Guide to the Agricultural Tenancies Act 1995: introduction
The agricultural tenanted sector has been in a long-term decline. Although about a third of agricultural land is rented, a substantial amount of this has been under seasonal grazing agreements or other short-term arrangements. Such arrangements mean that neither landlords nor tenants can plan ahead with much confidence, and the shortage of land to rent for reasonable periods of time causes serious problems for would-be new entrants.
This state of affairs is due partly to the restrictive landlord/tenant legislation which, by providing lifetime security of tenure for all but short-term tenancies, has discouraged landowners from offering land to rent. The Government therefore decided that a new legislative framework was needed.
Following a long period of detailed consultation with the main industry organisations in England and Wales, a Bill was introduced in Parliament and received Royal Assent in May 1995. The objectives were to deregulate and simplify legislation for future tenancies; to increase lettings on freely-negotiated terms (but with some key safeguards); and to provide a flexible and lasting legal framework. Within that framework, the terms and conditions of the new tenancies will be for negotiation between landlords and tenants, who must decide what is right for them. In particular, the new law does not impose any extended security of tenure beyond the length of tenancy agreed between the parties.
Agricultural tenancies which are already in existence at 1 September 1995 are unaffected by the new Act and will remain subject to the Agricultural Holdings Act 1986. There is no question of any existing tenancy being converted to a farm business tenancy on 1 September by the coming into operation of the Agricultural Tenancies Act 1995.
Tenancies beginning before 1 September 1995 cannot be covered by the new Act, and fall instead under the Agricultural Holdings Act 1986.
If you have a tenancy to which the right of statutory succession applies under the 1986 Act, your successors (assuming they meet the eligibility and suitability criteria) will have the statutory right to take up agricultural tenancies under that Act.
The new Act applies only in England and Wales. Tenancies under the new Act will be known as Farm Business Tenancies.
Page last modified: 3 June 2003