Calculate Your Return on Investment on a Shepherd’s Hut

If you’ve been looking for another stream of income, another way of life, or just a home office, a shepherd’s hut could be the perfect solution for you.

For landowners and glamping operators across the UK, a shepherd’s hut is a working asset that generates real income from land that is already sitting there.

The question most people research first is whether the numbers stack up. The answer, for most buyers, is that they do, and often faster than expected. What changes the calculation is how you buy. One route is to purchase a hut outright, which with our afford options like the Shetland, is more achievable for some people. Here at Black Sheep, however, you have the option to finance your purchase through our lenders. Paying through a monthly payment is a solution that could tip the scales even further in your favour.

This page sets out what a Black Sheep shepherd’s hut could realistically earn, what it costs to finance one, and how quickly you could expect to see a return.

Shot of dirt road through farmland under blue sky

What can a shepherd’s hut earn

Looking at the latest nightly rates on Airbnb, a shepherd’s hut could fetch between £115 and £240 depending on location, facilities, hosting and style of retreat. There are even more expensive huts available, offering a lavish champagne-filled retreat for £400 a night.

Glamping sites with shepherd’s huts generally achieve an annual occupancy rate of 50%-65% for standard setups, whilst if marketed properly and featuring premium options, this could rise to 75%. First year occupancy rates are bound to be lower, and it’s better to be more conservative when starting out and forecasting an initial occupancy rate of around 30% until you’re established.

If you take a conservative 30% occupancy rate for the first year, at £125 per night, you could be looking at around 109 nights booked for a total gross return of £13,625. For premium and high-end locations, that could rise to £23,980 at £220 per night.

Return on Investment calculator for your shepherd’s hut

The below table gives you a return on investment example for each of our shepherd’s huts, a price per night, and also factors in the option to buy a shepherd’s hut on finance.

These are example figures, whilst interest rates and loans will vary depending on your individual situation, as well as the current Bank of England interest rates. This is assuming a 10% deposit, and borrowing over a period of six years.

Whilst we have given guide figures for the first three years, our Black Sheep Shepherd’s Huts are designed to last up to 20 years with regular maintenance and repairs.

Hut name (price ex VAT)	Price per night	Example interest at 10% deposit	Duration	Est. monthly repayment	Turnover Year 1 (30% occ)	Turnover Year 2 (45% occ)	Turnover Year 3 (60% occ)	20-year Turnover
The Shetland (£24,999)	£115	6%	6 years	£373	£12,535	£18,860	£25,185	£484,725
The Cheviot (£29,999)	£150	6%	6 years	£447	£16,350	£24,600	£32,850	£632,250
The Dorset (£35,999)	£220	7%	6 years	£552	£23,980	£36,080	£48,180	£927,300
The Lincoln (£46,999)	£300	7%	6 years	£721	£32,700	£49,200	£65,700	£1,264,500

High quality materials

Tailored to you

Sustainably built

Cost effective

Award-winning

Want to chat through your shepherd’s hut return on investment potential?

Whether you want to discuss an upcoming project or are just thinking about getting started, we have experience in helping glamping sites of all sizes find success with our shepherd’s huts. Get in touch today.