Agricultural Holdings Act 1986

• (3) Compensation shall not be recoverable under this section in respect of any matter arising before the date of the making of the record referred to in subsection (2) above or, if more than one such record has been made, the first of them.

• (4) In assessing the value of an agricultural holding for the purposes of this section due allowance shall be made for any compensation agreed or awarded to be paid to the tenant for an improvement falling within section 64(1) or (4) above or (subject to paragraph 8 of Schedule 12 to this Act) for any such matter as is specified in Part II of Schedule 8 to this Act, being an improvement or matter which has caused, or contributed to, the benefit.

• (5) Nothing in this section shall entitle a tenant to recover for an improvement falling within section 64(1) or (4) above or an improvement to which the provisions of this Act relating to market gardens apply or (subject to the said paragraph 8) for any such matter as is specified in Part II of Schedule 8 to this Act, any compensation which he is not entitled to recover apart from this section.

Compensation to landlord for deterioration of holding

Compensation for deterioration of particular parts of holding

71

• (1) The landlord of an agricultural holding shall be entitled to recover from a tenant of the holding, on the tenant’s quitting the holding on the termination of the tenancy, compensation in respect of the dilapidation or deterioration of, or damage to, any part of the holding or anything in or on the holding caused by non-fulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry.

• (2) Subject to subsection (5) below, the amount of the compensation payable under subsection (1) above shall be the cost, as at the date of the tenant’s quitting the holding, of making good the dilapidation, deterioration or damage.

• (3) Notwithstanding anything in this Act, the landlord may, in lieu of claiming compensation under subsection (1) above, claim compensation in respect of matters specified in that subsection under and in accordance with a written contract of tenancy.

• (4) Where the landlord claims compensation in accordance with subsection (3) above—

• (a) compensation shall be so claimed only on the tenant’s quitting the holding on the termination of the tenancy, and

• (b) compensation shall not be claimed in respect of any one holding both under such a contract as is mentioned in that subsection and under subsection (1) above;

and for the purposes of paragraph (b) above any claim under section 9(1) above shall be disregarded.

• (5) The amount of the compensation payable under subsection (1) above, or in accordance with subsection (3) above, shall in no case exceed the amount (if any) by which the value of the landlord’s reversion in the holding is diminished owing to the dilapidation, deterioration or damage in question.

Compensation for general deterioration of holding

72

• (1) This section applies where, on the quitting of an agricultural holding by the tenant on the termination of the tenancy, the landlord shows that the value of the holding generally has been reduced by reason of any such dilapidation, deterioration or damage as is mentioned in section 71(1) above or otherwise by non-fulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry.

• (2) Where this section applies, the landlord shall be entitled to recover from the tenant compensation for the matter in question, in so far as the landlord is not compensated for it under subsection (1), or in accordance with subsection (3), of section 71 above.

• (3) The amount of the compensation payable under this section shall be equal to the decrease attributable to the matter in question in the value of the holding as a holding, having regard to the character and situation of the holding and the average requirements of tenants reasonably skilled in husbandry.

• (4) Compensation shall not be recoverable under this section unless the landlord has, not later than one month before the termination of the tenancy, given notice in writing to the tenant of his intention to claim such compensation.

Deterioration of holding: successive tenancies

73

• (1) Where the tenant of an agricultural holding has remained on the holding , or on any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding, during two or more tenancies his landlord shall not be deprived of his right to compensation under section 71 or 72 above in respect of any dilapidation, deterioration or damage by reason only that the tenancy during which an act or omission occurred which in whole or in part caused the dilapidation, deterioration or damage was a tenancy other than the tenancy at the termination of which the tenant quits the holding.

• (2) Where this Act applies in relation to any tenancy referred to in subsection (1) above by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in that subsection to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value.

Supplementary provisions with respect to compensation

Termination of tenancy of part of holding

74

• (1) Where the landlord of an agricultural holding resumes possession of part of the holding by virtue of section 31 or 43(2) above, the provisions of this Act with respect to compensation shall apply to that part of the holding as if it were a separate holding which the tenant had quitted in consequence of a notice to quit.

