As UK farming faces challenges from changing subsidies and rising costs, more farmers are turning to a new revenue stream: transforming their properties into farm stays on Airbnb.
With rural tourism booming and staycations up by over 20% in recent years, now is an ideal time to diversify your farm.
Data shows that Airbnb farm experiences are growing rapidly as more urban dwellers seek to reconnect with rural life. Guests seek family adventures with animals or countryside retreats for groups, and the demand for authentic farm stays is on the up.
The appeal of farm stays spans various demographics – from families looking for hands-on farming experiences to couples seeking romantic rural getaways. Some farmers have even found success offering specialised experiences, such as horse riding experiences or hosting countryside weddings.
What makes farm diversification through Airbnb holiday lets particularly attractive is its flexibility. Whether you have a small holding perfect for intimate stays or a larger property suitable for group accommodation (for example, people search on Google for “Airbnb for 10 guests” or “Airbnb for 16 guests”), there’s a market for every scale of operation.
Our team has explored how to turn your farm assets into a thriving hospitality business, from simple stays to luxury experiences, generating income while preserving your farming heritage.
We will share examples of unique Airbnb farm properties and explain how you can raise finance to begin your own journey.
The Business Case for Farm Diversification
In today’s challenging agricultural landscape, the numbers supporting farm diversification through Airbnb are compelling. Market research shows that UK holiday let stays can generate between £25,000 and £35,000 per converted property annually (data here), making it one of the most lucrative diversification options available to farmers.
Farm stays with animals are especially successful, receiving up to 40% more bookings than standard rural listings. Families searching for ‘airbnb farm with animals’ often pay premium rates for these experiences.
The advantages extend beyond just rental income:
- Year-round Revenue: Unlike traditional farming’s seasonal income patterns, Airbnb farm stays can generate income year-round. Winter bookings for cosy farm retreats are increasingly popular, especially during festive periods.
- Asset Utilisation: Converting underused farm buildings or land into accommodation maximises the return on existing assets. Many farmers report that buildings that previously generated no income now contribute significantly to their farm’s overall profitability.
- Value Addition: Properties adapted for holiday letting often see a 25-30% increase in value over their original agricultural value.
You can start with just one converted outbuilding to test demand, then expand as needed. Many successful farm stays began small and grew based on guest feedback.
The most successful farm stays often combine accommodation with experiences, such as farm tours or animal feeding sessions, allowing for additional revenue streams. Properties that offer these experiences can command 20-30% higher nightly rates than those offering accommodation alone.
FYI – we looked at what people searched for on Google, and these are most in demand:
- airbnb with petting farm
- airbnb cow farm
- airbnb goat farm
- airbnb horse farm experience
- airbnb alpaca farm
For farmers considering this diversification route, it’s worth noting that group accommodation performs well. Properties that can accommodate larger groups often achieve higher occupancy rates and better returns per square foot than smaller units.
The government supports diversification through grants and funding, such as the Agritourism Investment Scheme (AIS) in Scotland. When government funds fall short, Evangate FS can help secure financing for farmers wanting to offer Airbnb accommodation.
This support, combined with growing market demand, makes now an optimal time to consider diversifying into farm stays through Airbnb.
