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Bodfeurig Farm Cottage in Anglesey

If you are a farmer or landowner and are looking to generate some extra income, then utilising existing buildings and land and diversifying into holiday letting could be an option for you.

According to Farmers Weekly, “Higher demand, coupled with concerns about post-Brexit support for agriculture, has made a farm diversification into letting cottages, barns, annexes and apartments more attractive”.

With the current demand for staycations being at an all-time high, now is such a great time to start holiday letting.


What is Farm Diversification?

Farm diversification for existing farming businesses involves generating further revenue through a new avenue, such as holiday letting.

We are lucky that North Wales is surrounded by so much land and farmland. A lot of these farms have old sheds, unused barns, outbuildings and space which can be great for holiday letting!

Whether it be a barn renovation, converting an outbuilding or making space for some glamping pods or shepherd’s huts, there are plenty of options for you.


What Are My Options for Farm Diversification?

Building conversions

One of the most popular options is to convert an existing outbuilding such as a barn, stable or cowshed. Be creative! Customers love finding quirky stays.

Having an existing structure in place makes it easier in terms of turnaround time, although you may want to do some due diligence with a surveyor in terms of the condition of the building before proceeding.

These types of conversions are always popular with guests, as they offer a more traditional, rural holiday experience.

Some great examples can be seen here: The Outbuildings (Sleeps 14), Bryn Eira (Sleeps 10) & Hen Gilfach Stables (Sleeps 2)

 

The Outbuildings in Llangaffo

The Outbuildings – Ref: 1048267

Glamping & Shepherds Huts

In recent years, shepherd huts have increased in popularity. The fact many can be transportable makes them ideal to move around farmland to find the perfect spot for a holiday.

This is one of the most popular options for couples looking for a getaway. You can be really creative when it comes to furnishing it!

Glamping pods tend to be the more luxurious alternative to shepherd’s huts, but still retain that quaint & quirk edge.

Some great examples can be seen here:  Shepherds Huts – Just The Ewe of Us (Sleeps 2) & Llety’r Bugail (Sleeps 2)

Glamping  – Orchard Pod (Sleeps 2) & Woodland Pod (Sleeps 4)

Orchard Pod in Corwen, Denbighshire

Orchard Pod – Ref: 1053193

Log Cabins & Lodges

Log Cabins & Lodges are a great option for those looking for something simple and effective to add to their existing land.

Some great examples can be seen here:  Ffrwd Lodge (Sleeps 6)


What Are the Tax Benefits?

As with any other business, holiday letting can bring a number of beneficial tax benefits.

If you register your property and meet the criteria to be classed as a Furnished Holiday Let (FHL), then you may be able to claim capital gains tax relief and small business rate relief as well as a number of other tax-related benefits as outlined in our Furnished Holiday Let Tax Guide.


Will I Need Planning Permission?

As with any building project you will need planning permission. As with any building project you will need planning permission. It may also be necessary to apply for a change of use if you plan to convert an existing building. The council in your area will be able to provide you with more information.


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