Farm diversification — Holiday lets

Holiday Let & Barn Conversion ROI Calculator

Estimate income, profit and capital uplift from converting a barn or outbuilding into a self-catering holiday let. Most useful for assessing whether the conversion stacks up against simpler alternatives — including selling the plot.

Indicative figures only — do not rely on these for financial decisions.

This calculator uses generic UK assumptions for 2025–2026. Actual income, costs, planning prospects and tax depend heavily on your specific site, local market, and circumstances. Always take professional advice (planning consultant, accountant, surveyor) before committing capital or signing agreements.

Conversion & weekly rates

Bedrooms

Conversion cost

Typical Class Q barn conversion £150k–£250k

Annual occupancy

Mature lets 55–70%; year 1 30–45%

Peak £/week

Summer + Christmas + half-terms

Mid £/week

Spring/autumn shoulder

Off £/week

Mid-Jan to mid-March etc.

Peak weeks/yr

Mid weeks/yr

Off weeks/yr

Variable opex (% of revenue)

Cleaning, OTA fees, utilities, maintenance

Value post-conversion (GDV)

What the converted dwelling would sell for

Agricultural barn value today

Estimated results

Annual revenue

£34,320

After occupancy

Annual profit

£23,338

14.6% net yield

Capital uplift

£305k

GDV − barn − conversion

10-year NPV

£20k

At 5% discount, after capex

Could selling a plot make more sense?

On the same 2.5 acres, releasing serviced plots to UK self-builders could return roughly £1,898,734 as one-off capital (~10 plots • 2.50 acres × £759,494/acre (South West)). Worth comparing against ongoing diversification income before you commit capex.

Compare a self-build sale Full land value calculator

How this compares to other diversification options

Indicative figures for the same land used differently. Each option has its own focused calculator if you want to dig in.

Land available (acres)1 hectare ≈ 2.47 acresRegion

Option	Upfront capex	Annual profit	One-off capital	10-yr net	Notes
Sell as self-build plots	£0	—	£1.90m	£1.90m	~10 plots • 2.50 acres × £759,494/acre (South West)	Open
Wedding venue	-£250k	£125k	—	£715k	25 events/yr, £8k/event revenue, £3k cost	Open
Battery storage lease	£0	£60k	—	£463k	2-acre footprint, grid-adjacent only	Open
Livery yard	-£85k	£29k	—	£140k	10 boxes, mixed DIY/part/full	Open
Glamping site	-£190k	£32k	—	£55k	6 pitches × 35% occupancy × 28-week season	Open
Holiday let (1 barn conversion)(this tool)	-£160k	£23k	—	£20k	Your figure from this calculator
Solar farm lease	£0	£2k	—	£18k	2.5 acres × £950/acre/yr	Open

Upfront capex is what you have to spend before income starts (£0 for solar/battery — the developer funds it). 10-year net = NPV of 10 years of profit (5% discount) minus upfront capex; for one-off sales it's just the capital received. A negative number means the option doesn't pay back its capex within 10 years on these assumptions.

Holiday let reality check

FHL tax status changed in April 2025. Furnished Holiday Letting tax treatment was abolished — holiday lets now pay tax like a standard rental, with no capital allowances on furniture and tighter loss treatment. This calculator shows pre-tax profit only.
Class Q is route-of-least-resistance, but limited. Up to 10 dwellings per holding, strict on existing structure use. Many barns fail the structural test. Class Q does not always cover commercial holiday letting — confirm locally.
The capital uplift is often the bigger prize. A converted barn often gains £200k+ of GDV vs the agricultural value. That uplift is taxed as a gain only on eventual sale.
OTA dependency is a risk. Booking.com / Airbnb / Sykes all change terms regularly. Sites with a direct-booking website earn 15–18% more.

Holiday let FAQ

How much does a UK barn conversion holiday let earn?▾

A 3-bed converted barn in a tourist area at £1,500/week peak, £950/week mid, £550/week off and 60% occupancy makes around £45k revenue and £29k profit per year before tax.

What does a barn conversion cost in 2026?▾

Class Q conversions typically £150k–£250k for a 3-bed depending on starting structure. Full planning conversions can run £200k–£350k. Beware ground conditions, drainage, and bringing services in.

Has the FHL regime really been abolished?▾

Yes — Furnished Holiday Letting tax status ended April 2025. New rentals are taxed as standard property income. Capital allowances on furnishings no longer apply, and pension contributions can no longer be made from holiday let profits.

Do I need planning permission to convert a barn to a holiday let?▾

Class Q (agricultural to dwelling) and Class R (agricultural to flexible commercial) cover many cases under permitted development. Holiday letting is generally a 'use class C3' or 'sui generis' activity — confirm with your LPA before starting.

What is the GDV of a converted barn vs agricultural barn?▾

An agricultural barn might be £40k–£100k. The same building converted to a 3-bed dwelling can be £400k–£700k+ depending on region — net of conversion cost, the uplift is typically £150k–£250k.

Should I convert or sell the barn for self-build?▾

Selling a converted dwelling is a one-off capital event without years of operational work. It is often the higher-net-of-effort outcome. The 'How this compares' panel above shows both side by side.

Disclaimer. This tool provides indicative estimates only and must not be relied upon as financial, planning, tax or legal advice. Default assumptions reflect 2025–2026 UK market ballparks and will not match every site. Income, costs, planning outcomes and tax treatment vary significantly by location, scheme design and individual circumstances. Livedin accepts no liability for decisions taken on the basis of these estimates — please obtain professional advice from a qualified planning consultant, chartered surveyor and accountant before proceeding.