With farmers facing lots of changes recently, more and more are looking towards farm diversification projects to make use of farmland in different ways, helping secure financial stability for their families. 

Holiday letting is increasingly being considered as one such route, with UK staycations currently more popular than ever and this offering an opportunity to drive spend into local communities.

For farmers who are looking to take the leap, James Shaw, Managing Director at Sykes Holiday Cottages, has shared the top things to consider for a successful holiday letting journey.  

1. Consider what you want your holiday let to look like

Diversifying an empty building on your land into a holiday let can be a great route into the market.

Not only do these types of conversions mean retaining the original character of a building while adding modern amenities, but they can also be a quick way to get your new business off the ground, as you’re converting something which already exists.

However, if you’re keen to create something new, glamping pods and shepherd’s huts can also be a very profitable – and sustainable – option. In fact, glamping pods were among Sykes’ most booked properties in 2024.    

2. Factor in planning permission

It’s important to take planning permission into account when considering farm diversification, especially if you’re raring to go, as applications can take time to be processed. The government typically states that major planning permissions need around 26 weeks to be reviewed, with this dropping to 16 weeks for non-major applications.

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.

Likewise, even if you intend to convert a preexisting building, planning permission is still required, and you may also need to apply for a ‘change of use’.

3. Check your eligibility for extra help

Holiday letting can open the door to different funds and grants designed to help farmers get started with new projects.  

Different schemes run for different periods of time, so it’s important to keep up to date to ensure you’re not missing out on any extra financial support.

Becoming a holiday let owner with Sykes also gives you access to discounted rates from a number of suppliers across the UK, saving you money on everything from hot tubs to welcome packs.

4. Talk to experts

The thought of stepping into a new industry might feel daunting, but there are plenty of experts who can lend advice to ensure your holiday letting journey is as smooth as possible.  

Talk to insurers to get an idea of the potential risks involved and the cover you’ll need to protect yourself and your guests. Or, if you’re taking on a barn conversion, ask your chosen builder to visit your land as soon as possible to evaluate the likely costs and timelines.  

You could also use Sykes’ income calculator to find out how much you could earn from your holiday let, with this taking into account your location, property size and its amenities to give you a realistic picture.

5. Make sure you stand out

When confirming the plans for your holiday home, it’s important to think about what you can do to ensure it stands out.

This year, we anticipate holidaymakers will prioritise the experiences available to them while they’re on their staycation when booking their trip away, so giving your guests a behind-the-scenes look at farm life, including meeting and feeding animals, is a great way to tick this off.

You could also take it a step further by adding points of difference to your property, such as a hot tub, greenhouses for guests to pick their own produce, or onsite classes linking to your farm’s specialities.  

To find out more about farm diversification, visit https://www.sykescottages.co.uk/letyourcottage/advice/article/what-is-farm-diversification-and-how-could-holiday-letting-benefit-me