and potential amenities to consider adding to enhance that even further.”
