Agricultural Holdings Act 1986

Part I — Introductory

Principal definitions

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• (1) In this Act “agricultural holding” means the aggregate of the land (whether agricultural land or not) comprised in a contract of tenancy which is a contract for an agricultural tenancy, not being a contract under which the land is let to the tenant during his continuance in any office, appointment or employment held under the landlord.

• (2) For the purposes of this section, a contract of tenancy relating to any land is a contract for an agricultural tenancy if, having regard to—

• (a) the terms of the tenancy,

• (b) the actual or contemplated use of the land at the time of the conclusion of the contract and subsequently, and

• (c) any other relevant circumstances,

the whole of the land comprised in the contract, subject to such exceptions only as do not substantially affect the character of the tenancy, is let for use as agricultural land.

• (3) A change in user of the land concerned subsequent to the conclusion of a contract of tenancy which involves any breach of the terms of the tenancy shall be disregarded for the purpose of determining whether a contract which was not originally a contract for an agricultural tenancy has subsequently become one unless it is effected with the landlord’s permission, consent or acquiescence.

• (4) In this Act “agricultural land” means—

• (a) land used for agriculture which is so used for the purposes of a trade or business, and

• (b) any other land which, by virtue of a designation under section 109(1) of the Agriculture Act 1947, is agricultural land within the meaning of that Act.

• (5) In this Act “contract of tenancy” means a letting of land, or agreement for letting land, for a term of years or from year to year; and for the purposes of this definition a letting of land, or an agreement for letting land, which, by virtue of subsection (6) of section 149 of the Law of Property Act 1925, takes effect as such a letting of land or agreement for letting land as is mentioned in that subsection shall be deemed to be a letting of land or, as the case may be, an agreement for letting land, for a term of years.

Restriction on letting agricultural land for less than from year to year

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• (1) An agreement to which this section applies shall take effect, with the necessary modifications, as if it were an agreement for the letting of land for a tenancy from year to year unless the agreement was approved by the Minister before it was entered into.

• (2) Subject to subsection (3) below, this section applies to an agreement under which—

• (a) any land is let to a person for use as agricultural land for an interest less than a tenancy from year to year, or

• (b) a person is granted a licence to occupy land for use as agricultural land,

if the circumstances are such that if his interest were a tenancy from year to year he would in respect of that land be the tenant of an agricultural holding.

• (3) This section does not apply to an agreement for the letting of land, or the granting of a licence to occupy land—

• (a) made (whether or not it expressly so provides) in contemplation of the use of the land only for grazing or mowing (or both) during some specified period of the year, or

• (b) by a person whose interest in the land is less than a tenancy from year to year and has not taken effect as such a tenancy by virtue of this section.

• (4) Any dispute arising as to the operation of this section in relation to any agreement shall be determined by arbitration under this Act.

• (5) Notwithstanding subsection (4) above, the parties to the agreement may instead refer for third party determination under this Act the dispute that has arisen as to the operation of this section.

Tenancies for two years or more to continue from year to year unless terminated by notice

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• (1) Subject to section 5 below, a tenancy of an agricultural holding for a term of two years or more shall, instead of terminating on the term date, continue (as from that date) as a tenancy from year to year, but otherwise on the terms of the original tenancy so far as applicable, unless—

• (a) not less than one year nor more than two years before the term date a written notice has been given by either party to the other of his intention to terminate the tenancy, or

• (b) section 4 below applies.

• (2) A notice given under subsection (1) above shall be deemed, for the purposes of this Act, to be a notice to quit.

• (3) This section does not apply to a tenancy which, by virtue of subsection (6) of section 149 of the Law of Property Act 1925, takes effect as such a term of years as is mentioned in that subsection.

• (4) In this section “term date”, in relation to a tenancy granted for a term of years, means the date fixed for the expiry of that term.

Death of tenant before term date

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• (1) This section applies where—

• (a) a tenancy such as is mentioned in subsection (1) of section 3 above is granted on or after 12th September 1984 to any person or persons,

• (b) the person, or the survivor of the persons, dies before the term date, and

• (c) no notice effective to terminate the tenancy on the term date has been given under that subsection.

• (2) Where this section applies, the tenancy, instead of continuing as mentioned in section 3(1) above—

• (a) shall, if the death is one year or more before the term date, terminate on that date, or

• (b) shall, if the death is at any other time, continue (as from the term date) for a further period of twelve months, but otherwise on the terms of the tenancy so far as applicable, and shall accordingly terminate on the first anniversary of the term date.

• (3) For the purposes of the provisions of this Act with respect to compensation any tenancy terminating in accordance with this section shall be deemed to terminate by reason of a notice to quit given by the landlord of the holding.

• (4) In this section “term date” has the same meaning as in section 3 above.

