AGRICULTURAL TENANCY REFORM

Following a review by the Tenancy Reform Industry Group (TRIG) various changes were made to the legislation affecting Farm Business Tenancies and Agricultural Holdings Act tenancies. If you are a landlord or tenant then these changes may impact upon your property.

A recent High Court ruling R Davies v Agricultural Land Tribunal and Phillips & Phillips 2007 upheld the decision of the Agricultural Land Tribunal (Wales) in regard to the granting of a Certificate of Bad Husbandry. The decision has potential implications to many Agricultural Holdings Act tenancies where tenants have moved away from traditional agriculture into agri-environmental schemes involving landfill operations or the like.

You will be aware of the general right of tenants under the Agricultural Holdings Act 1986 to retire and nominate a successor. This important ruling in Shirley & Others –v- Crabtree 2007 concerns the principal livelihood test and clarification of the dates of the 7 year ruling.

Part of the “Trig” reforms mentioned above included changes to the arbitration procedures - in particular the implications of the removal of the strict time limits, parties’ rights under the Arbitration Act 1996 and the matters likely to involve arbitration as a means of dispute resolution.

If you are a landlord contemplating the service of a notice to quit a great degree of consideration is required. The wrong reason or wording in a notice to quit can have huge cost implications. Professional and legal advice is necessary at the outset.