• (2) Where the landlord of an agricultural holding resumes possession of part of the holding in pursuance of a provision in that behalf contained in the contract of tenancy—

• (a) the provisions of this Act with respect to compensation shall apply to that part of the holding as if it were a separate holding which the tenant had quitted in consequence of a notice to quit, but

• (b) the arbitrator or (as the case may be) the third party appointed under section 84A below in assessing the amount of compensation payable to the tenant, except the amount of compensation under section 60(2)(b) above, shall take into consideration any benefit or relief allowed to the tenant under the contract of tenancy in respect of the land possession of which is resumed by the landlord.

• (3) Where a person entitled to a severed part of the reversionary estate in an agricultural holding resumes possession of part of the holding by virtue of a notice to quit that part given to the tenant by virtue of section 140 of the Law of Property Act 1925 the provisions of this Act with respect to compensation shall apply to that part of the holding as if—

• (a) it were a separate holding which the tenant had quitted in consequence of the notice to quit, and

• (b) the person resuming possession were the landlord of that separate holding.

• (4) References in this Act to the termination of the tenancy of, or (as the case may be) of part of, an agricultural holding include references to the resumption of possession of part of an agricultural holding in circumstances within subsection (1), (2) or (3) above.

Compensation where reversionary estate in holding is severed

75

• (1) Where the reversionary estate in an agricultural holding is for the time being vested in more than one person in several parts, the tenant shall be entitled, on quitting the entire holding, to require that any compensation payable to him under this Act shall be determined as if the reversionary estate were not so severed.

• (2) Where subsection (1) above applies, the arbitrator or (as the case may be) the third party shall, where necessary, apportion the amount awarded or determined by third party determination between the persons who for the purposes of this Act together constitute the landlord of the holding, and any additional costs of the awardor determination caused by the apportionment shall be directed by the arbitratoror third party to be paid by those persons in such proportions as he shall determine.

Restrictions on compensation for things done in compliance with this Act

76

• (1) Notwithstanding anything in this Act or any custom or agreement—

• (a) no compensation shall be payable to the tenant of an agricultural holding in respect of anything done in pursuance of an order under section 14(4) above,

• (b) in assessing compensation to an outgoing tenant of an agricultural holding where land has been ploughed up in pursuance of a direction under that section, the value per hectare of any tenant’s pasture comprised in the holding shall be taken not to exceed the average value per hectare of the whole of the tenant’s pasture comprised in the holding on the termination of the tenancy.

• (2) In subsection (1) above “tenant’s pasture” means pasture laid down at the expense of the tenant or paid for by the tenant on entering on the holding.

• (3) The tenant of an agricultural holding shall not be entitled to any compensation for a relevant improvement specified in Part I of Schedule 8 to this Act or (subject to paragraph 8 of Schedule 12 to this Act) for any such matter as is specified in Part II of Schedule 8 if it is an improvement or matter made or effected for the purposes of section 15(4) above.

No compensation under custom for improvement or tenant-right matter

77

• (1) A landlord or tenant of an agricultural holding shall not be entitled under custom to any compensation from the other for any improvement, whether or not one in respect of the carrying out of which compensation is provided under this Act, or (subject to paragraph 8 of Schedule 12 to this Act) for any matter specified in Part II of Schedule 8 to this Act or otherwise.

• (2) Subsection (1) above shall not apply to compensation for an improvement of a kind specified in Schedule 7 or Part I of Schedule 8 to this Act begun before 1st March 1948.

Extent to which compensation recoverable under agreements

78

• (1) Save as expressly provided in this Act, in any case for which apart from this section the provisions of this Act provide for compensation, a tenant or landlord shall be entitled to compensation in accordance with those provisions and not otherwise, and shall be so entitled notwithstanding any agreement to the contrary.

• (2) Where the landlord and tenant of an agricultural holding enter into an agreement in writing for any such variation of the terms of the contract of tenancy as could be made by direction or order under section 14 above, the agreement may provide for the exclusion of compensation in the same manner as under section 76(1) above.

