Duke's estate in 'aggressive' approach to rent increases

The Tenant Farmers Association has expressed concerns over reports from Ralph Percy, Duke of Northumberland's estate of an 'aggressive' approach being taken on farm rents.

56 year-old Percy was blamed after tenants claimed his agents demanded huge increases in rent or face the threat of eviction.

"There is no justification for any landlord to take an aggressive approach and estates like the Duke of Northumberland's should be looking for sustainable solutions for both landlords and tenants based on fair and equitable negotiations" said TFA National Chairman Jeremy Walker.

"We have seen increases in farm rents across all sectors over the past year, and there is strong evidence of settlements achieved at reasonable levels when both sides engage in active discussions and make reasoned arguments, working within the rent review framework of the relevant Act either the Agricultural Holdings Act 1986 or the Agricultural Tenancies Act 1995."

David Robson, chairman of the NFU in Northumberland accused the estate of having a get-rich-quick attitude: "It seems the Estate is wanting its pound of flesh. Historically, they were run more on the traditional basis where a farmer was actively encouraged to look after the land."

"Now if the farmer can't pay he’s out the door. This is a get-rich-quick solution but offers no incentive for much-needed investment in the business."

The Agricultural Holdings Act 1986 provides a set of rules when it comes to assessing the rent properly payable which must not be ignored by either party.

"In every case there needs to be an understanding of market conditions, in terms of rents being paid on comparable holdings as well as profits that can be achieved" said Walker.

"Landlords should take note of the difficult farming conditions of last year and the continued struggle this year following the effects of the poor weather of 2012."

Farmers in the UK are faced with problems including poor crop establishment as well as quantity and quality issues association with last years harvest, rising input and feed costs which is putting pressure on farm margins across all sectors.

"Tenant farmers would much rather be making good profits and paying good rents to their landlords, however landlords must accept that in tough times the ability of tenants to pay increased rents will be severely limited."

"Rent Review negotiations may also provide opportunities to look at the wider picture and discuss matters of mutual concern in connection with the future management of the holding, further highlighting the need for sensible negotiation between two parties," said Walker.

"Tenants should not feel browbeaten and forced into settling and it is essential that tenants seek advice about their individual circumstances before agreeing to anything. The TFA can provide essential advice, information and support required by tenants faced with unrealistic rent review proposals."

Farm groups have urged the estate to take a 'realistic approach' and allow rational negotiations in order to achieve a mutual settlement.