Farmer turns unloved barn into cash cow

It had long been an ambition of Richard Hartley to turn his rental property into a high-end holiday home and lockdown gave him the opportunity.

Mr Hartley, 46, pictured, is one of many landlords looking to capitalise on the “staycation” boom and boost their profits by turning unloved buy-to-lets into holiday homes that generate much higher returns. In just three months, he has made more than £20,000 from rental income and deposits for future bookings on his Cotswolds property.

A farmer by day, Mr Hartley used the lockdown period to overhaul a barn that was a long-term rental into a holiday let. “The property had been there for 30 years and was very tired,” he said. “We spent £70,000 and had the bathrooms and kitchens taken out and completely refurbished.”

While holiday lets generate a much higher weekly income when they are occupied, a common issue is that homes often stand empty during the off- season. But with foreign travel restrictions unlikely to ease for months or even years, demand for British holidays is increasing all year round.

Figures from Sykes, a holiday rental company, show that autumn bookings this year have risen by y 42pc compared with 2019. The Cotswolds, swolds, seaside resorts, the Lake District and the South West have ve proved popular destinations for holidaymakers. Mr Hartley ey said: “We even have stays booked over Christmas and bookings coming in for r next year. It has been beyond yond our wildest dreams.”

Holiday lets enjoy oy a more favourable e tax regime than traditional buy- tolets. Landlords are able to offset all their expenses against their tax bill, whereas buy-to-let owners are limited in what they can claim. However, holiday let landlords must ensure that the property is available for rent for at least 210 days (30 weeks) of the year and mortgages can be more expensive. Mr Hartley is now plann ning to convert another b barn on his land in the next 18 months to capitalise on the staycation boom. His advice to others who are looking to do the same? “Create somewhere you’d enjoy staying in yourself,” he said.