Top tips for diversifying into storage
Whether you have unused farm buildings or fields that aren’t paying their way, diversifying into storage solutions could be worth looking into.
With demand for accessible warehousing space increasing and companies in need of more rural and semi-rural warehouse space to cope with a rising demand for more frequent parcel deliveries, there is potential for farms and estates to diversify into rural logistics.
Storage is already a popular form of rural diversification. But the step into commercial warehouse storage offers a new direction for landowners.
Here are five things to consider:
Location and access – Proximity to a motorway junction or a busy A road is a key advantage, as are semi-rural farms or estates within easy reach of a major town.
Planning permission – Some change of use may be possible under permitted development rights. Otherwise, local authority attitudes to commercial diversification vary, although they are generally encouraged to look positively towards conversion of farm buildings.
Insurance – Non-agricultural ventures will mean reviewing your cover, especially if public liability is to be added.
Tax – Changing the use of agricultural buildings or land can have significant tax implications.
Health and safety – Regular health and safety checks are likely to be required, especially concerning electricity supplies and gas appliances.
Sarah Mallard, rural surveyor at Savills in Telford.
