New legislation on agricultural tenancies in England and Wales
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New legislation that will modernise agricultural tenancies comes into effect today.
Landlords and tenants will have more freedom to reach agreements on agricultural tenancy matters to suit their own needs. Tenant farmers will also be able to boost their incomes by diversifying.
The changes introduced will:
* Enable a successor to a tenancy to earn income from diversified activities without losing the right to succession, where the landlord consents;
* 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 the tenancy;
* Enable landlords and tenants to agree the length of a notice period to suit their particular circumstances, providing it is longer than the minimum period of 12 months.
The changes are the culmination of the work of the Tenancy Reform Industry Group and reflect the Group's recommendations to Government on the way forward on tenancy reform.
Speaking today, Jeff Rooker, Minister for Sustainable, Farming and Food said:
"The changes we have introduced today will help tenant farmers to maximise the potential of their farming businesses, putting them in a better position to compete in the changing agricultural world."
Julian Sayers, Chairman of the Tenancy Reform Industry Group, said:
"I am delighted the recommendations of the Group, the members of which represented all sectors of the industry with an interest in the tenanted sector, have been embodied in the new legislation. Those concerned now have the ability to adopt a more flexible approach to lettings during this period of marked change for farming businesses.
This will hopefully ensure they can embrace the opportunities that exist to derive income from a wide range of activities in the countryside along side agricultural production."
The new legislation comes into effect as the Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 amends the Agricultural Holdings Act 1986 and the Agricultural Tenancies Act 1995.
