It may work. Martin and Danni W-R did it in his house in France (though I think he has now stopped) and Martin Simpson does occasional ones (Sheffield and France). Songwriting seemed to go down well as I remember. Lots of older folkies (baby boomers) coming to the age when they can afford this.   

Plenty of folkie people in the lakes, and welsh border country for starters. Peak district might be another good one, lots of folkies nearby in Sheffield and that area who wouldn't have to travel far!

The Scots might take to it too - not sure if anyone does it up there.

There may be grants from tourism people to help subsidise.