Owner Case Study: Starting a New Venture in Holiday Letting

In 2020, investment-savvy farmer Ashley Tyson and his wife Nicola, both 47, decided to set up their own holiday let business to capitalise on the UK staycation boom.

Using their savings, the couple invested in and built a cosy shepherd’s hut within the grounds of Stepney Hill Farm, based on the outskirts of Scarborough.

Surrounded by stunning countryside and distant sea views, Shepherd's Hut serves as a romantic retreat for guests to return to after a day exploring the North Yorkshire coast. Offering a unique staycation experience to holidaymakers, the hut has year-round appeal with the addition of features like a woodburning fire and hot tub.

What made you get into holiday letting?

We were originally running a wedding venue business, which we had to close during the first lockdown of 2020.

As entrepreneurs, we were keen to find ways to boost our rental income while diversifying our farmland. After looking into popular popular staycation trends and seeing increasing demands for alternative holiday lets, we decided to try our luck with glamping.

How much did it cost to diversify your farm?

We spent around £11,000 in total, using some of our savings to get the ball rolling. It was a challenging time for work in our area, so we hired two local workmen to help us build the shepherd's hut from scratch.

Has Shepherd’s Hut been a good investment for you?

Starting a new business venture during the pandemic was challenging at times, but also very rewarding. We had a surge of bookings when travel opened up in 2020 and 2021, while our diary continues to fill up in 2022 with ongoing demand for quirky holiday lets. Diversifying our farm with Sykes has far exceeded our expectations - the hut has definitely paid for itself!

Interesting in earning extra income? Discover why holiday letting could be a successful investment for you.

What do you enjoy about holiday letting?

We loved seeing our guests’ reactions when we were able to first open up last summer, and look forward to meeting even more new faces now that self-contained accommodation has officially reopened. It has also been a great way to get into holiday letting as building the hut itself required little up-front investment and is fairly easy to maintain.

Why did you choose to let your property with Sykes?

After a recommendation from a friend, we decided to use Sykes Holiday Cottages to manage bookings and I’m so glad we did. I would wholeheartedly recommend holiday letting for anyone who is considering it as a project and using an agent makes the whole process hassle-free.

If you're thinking of renting out your second home, find out why choosing Sykes as your holiday let agent could help maximise your property's potential.

Are you planning to extend your holiday property portfolio?

We are in the process of extending a conversion on our farmhouse into a holiday let for guests.The new property will feature a luxury kitchen and lounge, complete with a log burner and hot tub for those looking to enjoy a winter trip. It will also be fully accessible for disabled guests.

For further information on diversifying and generating income from your land, read our guide on the Benefits of Farm Diversification.