Types of Farm Accommodation Options
When diversifying into Airbnb farm stays in the UK, there are several accommodation options to consider, each with its own appeal and investment requirements. Our team has looked at the most popular options:
Barn Conversions
Traditional farm buildings can be transformed into stunning holiday accommodations while retaining their rustic charm. Barn conversions are especially popular because they:
- Offer spacious living areas ideal for larger groups
- Provide authentic farm stay experiences
- Feature characterful elements like exposed beams and stonework
- Can often accommodate over ten guests, meeting the growing demand for group stays
Shepherd’s Huts and Glamping Pods
These smaller, self-contained units are a great starting point for farm diversification:
- Lower initial investment compared to full building conversions
- Quick to set up and begin generating income
- Appeal to couples and small families seeking unique experiences
- Can be moved to different locations on your land
- Particularly popular for romantic getaways and weekend breaks
Farmhouse Annexes
Converting part of your existing farmhouse can be a cost-effective option:
- Minimal planning permission requirements in many cases
- Allows you to maintain close oversight of the rental
- Appeals to guests seeking an authentic farming family experience
- Perfect for offering interactive experiences with farm life
Luxury Lodges
For farms with suitable land, purpose-built luxury lodges can generate excellent returns:
- Can include premium features like hot tubs and wood-burning stoves
- Perfect for year-round bookings
- Appeal to high-end guests seeking comfort alongside rural experiences
- Ideal for longer stays and family holidays
Farm Buildings Repurposing
Converting existing agricultural buildings, such as:
- Stables into cosy cottages
- Grain stores into group accommodation
- Milking parlours into unique living spaces
- Storage buildings into activity spaces
Specialist Accommodation
Some farms have found success with niche offerings:
- Working farm experiences with hands-on animal interaction
- Eco-friendly sustainable stays
- Educational farm experiences for families
- Wedding venue accommodation
Each type of accommodation can be enhanced with additional features that boost booking rates:
- Private outdoor spaces
- Farm animal interaction areas
- BBQ and outdoor dining facilities
- Nature trails and walking routes
- Educational facilities for farm experiences
Remember, successful farm stays often start with one type of accommodation and expand based on demand and guest feedback. This approach allows you to test the market while minimising the initial risk (and investment). We explain more about these in our other blog posts on Agricultural Diversification and Agriculture Tourism.
Planning and Legal Considerations
The journey to converting your farm buildings into successful Airbnb accommodation begins with understanding planning and legal requirements. We have outlined six areas to consider:
Planning Permission and Change of Use
Most farm diversification projects need planning permission, especially when converting agricultural buildings for commercial use.
First, consult your local planning authority. They can explain requirements in your area, particularly if your property is listed or in a conservation area. Permitted development rights might apply, but always confirm with your local authority before moving forward.
Converting farm buildings to Airbnb holiday lets typically requires a change of use application. This includes transforming agricultural or residential farm buildings or adding new structures, such as shepherd’s huts.
Insurance and Safety Requirements
Protecting your new venture requires comprehensive insurance coverage. You might need public liability insurance with £2 million cover to protect against incidents involving guests. Please check this with your insurer, as some policies require up to £5 million cover.
You may need specific holiday let building and contents insurance, as standard farm policies usually don’t cover commercial accommodation activities.
And, if you plan to employ staff for cleaning or maintenance, employer’s liability insurance becomes mandatory.
Health and safety are paramount when welcoming guests onto a working farm.
You will need to conduct thorough fire safety assessments, maintain valid gas and electrical safety certificates, and implement clear emergency procedures. Creating distinct separation between working farm areas and guest spaces is crucial, with clear signage and safety information provided to all visitors.
Financial and Tax Implications
The tax landscape for farm diversification can be complex but potentially advantageous.
Your holiday accommodation might qualify for Furnished Holiday Let (FHL) status, offering significant tax benefits. You will need to consider registering for VAT, especially if your turnover is likely to exceed the threshold.
Capital allowances may be available for building improvements, and it’s worth understanding which expenses are allowable against your income. Your accountant or finance broker might be able to provide further information on this.
Business Structure and Documentation
Choosing the right legal structure for your farm stay business is crucial.
Whether operating as a sole trader, limited company, or within your existing farm business structure, each option has different implications for tax, liability, and administration. Professional advice can help determine the most advantageous approach for your circumstances.
Proper documentation underpins a successful operation. You will need comprehensive terms and conditions, booking agreements, and privacy policies that comply with current data protection regulations. Creating detailed farm rules and guidelines helps manage guest expectations and ensures safety compliance.
Local Authority Compliance
Beyond planning permission, local authorities may have specific requirements for waste management, noise restrictions, and parking.
Environmental health standards must be met, especially if you are offering additional services such as breakfast or farm activities. Building positive relationships with local authority departments can help navigate these requirements more smoothly.
Professional Support
While this might seem overwhelming, remember that you don’t need to navigate these requirements alone. Professional advice from planning consultants, accountants, legal experts, and agri-finance brokers who understand farm diversification can be invaluable.
