All Landlords and Tenants are urged by Tony Rimmer, Director of Rostons, to review the Government Consultation Paper relating to proposed changes to current Tenancy Legislation.
Following the publication of the Agriculture Bill, the proposals relating to Brexit, changes in subsidy, TRIG (Tenancy Reform Industry Group) and the Government have been looking at ways to improve the let sector.
There is now currently a Consultation Paper looking at various options which could have far reaching affects and help to free up holdings for letting in the future.
In Tony Rimmer’s opinion, the most controversial could actually be the most successful in meeting the Governments aims and that is the ability to assign a secure Agricultural Holdings Act 1986 Tenancy to a third party. The assignment would give rise to a rent to the Landlord of an open market rent, in accordance with the Agricultural Tenancies Act and the assignment would be for a 25 year period. Prior to any assignment being entered in to, the Tenant must give the Landlord the opportunity to buy out their interest. This effectively means that a Tenant can get a lump sum to enable them to retire from farming and leave the industry with some dignity, probably at an early age.
Other proposals include changes to the succession rules, allowing succession at an early date, widening those that are viewed as a close relative for part of the current succession rules and also introducing a new business test to ensure that those taking over a Tenancy are capable.
Further changes are proposed to protect the Landlord where they make investment in the holding and agree a return on that investment such that it cannot be disregarded in future rent reviews, allowing the Landlord to ensure an agreed return.
For those with an interest in the Tenanted Sector either land owners or those occupying, they would be well urged to read the consultation and take the time and trouble to respond by the 2nd July 2019.