Farm Diversification & Letting

Holiday lets can be an extremely profitable venture, after the initial investment. Achieving high letting rates comes with careful planning.

What’s more, Owners can claim back Capital Gains Tax relief if the property qualifies as a furnished holiday let (FHL). You should also be able to obtain tax relief on furniture for your holiday home.

Plant and machinery capital allowances are just some of those available for business properties for items such as furniture, equipment, and fixtures, and certain heating installations.

You may also be eligible for a grant under a government farm diversification scheme such as Leader so it is definitely worthwhile checking out what is available in your local area.

If you are converting an historic barn then try to retain as many of the original features as possible. Exposed brickwork, wooden beams, original signage, stable doors, indoor wells etc. are interesting. Combining these with luxury furnishings and a few modern touches creates a dramatic and pleasing effect.

Do give some time to consider the name you give your holiday home. If you can, reflect on its heritage, location, or former purpose as this can pique the interest of many guests interested in the provenance of where they stay. For example, a property named The Old Shed doesn’t sound as inviting as it might actually be…

Open plan living works well in barn conversions and proves a popular choice with guests. Double height ceilings inject the wow factor and combined with a mezzanine bedroom really maximise the space.

Don’t feel the need to cram in too many bedrooms. It’s far better to have a couple of decent-sized bedrooms with en-suite bathrooms, over three bedrooms with one bathroom. Adding a downstairs bedroom complete with a wet room will offer extra appeal to those with reduced mobility.

When thinking about farm diversification in Yorkshire, working farms can appeal to families who will love collecting their own fresh eggs for breakfast, as well as helping to feed the baby lambs in Spring.

Try to include some of your own produce in your Guest Welcome Hamper, and think about some of the experiences you can offer to your guests.

What may be quite a normal practice for you will prove a fantastic rural experience to guests who live in a city!