Joining local tourism associations and networking with other farm stay operators can also provide practical insights and support.
Taking time to properly address these planning and legal considerations creates a solid foundation for your farm stay business. While it requires an initial investment of time and resources, getting these elements right from the start helps avoid costly issues later and positions your venture for long-term success.
Making Your Airbnb Farm Stay Stand Out
In today’s competitive rural tourism market, creating a unique and memorable farm stay experience is essential. Your working farm itself is your greatest asset, particularly for urban guests seeking authentic agricultural experiences.
The following areas will make your farm attractive to potential guests:
Real-Life Farm Experiences
Guests, especially those from towns and cities, are increasingly seeking genuine connections with rural life. Consider offering interactive experiences that create lasting memories and encourage repeat visits, such as:
- Guided farm tours with hands-on activities
- Morning egg collection with freshly made breakfast
- Seasonal experiences like lambing in spring
- Traditional farming skill workshops
The key is to create experiences that feel natural and authentic rather than staged or touristy. Many successful farm stays report that these simple, genuine interactions often become the highlight of their guests’ stays.
Emphasise Your Unique Features
Every farm has its own character and special features that set it apart.
Whether you have spectacular valley views, a historic barn, or rare breed animals, these unique aspects should be central to your marketing strategy.
If you have specific animals, like alpacas or horses, highlight them, as many guests specifically search for stays with the animals they want to meet.
Luxury Meets Rural Charm
While guests seek authentic farm experiences, they also appreciate thoughtful modern comforts. The most successful farm stays strike a perfect balance between rustic charm and contemporary conveniences. Install features that enhance the stay without compromising the rural character, such as hot tubs overlooking the fields or wood-burning stoves for cosy evenings.
These can include:
- High-quality bedding and towels
- Well-equipped kitchens
- Strong Wi-Fi connectivity
- Comfortable outdoor seating areas
Sustainable and Eco-Friendly Practices
Sustainability has become a big factor in travel decisions.
Share your farm’s environmental initiatives and practices with guests. This might include your renewable energy usage, organic farming methods, or wildlife conservation efforts.
Guests appreciate seeing how working farms can operate sustainably while maintaining productivity.
FYI – if you are interested in generating revenue from ‘green energy’, have a read of our small family farm case study.
Family-Friendly Features
Families often choose farm stays for their educational value. Provide an area where children can learn about agriculture through fun, safe experiences. This includes designated animal interaction areas and age-appropriate farming activities.
Many successful farm stays have found that catering to families leads to high repeat booking rates and positive word-of-mouth recommendations.
Seasonal Offerings
Each season brings opportunities to showcase your farm. Develop specific seasonal experiences and adjust your marketing strategy/activities to highlight these.
Spring might feature lambing experiences and wildflower walks, while autumn could focus on harvest activities and seasonal produce.
This approach helps maintain year-round interest and bookings.
Pet-Friendly Farm Stays
Making your farm stay pet-friendly can significantly boost your booking potential and revenue. Data shows that properties welcoming pets receive up to 18% more bookings annually than those that don’t.
While some farmers express concern about dogs around livestock, successful Airbnb farm stays in the UK have found ways to make it work safely and profitably.
The key is creating clear boundaries and guidelines – such as designated dog-walking areas away from livestock, enclosed exercise spaces, and rules about keeping dogs leashed near farm animals.
Consider offering pet-friendly amenities such as water bowls, waste bags, and dog towels, which guests will appreciate. You might also add features, such as a secure dog paddock or an agility course, to set your property apart from other farm stays.
Remember to factor in additional cleaning costs and potentially higher insurance premiums, but these are usually more than offset by increased booking rates and longer average stays from pet-owning guests.
Professional Presentation
First impressions matter tremendously in the holiday letting market. Invest time and resources in:
- Professional photography that captures your farm’s beauty
- Clear, detailed descriptions of accommodations and experiences
- Regular updates to your listing reflecting seasonal changes
Remember to maintain prompt, professional communication with potential guests, as this often sets the tone for their entire experience.
