The government has laid proposals before parliament that will provide a more flexible framework for agricultural lettings.
The changes, which will amend the Agricultural Holdings Act 1986 and the Agriculture Tenancies Act 1995, will, if adopted:
● remove the requirement for a potential successor to a tenancy to earn a living primarily from agricultural work on the holding;
● enable landlords and tenants to reach their own agreements on rent reviews and end-of-tenancy compensation;
● make it easier for landlords and tenants to restructure holdings held under a 1986 Act tenancy;
● remove the need for unnecessary applications to the Agricultural Land Tribunal where a landlord agrees on the successor to a tenancy; and
● enable landlords and tenants to agree a notice period to terminate a tenancy to suit their particular circumstances, providing it is longer than the minimum period of 12 months.
Speaking on Friday, Lord Bach, minister for sustainable farming and food, said: “The current legislation can hamper tenants by preventing them from moving into new and profitable activities. The changes… will remove some of these legal barriers, and will benefit both tenants and landlords by giving parties greater freedom of contract to reach their own agreements.”
The proposals, set out in a regulatory reform order, are the culmination of several years’ research, first by the Tenancy Reform Working Group and recently by government consultation.
Copies of the draft regulatory reform order and explanatory notes can be found at http://www.defra.gov.uk/farm/tenancy/index.htm.
References: EGi Legal News 03/04/06