• (3) Nothing in the provisions of this Act, apart from this section, shall be construed as disentitling a tenant or landlord to compensation in any case for which the said provisions do not provide for compensation, but (subject to paragraph 8 of Schedule 12 to this Act) a claim for compensation in any such case shall not be enforceable except under an agreement in writing.

Part VI — Market Gardens and Smallholdings

Additional rights with respect to improvements for tenants of market gardens

79

• (1) Subsections (2) to (5) below apply in the case of an agricultural holding in respect of which it is agreed by an agreement in writing that the holding shall be let or treated as a market garden; and where the land to which such agreement relates consists of part of an agricultural holding only, those subsections shall apply as if that part were a separate holding.

• (2) The provisions of this Act shall apply as if improvements of a kind specified in Schedule 10 to this Act begun on or after 1st March 1948 were included amongst the improvements specified in Part I of Schedule 8 to this Act and as if improvements begun before that day consisting of the erection or enlargement of buildings for the purpose of the trade or business of a market gardener were included amongst the improvements specified in Part II of Schedule 9 to this Act.

• (3) In section 10 above—

• (a) subsection (2)(c) shall not exclude that section from applying to any building erected by the tenant on the holding or acquired by him for the purposes of his trade or business as a market gardener, and

• (b) subsection (2)(d) shall not exclude that section from applying to any building acquired by him for those purposes (whenever erected).

• (4) It shall be lawful for the tenant to remove all fruit trees and fruit bushes planted by him on the holding and not permanently set out, but if the tenant does not remove them before the termination of his tenancy they shall remain the property of the landlord and the tenant shall not be entitled to any compensation in respect of them.

• (5) The right of an incoming tenant to claim compensation in respect of the whole or part of an improvement which he has purchased may be exercised although his landlord has not consented in writing to the purchase.

Power of Tribunal to direct holding to be treated as market garden

80

• (1) Where the tenant of an agricultural holding desires to make on the holding or any part of it an improvement specified in Schedule 10 to this Act and the landlord refuses, or fails within a reasonable time, to agree in writing that the holding or that part of it, as the case may be, shall be treated as a market garden, the tenant may apply to the Tribunal for a direction under subsection (2) below.

• (2) On such an application, the Tribunal may, after being satisfied that the holding or part is suitable for the purposes of market gardening, direct that subsections (2) to (5) of section 79 above shall, either in respect of all the improvements specified in the said Schedule 10 or in respect of some only of those improvements, apply to the holding or to that part of it; and the said subsections shall apply accordingly as respects any improvements executed after the date on which the direction is given.

• (3) Where a direction is given under subsection (2) above, then, if the tenancy is terminated by notice to quit given by the tenant or by reason of the tenant becoming insolvent, the tenant shall not be entitled to compensation in respect of improvements specified in the direction unless the conditions mentioned in subsection (4) below are satisfied.

• (4) Those conditions are that—

• (a) the tenant not later than one month after the date on which the notice to quit is given or the date of the insolvency, as the case may be, or such later date as may be agreed, produces to the landlord an offer in writing by a substantial and otherwise suitable person (being an offer which is to hold good for a period of three months from the date on which it is produced)—

• (i) to accept a tenancy of the holding from the termination of the existing tenancy, and on the terms and conditions of that tenancy so far as applicable, and,

• (ii) subject as hereinafter provided, to pay to the outgoing tenant all compensation payable under this Act or under the contract of tenancy, and

• (b) the landlord fails to accept the offer within three months after it has been produced.

• (5) If the landlord accepts any such offer as is mentioned in subsection (4) above, the incoming tenant shall pay to the landlord on demand all sums payable to him by the outgoing tenant on the termination of the tenancy in respect of rent or breach of contract or otherwise in respect of the holding, and any amount so paid may, subject to any agreement between the outgoing tenant and incoming tenant, be deducted by the incoming tenant from any compensation payable by him to the outgoing tenant.

• (6) A direction under subsection (2) above may be given subject to such conditions (if any) for the protection of the landlord as the Tribunal think fit.

