The Road Ahead

Adapting to the Agricultural Landlord and Tenant Code of Practice guide.

An important element of agricultural law relates to the relationship between landlords and tenants. In recognition of the evolving landscape of agricultural practices and tenancy agreements, governments often implement regulatory frameworks to ensure fairness and efficiency.

On 8 April 2024, the Agricultural Landlord and Tenant Code of Practice for England (“the Code”), was published following Department for Environment, Food and Rural Affairs’ (“Defra”) response to the Rock Review.

The Code is founded on three principles: clarity, communication and collaboration to promote more co-operation between landlords and tenants and it addresses several key areas:

1. Rent Reviews: One notable aspect of the Code is the provision for more transparent and fair rent review processes. Both parties should familiarise themselves with the procedure and terms on which rents can be reviewed. Beyond discussing rent, it's beneficial to explore common interests such as future investment needs, economic conditions, and expectations regarding property maintenance and upgrades. These discussions can shape the terms of the new rent agreement, especially if there hasn't been regular communication between reviews.
2. Notice Periods: Another crucial element pertains to notice periods for terminating tenancies. The Code outlines clear guidelines regarding the length of notice required by both landlords and tenants, providing greater clarity and stability in tenancy arrangements.
3. Succession Rights: In many agricultural communities, the issue of succession rights has been a point of contention. The Code seeks to address this by providing clearer guidelines and protections for tenants, ensuring that succession arrangements are fair and transparent.
4. Improvements and Repairs: Maintenance and repair responsibilities are clarified under the Code, ensuring that both parties understand their obligations regarding property upkeep. This helps prevent disputes and ensures that agricultural properties are maintained to a suitable standard. It is also suggested that agreements about improvements should be documented carefully.
5. Dispute Resolution: Effective dispute resolution mechanisms are crucial for maintaining healthy landlord-tenant relationships. The Code emphasizes the importance of mediation and arbitration in resolving disputes promptly and amicably, reducing the need for costly and time-consuming legal proceedings.
6. New opportunities, schemes and agreements: The Code encourage open and constructive dialogue between tenants and landlords regarding environmental, economic, and development opportunities. Landlords shouldn't unreasonably withhold consent for new schemes, but may do so for valid reasons such as tax implications or mortgage terms. Blanket bans on participation in opportunities are discouraged in new tenancy agreements unless justified. Tenants should consider the landlord's interest, even if formal consent isn't needed, and inform them in advance of any applications that could affect the property's future. Similarly, landlords should respect tenants' interests when reviewing proposals.

It's worth noting that this Code is voluntary. Both landlords and tenants still have to follow the terms of their rental agreements and operate within existing laws and regulations. This Code doesn't override or duplicate these basic legal requirements, nor does it introduce new ones. Its aim is to encourage better ways of working within the agricultural rental sector.

Overall, the new Code represents a significant step forward in promoting fairness, transparency, and sustainability in agricultural tenancy arrangements. By addressing key areas such as rent reviews, repairs, schemes, disputes, termination and renewals, the code aims to create a more harmonious and productive relationship between landlords and tenants in the agricultural sector.

If you are considering putting in place a tenancy agreement or entering into a tenancy and you need assistance with navigating the Code, or if you have any queries on any issues raised in this newsletter, please contact Neil Franklin (moc.s1721985022tillo1721985022r@nil1721985022knarf1721985022.lien1721985022), Ruth Maltby-Sinkler (moc.s1721985022tillo1721985022r@rel1721985022knis-1721985022ybtla1721985022m.htu1721985022r1721985022) or Zaneta Andraszczyk (moc.s1721985022tillo1721985022r@kyz1721985022czsar1721985022dna.a1721985022tenaZ1721985022).