The Haddys have four bed and breakfast rooms

John and Sue Haddy, from Landscove, wanted to turn their farm into a guesthouse after finding it difficult to make a living from farming.

But they were refused planning permission because the farmhouse was a tied agricultural dwelling.

They appealed and now the case could have implications for other farmers wishing to do the same thing.

The Haddys moved to Sladesdown Farm to breed Aberdeen Angus cattle but, like many in the industry, they began to find it difficult to make money.

This will probably have demonstrated to the local authority they've got to look very carefully at diversification uses Charles Wreford-Brown

Mrs Haddy said: "The farming started to go very badly, particularly with specialist cattle like Aberdeen Angus.

"We felt it was no longer a viable proposition so we decided to sell them before we ran into trouble."

Mrs Haddy started to do B&B and the couple decided to make this their principle business.

They applied for change of use but were turned down by South Hams Council, who said the building was needed for agricultural workers.

The couple appealed against the council's decision and won.

Important victory

The inspector said the guesthouse was an appropriate form of diversification, and that in his opinion the house - which is worth over �500,000 - would be well beyond the reach of most agricultural workers.

Charles Wreford-Brown, from surveyors Luscombe Maye, who helped the Haddys with their appeal, says it was an important victory.

He said: "I think this will probably have demonstrated to the local authority they've got to look very carefully at diversification uses.