Restriction on agreements excluding effect of section 3

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• (1) Except as provided in this section, section 3 above shall have effect notwithstanding any agreement to the contrary.

• (2) Where before the grant of a tenancy of an agricultural holding for a term of not less than two, and not more than five, years—

• (a) the persons who will be the landlord and the tenant in relation to the tenancy agree that section 3 above shall not apply to the tenancy, and

• (b) those persons make a joint application in writing to the Minister for his approval of that agreement, and

• (c) the Minister notifies them of his approval,

section 3 shall not apply to the tenancy if it satisfies the requirements of subsection (3) below.

• (3) A tenancy satisfies the requirements of this subsection if the contract of tenancy is in writing and it, or a statement endorsed upon it, indicates (in whatever terms) that section 3 does not apply to the tenancy.

Part II — Provisions Affecting Tenancy During its Continuance

Written tenancy agreements

Right to written tenancy agreement

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• (1) Where in respect of a tenancy of an agricultural holding—

• (a) there is not in force an agreement in writing embodying all the terms of the tenancy (including any model clauses incorporated in the contract of tenancy by virtue of section 7 below), or

• (b) such an agreement in writing is in force but the terms of the tenancy do not make provision for one or more of the matters specified in Schedule 1 to this Act,

the landlord or tenant of the holding may, if he has requested the other to enter into an agreement in writing embodying all the terms of the tenancy and containing provision for all of the said matters but no such agreement has been concluded, refer the terms of the tenancy to arbitration under this Act.

• (1A) Where the landlord or tenant has the right under subsection (1) above to refer the terms of the tenancy to arbitration under this Act, the landlord and tenant may instead refer the terms of the tenancy for third party determination under this Act.

• (2) On any such reference the arbitrator in his award or (as the case may be) the third party in his determination—

• (a) shall specify the existing terms of the tenancy, subject to any variations agreed between the landlord and the tenant,

• (b) in so far as those terms as so varied neither make provision for, nor make provision inconsistent with, the matters specified in Schedule 1 to this Act, shall make provision for all of the said matters having such effect as may be agreed between the landlord and the tenant or, in default of agreement, as appears to the arbitrator or third party to be reasonable and just between them, and

• (c) may include any further provisions relating to the tenancy which may be agreed between the landlord and the tenant.

• (3) Where it appears to the arbitrator or third party on a reference under this section that, by reason of any provision which he is required to include in his award or (as the case may be) his determination, it is equitable that the rent of the holding should be varied, he may vary the rent accordingly.

• (4) The award of an arbitrator or (as the case may be) the determination of a third party under this section shall have effect as if the terms and provisions specified and made in the award or determination were contained in an agreement in writing entered into by the landlord and the tenant and having effect (by way of variation of the agreement previously in force in respect of the tenancy) as from the making of the award or determination or, if the award or determination so provides, from such later date as may be specified in it.

• (5) Where in respect of a tenancy of an agricultural holding—

• (a) the terms of the tenancy neither make provision for, nor make provision inconsistent with, the matter specified in paragraph 9 of Schedule 1 to this Act, and

• (b) the landlord requests the tenant in writing to enter into such an agreement as is mentioned in subsection (1) above containing provision for all of the matters specified in that Schedule,

the tenant may not without the landlord’s consent in writing assign, sub-let or part with possession of the holding or any part of it during the period while the determination of the terms of the tenancy is pending; and any transaction entered into in contravention of this subsection shall be void.

• (6) The period mentioned in subsection (5) above is the period beginning with the date of service of the landlord’s request on the tenant and ending with the date on which an agreement is concluded in accordance with that request or (as the case may be) with the date on which the award of an arbitrator or the determination of a third party on a reference under this section relating to the tenancy takes effect.

Fixed equipment

The model clauses

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• (1) The Minister may, after consultation with such bodies of persons as appear to him to represent the interests of landlords and tenants of agricultural holdings, make regulations prescribing terms as to the maintenance, repair and insurance of fixed equipment (in this Act referred to as “the model clauses”).

• (2) Regulations under this section may make provision for any matter arising under them to be determined by arbitration or third party determination under this Act.

• (3) The model clauses shall be deemed to be incorporated in every contract of tenancy of an agricultural holding except in so far as they would impose on one of the parties to an agreement in writing a liability which under the agreement is imposed on the other.

Arbitration where terms of written agreement are inconsistent with the model clauses

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• (1) This section applies where an agreement in writing relating to a tenancy of an agricultural holding effects substantial modifications in the operation of regulations under section 7 above.

