What to know about operating a property with holiday accommodation

Over £12 billion was spent on the domestic holiday tourism market in 2024, according to Visit Britain. As the ‘staycation’ trend continues in popularity, so does the potential for rural landowners to turn properties with potential for holiday accommodation into a thriving business.

Increased business costs and recent agricultural policy changes have put pressure on farm and rural estate incomes. As highlighted in Savills Spotlight: tourism, leisure and events market, Defra reports a decrease in average farm business income in England for 2024 of -53% compared to the previous year. Branching out into tourism can help reduce the shortfall and business risk by providing an alternative source of income for farmers and landowners.

From hidden away lodges to cottages for short-term lets, offering holiday accommodation can offer a wide range of benefits. Here are some key considerations for those thinking of becoming part of the tourism sector:

Location

Two major trends shaping UK tourism are the desire for authentic experiences and a focus on wellbeing. Travellers are increasingly seeking unique experiences that offer relaxation. A major factor in meeting these needs is the location of the holiday.

For those thinking of running a holiday accommodation business, consider whether the site is in an attractive rural destination. Is it near woodland or water, allowing guests to enjoy walking or swimming nearby?

Guests are looking for a secluded and quiet destination to enjoy an experience that is unplugged and relaxing. At the same time, striking a balance is key, as it shouldn’t be too remote. Access to local facilities, whether it be shops, pubs, or activities, is equally as important to guests.

Availability of services

Beyond having a picturesque property in a desirable location, unless the proposed accommodation offer is off grid, you must have the required services including access to water, drainage, electricity, and Wi-Fi, for both compliance of regulations and the comfort of the guests.

Lifestyle fit

Building a strong customer base and positive reviews will make all the difference in making a holiday accommodation business thrive. Tourism is a largely customer facing business, and owners should be both prepared to interact with guests and enjoy having people, quite literally at your doorstep.

Adding value

Holiday accommodation can add value and complement other activities on your farm or estate. If your property already has event space or an attraction, for example, consider whether it can provide accommodation for wedding guests or extend the dwell time for those visiting an attraction.

Using a third party operator

With all the benefits of operating a holiday business also comes a large undertaking. Many choose to use a third party operator to help navigate the ins and outs of the business. As a property owner, you should consider: do you have the resources to promote and sell the lodge accommodation, or will you use a letting agency?

For example, ÖÖD has established a collection of its unique Mirror Houses near the Oxfordshire village of Kirtlington and are currently looking for other rural UK sites for their partnership agreements. As part of these agreements, ÖÖD supply the lodges and use their own sales and booking platform to take this onerous task away from the landowner and ease some of the stress.

Mirror Houses can be supplied furnished or unfurnished and with an optional private hot tub or sauna, perfect for enjoying the outdoors in a private setting . The interiors come with all the essentials for a short getaway, including a kitchenette and bathroom.

From a landowners point of view, working with a third party operator not only reduces the upfront cost of establishing a holiday accommodation enterprise, but it also significantly reduces the operational burden of having to promote the accommodation and deal with booking administration.

Housekeeping and maintenance

Beyond the sales and promotion of the property, you will also need to consider maintenance. For a larger business, you will need a team of housekeeping and maintenance staff to service the property and its landscape.

As ‘staycations’ are on the rise in the UK, what better time than to invest in property with holiday accommodation, offering a chance to diversify income, support rural tourism, and create a business that’s both profitable and rewarding.

Here's a selection of properties currently on the market that include holiday accommodation.