With much of Cheshire’s tenanted farms subject to the 2nd February term date, Rent Reviews have been on the Agenda of Landlords as they return to work following the New Year.
Some Landlords served Notices twelve months ago and have not yet had any meaningful discussions with their Tenants as yet as to what level of increase they are looking for.
This follows on the back of substantial increases in 2009. Many Tenants feel that when farming was in a recession through the early 2000’s they did not take the initiative to serve a rent review for a decrease and yet the minute prospects turn around, Landlords are seeking increases, as such they are feeling somewhat hard done by.
On a number of holdings Landlords are yet to invest in fixed equipment as a result of the NVZ legislation and this has proved a topic of much discussion on a number of dairy units.
Whilst there is much pub/market talk as to the level of increases being agreed Tony Rimmer, Director of Rostons, reminds those Tenants when faced with a Rent Review it is all relative. No two holding are identical and in many cases the investment that the Tenant has made will be different, higher levels of rent can be paid where the Landlord has invested in the holding, but where all the investment is down to the Tenant, then one would expect a lower level of rent.
Also the difference between farm business tenancy rents (modern tenancies) and those secure
Agricultural Holdings Act Tenancies are very different. The basis of assessment is equally different and this should be born in mind.
If you have been approached, regarding a rent review or wish to instigate a rent review, then please contact Tony Rimmer, 01829 773000.