The most successful farm stays succeed by offering something unique that guests can’t find elsewhere. Focus on what makes your farm special and build your guest experience around these distinctive features, while ensuring the comfort and amenities that modern travellers expect.
By combining traditional, old-school farm experiences with thoughtful modern conveniences, you will create a memorable stay that guests will want to return to again and again.
Farm Holiday Let Operational Assistance
Running a farm and managing a successful Airbnb business simultaneously can be challenging. This is where professional management companies can provide valuable support, allowing you to focus on your main farming operations while maximising the potential of your holiday lets.
Management companies can take care of all, or most, aspects of your farm stay business, including:
- Managing inquiries and reservations
- Handling check-in and check-out procedures
- Responding to guest questions and concerns
- Providing local area information and farm stay guidelines
- Coordinating cleaning services between stays
- Ensuring safety compliance
Working with a management company often leads to:
- Higher occupancy rates through professional marketing
- Better revenue through optimised pricing
- Reduced stress and time commitment
- Consistent quality standards
- Professional guest relations
When selecting a management company, look for companies with specific experience in farm stays or rural tourism. They should understand the unique aspects of managing holiday accommodation on a working farm and communicate effectively with guests about farm life.
Companies with local representatives can respond quickly to issues and maintain better oversight of your property. They should also understand the local tourism market and maintain relationships with reliable local services.
Airbnb offer a co-host service which might be all you need!
Airbnb Farm Stays Success Stories
Converted Grain Silo
This grain silo was converted into luxurious holiday accommodation on a working farm.
The accommodation is arranged across multiple levels. On the ground floor, guests will find a laundry area equipped with a washer/dryer. The master bedroom features a comfortable king-size bed and an en-suite bathroom with a spacious walk-in shower.
The first floor presents an open-plan living space that combines practicality with comfort. It features a fully equipped kitchen that provides everything needed for self-catering, and the dining area can accommodate six guests. The living area offers comfortable seating, including a double sofa that converts into an extra bed, two armchairs, and a smart TV for evening entertainment.
On the mezzanine level, guests will discover a second bedroom with a double bed and a full bathroom with a compact bathtub. While this upper level offers some privacy through a thoughtfully placed screen, its open-plan nature adds to the property’s unique character.
This conversion demonstrates how traditional farm buildings can be transformed into exceptional holiday accommodation.
Converted Farm Barn
The Barn represents an outstanding example of thoughtful farm building conversion, offering guests a perfect blend of spacious living and cosy comfort. This converted property sits peacefully on a quiet farm, just 1km from Lundin Links, providing an ideal retreat for people seeking a rural escape.
The conversion cleverly utilises the barn’s original height, featuring a mezzanine bedroom with a king-size bed that overlooks the impressive double-height living space below. This architectural choice floods the open-plan living area with natural light, creating an airy yet intimate atmosphere. The downstairs space has been carefully designed to include a modern bathroom with a large walk-in shower, complemented by a fully equipped kitchen and comfortable dining area.
Outdoor living has been thoughtfully considered, with two distinct spaces offering guests different experiences throughout the day. Its pet-friendly policy adds extra appeal for those travelling with four-legged companions.
This conversion successfully balances modern comfort with rural charm.
Financing An Airbnb On UK Farm
If this has whetted your appetite to start your own Airbnb farm holiday let, you are probably wondering how to finance the first step.
This is where working with a specialised finance broker can significantly streamline the process of securing funding for farm diversification into Airbnb properties.
The Evangate FS team understand both agricultural lending and holiday let mortgages, allowing us to access a wider range of funding options than might be available directly through traditional banks. We help farmers navigate complex lending criteria, particularly when transitioning from agricultural to commercial use.
Our team will assess your farm’s current financial position, projected income from the holiday lets, and existing assets to build a compelling case for our network of lenders. We can also help structure the funding to optimise tax efficiency and maintain any agricultural reliefs.
We have helped farmers just like you successfully fund farm diversification projects, providing affordable finance packages that support both the initial conversion and ongoing business development.
If you would like more information, contact our team today for a free, no-obligation chat to discuss your options.