• (7) Without prejudice to the generality of subsection (6) above, where a direction relates to part only of an agricultural holding, it may, on the application of the landlord, be given subject to the condition that it shall become operative only in the event of the tenant’s consenting to the division of the holding into two parts, of which one shall be that to which the direction relates, to be held at rents settled, in default of agreement, by arbitration under this Act, but otherwise on the same terms and conditions (so far as applicable) as those on which the holding is held.

• (7A) Notwithstanding the provision made by subsection (7) above for rents to be settled by arbitration, the landlord and tenant may instead refer those rents to be settled by third party determination under this Act.

• (8) A new tenancy created by the acceptance of a tenant in accordance with the provisions of this section on the terms and conditions of the existing tenancy shall be deemed for the purposes of Schedule 2 to this Act not to be a new tenancy.

• (9) For the purposes of subsection (3) above a person has become insolvent if any of the events mentioned in section 96(2)(a) or (b) below has occurred; and the reference in subsection (4) above to the date of the insolvency is a reference to the date of the occurrence of the event in question.

Agreements as to compensation relating to market gardens

81

• (1) Where an agreement in writing secures to the tenant of an agricultural holding, for an improvement for which compensation is payable by virtue of section 79 or section 80 above, fair and reasonable compensation having regard to the circumstances existing when the agreement was made, the compensation so secured shall, as respects that improvement, be substituted for compensation under this Act.

• (2) The landlord and tenant of an agricultural holding who have agreed that the holding shall be let or treated as a market garden may by agreement in writing substitute, for the provisions as to compensation which would otherwise be applicable to the holding, the provisions as to compensation known as the “Evesham custom”, and set out in subsections (3) to (5) of section 80 above.

Application of section 15 to smallholdings

82

• (1) Section 15(1) above shall not apply to a tenancy of land let as a smallholding by a smallholdings authority or by the Minister in pursuance of a scheme, approved by the Minister for the purposes of this section, which—

• (a) provides for the farming of such holdings on a co-operative basis,

• (b) provides for the disposal of the produce of such holdings, or

• (c) provides other centralised services for the use of the tenants of such holdings.

• (2) Where it appears to the Minister that the provisions of any scheme approved by him for the purposes of this section are not being satisfactorily carried out, he may, in accordance with subsection (3) below, withdraw his approval to the scheme.

• (3) Before withdrawing his approval to a scheme the Minister shall—

• (a) serve a notice on the persons responsible for the management of the scheme specifying a date (not being earlier than one month after the service of the notice) and stating that on that date his approval to the scheme will cease to have effect and that, accordingly, section 15(1) will then apply to the tenancies granted in pursuance of the scheme,

• (b) give to those persons an opportunity of making representations to him;

and, if the said notice is not withdrawn by the Minister before the said date, section 15(1) shall as from that date apply to the said tenancies.

Part VII — Miscellaneous and Supplemental

Settlement of claims on termination of tenancy

83

• (1) Without prejudice to any other provision of this Act, any claim of whatever nature by the tenant or landlord of an agricultural holding against the other, being a claim which arises—

• (a) under this Act or any custom or agreement, and

• (b) on or out of the termination of the tenancy of the holding or part of it,

shall, subject to the provisions of this section, be determined by arbitration under this Act.

• (1A) Notwithstanding subsection (1) above, but subject to the provisions of subsections (2) and (3) below, the tenant and landlord may instead refer for third party determination under this Act any such claim as is mentioned in subsection (1).

• (2) No such claim as is mentioned in subsection (1) above shall be enforceable unless before the expiry of two months from the termination of the tenancy the claimant has served notice in writing on his landlord or tenant, as the case may be, of his intention to make the claim.

• (3) A notice under subsection (2) above shall specify the nature of the claim; but it shall be sufficient if the notice refers to the statutory provision, custom or term of an agreement under which the claim is made.

• (4) An arbitrator may not be appointed under section 84(2) below to determine a claim which has become enforceable by virtue of the service of a notice under subsection (2) above before the expiry of eight months from the termination of the tenancy.

• (5) Where by the expiry of the said period any such claim as is mentioned in subsection (1) above has not been settled, it shall be determined by arbitration under this Act.

