The Tenancy Reform Industry Group (TRIG) and Tenant Farmers Association (TFS) have published a new code of Good Practice for Projects, Schemes or Works Requiring Lanldord's Consent in Agricultural Tenancies.
The Code, which intends to encourage and promote good practice in the conduct of landlord/tenant relationships, encourages both to reach amicable agreements whilst pursuing projects, participating in schemes, or undertaking works on tenanted land which requires the other party’s consent. It is hoped that the guidance will steer both parties towards a satisfactory outcome when negotiating variations to an Agricultural Holdings Act 1986 (AHA 1986) Tenancy or a Farm Business Tenancy (FBT), in the pursuit of agricultural and non-agricultural diversification and also for the application for financial support schemes that they were previously unable to claim due to restrictive tenancy clauses.
Before any action is taken, both tenants and landlords should check tenancy agreements to see exactly what is and is not permissible. Consent may not always be required, but in instances where permission needs to be sought this code will help in giving practical advice on engaging in initial negotiations.
Charles Raine, Director, youngsRPS, who works closely with the TFA, said: “The new code will prove a vital tool in bridging the relationship gaps between landlords and tenants of agricultural land and property, enabling clear negotiations, and reducing the need for formal dispute resolutions. Historically, unreasonable refusals have hindered tenant farmers, but with this guidance on communications for both party’s we look forward to the code encouraging successful collaborations. The impact of leaving the EU, alongside battling climate change and the phasing out of the Basic Payment Scheme has left the industry facing some of the biggest changes to practices we have ever experienced. Effective working relationships are essential in moving forward and encouraging productivity.”
If you are an agricultural tenant considering undertaking any Projects, Schemes or Works Requiring Landlord’s Consent our rural teams have considerable experience in this field and can provide professional advice and support. For further information visit www.youngsrps.com or email charles.raine@youngsRPS.com