Changes to the laws on Agricultural Holdings
May 27th 2021Changes to the laws on Agricultural Holdings come into force on 21 June 2021, allowing tenants to demand changes to their tenancy or consent from their landlord, where the landlord will not agree.
Jonathan Carroll Director and Head of Agriculture provides an update.
Agricultural Holdings Act
The snappily titled “Agricultural Holdings (Requests for Landlord’s Consent or Variation of Terms and the Suitability Test) (England) Regulations 2021” allow a tenant of an agricultural holding governed by the Agricultural Holdings Act 1986 to request that a third party determines the issue where:
- The landlord’s consent is required or the tenancy agreement needs altered
- That is to enable the tenant to apply for grant funding or to comply with statutory duties; and
- The landlord has not agreed.
The Agricultural Holdings Act 1986 (AHA 1986) is a piece of UK legislation that governs the relationship between landlords and tenants of agricultural land. It provides protection for tenants and sets out the rights and responsibilities of both parties.
Lack of clarity: One of the major issues with the AHA 1986 is the lack of clarity in its provisions. This can lead to misunderstandings and disputes between landlords and tenants, especially when it comes to the interpretation of key provisions such as rent reviews and termination of tenancies.
Failure to update: Another issue with the AHA 1986 is that it has not been updated to reflect the changes in the agricultural industry over the past three decades. This has resulted in a lack of clarity in some provisions, making it difficult for tenants and landlords to understand their rights and responsibilities.
Unfairness: Some provisions of the AHA 1986 have been criticized for being unfair to tenants. For example, the law allows landlords to terminate tenancies on relatively short notice, which can put tenants in a difficult position.
Inadequate protection: The AHA 1986 has been criticized for not providing adequate protection to tenants. For example, the law does not provide sufficient protection against eviction, which can leave tenants vulnerable to being forcibly removed from their homes.
Lack of flexibility: The AHA 1986 has been criticized for being too rigid and lacking in flexibility. This can make it difficult for landlords and tenants to reach agreements on matters such as rent reviews, which can lead to disputes.
Inadequate support: The AHA 1986 does not provide adequate support for tenants, who often lack the resources to enforce their rights under the law. This can make it difficult for tenants to secure the protection they are entitled to under the law.
Slow resolution of disputes: Finally, the AHA 1986 has been criticized for the slow resolution of disputes between landlords and tenants. This can result in long, drawn-out legal battles, which can be costly and time-consuming for both parties.
The tenant must first put the request in writing to the landlord and pay their rent due, and the tenancy must not be subject to an existing valid notice to quit. The tenant has to give the landlord certain specified information, basically to show what the change is and why it is needed.
If the landlord still will not agree, the matter can be referred to arbitration for a decision. The general rule in arbitration is that the losing party pays the legal costs, so it is not to be started lightly, but the landlord faces the same dilemma in saying no to a change. If the landlord insists on unacceptable conditions, the tenant can refer that issue to arbitration too, again with the loser expecting to pay the legal costs.
Where the parties agree, the dispute can go to an expert land agent to decide instead, which will often be quicker and cheaper.
The legislation also makes substantial changes to the ‘suitability test’ applicable to applicants for succession tenancies, but those changes will not come into force for another 3 ½ years.
If you would like more information about the issues raised in this article please contact Jonathan on 01228 514077 or send him an email.
![Facebook](javascript:sharePopup('https://www.facebook.com/sharer/sharer.php?u=https://www.cartmells.co.uk/changes-to-the-laws-on-agricultural-holdings/&picture=https://www.cartmells.co.uk/wp-content/uploads/2020/07/Jonathan-Carroll-1-2.jpg&title=Changes to the laws on Agricultural Holdings"e=Changes to the laws on Agricultural Holdings', 'Share with Facebook','600','400','100','300')){kind=link}