• (2) Where this section applies, then, subject to subsection (6) below, the landlord or tenant of the holding may, if he has requested the other to vary the terms of the tenancy as to the maintenance, repair and insurance of fixed equipment so as to bring them into conformity with the model clauses but no agreement has been reached on the request, refer those terms of the tenancy to arbitration under this Act.

• (2A) Where the landlord or tenant has the right under subsection (2) above to refer the terms of the tenancy as to the maintenance, repair and insurance of fixed equipment to arbitration under this Act (or would have that right but for subsection (6) below), the landlord and tenant may instead refer those terms for third party determination under this Act.

• (3) On any reference under this section the arbitrator or third party shall consider whether (disregarding the rent payable for the holding) the terms referred to arbitration or (as the case may be) for third party determination are justifiable having regard to the circumstances of the holding and of the landlord and the tenant, and, if he determines that they are not so justifiable, he may by his award or determination vary them in such manner as appears to him reasonable and just between the landlord and tenant.

• (4) Where it appears to the arbitrator or third party on any reference under this section that by reason of any provision included in his award or (as the case may be) his determination it is equitable that the rent of the holding should be varied, he may vary the rent accordingly.

• (5) The award or determination of an arbitrator or (as the case may be) the determination of a third party under this section shall have effect as if the terms and provisions specified and made in the award were contained in an agreement in writing entered into by the landlord and the tenant and having effect (by way of variation of the agreement previously in force in respect of the tenancy) as from the making of the award or determination or, if the award or determination so provides, from such later date as may be specified in it.

• (6) Where there has been a reference to arbitration or third party determination under this section relating to a tenancy, no subsequent reference to arbitration relating to that tenancy shall be made before the expiry of three years from the coming into effect of the award of the arbitrator or (as the case may be) the determination of the third party on the previous reference.

Transitional arrangements where liability in respect of fixed equipment transferred

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• (1) Where by virtue of section 6, 7 or 8 above the liability for the maintenance or repair of any item of fixed equipment is transferred from the tenant to the landlord, the landlord may within the prescribed period beginning with the date on which the transfer takes effect require that there shall be determined by arbitration under this Act and paid by the tenant the amount of any relevant compensation.

• (1A) Where the landlord has the right under subsection (1) above to require that there shall be determined by arbitration under this Act and paid by the tenant the amount of any relevant compensation (or would have that right but for the expiry of the prescribed period), the landlord and tenant may instead refer for third party determination under this Act the question of the amount of any relevant compensation that the tenant is to be required to pay.

• (2) subsections (1) and (1A) above“relevant compensation” means compensation which would have been payable either under subsection (1) of section 71 below or in accordance with subsection (3) of that section, in respect of any previous failure by the tenant to discharge the liability mentioned in subsection (1) above, if the tenant had quitted the holding on the termination of his tenancy at the date on which the transfer takes effect.

• (3) Where by virtue of section 6, 7 or 8 above the liability for the maintenance or repair of any item of fixed equipment is transferred from the landlord to the tenant, any claim by the tenant in respect of any previous failure by the landlord to discharge the said liability shall, if the tenant within the prescribed period beginning with the date on which the transfer takes effect so requires, be determined by arbitration under this Act.

• (3A) Where the tenant has the right under subsection (3) above to require that there shall be determined by arbitration under this Act a claim of a type described in that subsection (or would have that right but for the expiry of the prescribed period), the tenant and landlord may instead refer the claim for third party determination under this Act.

• (4) Where the terms of a tenancy of an agricultural holding as to the maintenance, repair or insurance of fixed equipment (whether established by the operation of regulations under section 7 above or by agreement) are varied by new regulations made under that section, then, if a reference is made under section 6 above within the prescribed period after the coming into operation of the new regulations, the arbitrator or third party shall, for the purposes of subsection (2) of the said section 6, disregard the variation.

Tenant's right to remove fixtures and buildings

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• (1) Subject to the provisions of this section—

• (a) any engine, machinery, fencing or other fixture (of whatever description) affixed, whether for the purposes of agriculture or not, to an agricultural holding by the tenant, and

• (b) any building erected by him on the holding,

shall be removable by the tenant at any time during the continuance of the tenancy or before the expiry of two months from its termination, and shall remain his property so long as he may remove it by virtue of this subsection.

• (2) Subsection (1) above shall not apply—

• (a) to a fixture affixed or a building erected in pursuance of some obligation,

• (b) to a fixture affixed or a building erected instead of some fixture or building belonging to the landlord,

• (c) to a building in respect of which the tenant is entitled to compensation under this Act or otherwise, or

• (d) to a fixture affixed or a building erected before 1st January 1884.

• (3) The right conferred by subsection (1) above shall not be exercisable in relation to a fixture or building unless the tenant—

• (a) has paid all rent owing by him and has performed or satisfied all his other obligations to the landlord in respect of the holding, and