• (6) Where a tenant lawfully remains in occupation of part of an agricultural holding after the termination of a tenancy, references in subsections (2) and (4) above to the termination of the tenancy shall, in the case of a claim relating to that part of the holding, be construed as references to the termination of the occupation.

Arbitrations

84

• (1) Any matter which by or by virtue of this Act or regulations made under this Act is required to be determined by arbitration under this Act shall, notwithstanding any agreement (under a contract of tenancy or otherwise) providing for a different method of arbitration, be determined by the arbitration of a single arbitrator . . . .

• (2) The arbitrator shall be a person appointed by agreement between the parties or, in default of agreement, a person appointed on the application of either of the parties by a professional authority.

• (2A) A party may not make an application to a professional authority under subsection (2) in relation to a matter if the other party has already made an application to a professional authority under that subsection in relation to that matter.

• (3) If the arbitrator dies, or is incapable of acting, a new arbitrator may be appointed as if no arbitrator had been appointed.

• (4) No application may be made to a professional authority for an arbitrator to be appointed by that authority under this section unless the application is accompanied by such fee as may be prescribed as the fee for such an application; but once the fee has been paid in connection with any such application no further fee shall be payable in connection with any subsequent application for the appointment by that authority of a new arbitrator in relation to that arbitration.

• (5) Where by virtue of this Act compensation under an agreement is to be substituted for compensation under this Act for improvements or for any such matters as are specified in Part II of Schedule 8 to this Act, the arbitrator shall award compensation in accordance with the agreement instead of in accordance with this Act.

• (6) In this section “professional authority” means—

• (a) the President of the Royal Institution of Chartered Surveyors,

• (b) the President of the Central Association of Agricultural Valuers, or

• (c) the Chair of the Agricultural Law Association.

• (7) The appropriate authority may by regulations amend this section so as to—

• (a) include a person in, or remove a person from, the definition of “professional authority”;

• (b) reflect changes in the name or internal organisation of any body mentioned in that definition.

• (8) In subsection (7) “appropriate authority” means—

• (a) the Secretary of State, in relation to England, and

• (b) the Welsh Ministers, in relation to Wales.

Enforcement

85

• (1) Subject to subsection (3) below, where a sum agreed , awarded or determined by third party determination under this Act to be paid for compensation, costs or otherwise by a landlord or tenant of an agricultural holding is not paid within fourteen days after the time when the payment becomes due, it shall be recoverable, if the county court so orders, as if it were payable under an order of that court.

• (2) Where a sum becomes due to a tenant of an agricultural holding in respect of compensation from the landlord, and the landlord fails to discharge his liability within the period of one month from the date on which the sum becomes due, the tenant shall be entitled to obtain from the Minister an order charging the holding with payment of the amount due.

• (3) Where the landlord of an agricultural holding is entitled to receive the rents and profits of the holding otherwise than for his own benefit (whether as trustee or in any other character)—

• (a) he shall not be under any liability to pay any sum agreed or awarded under this Act to be paid to the tenant or awarded under this Act to be paid by the landlord, and it shall not be recoverable against him personally, but

• (b) if he fails to pay any such sum to the tenant for one month after it becomes due, the tenant shall be entitled to obtain from the Minister an order charging the holding with payment of the sum.

Power of landlord to obtain charge on holding

86

• (1) Where the landlord of an agricultural holding—

• (a) has paid to the tenant of the holding an amount due to him under this Act, or under custom or agreement, or otherwise, in respect of compensation for an improvement falling within section 64(1) or (4) above, for any such matter as is specified in Part II of Schedule 8 to this Act or for disturbance, or

• (b) has defrayed the cost of the execution by him, in pursuance of a notice served under section 67(5) above, of an improvement specified in Part II of Schedule 7 to this Act,

he shall be entitled to obtain from the Minister an order charging the holding or any part of it with repayment of the amount of the compensation or the amount of the cost, as the case may be.

• (2) Where there falls to be determined by arbitration or third party determination under this Act the amount of compensation for an improvement falling within 64(1) or (4) above or for any such matter as is specified in Part II of Schedule 8 to this Act payment of which entitles the landlord to obtain a charge under subsection (1) above, the arbitrator or (as the case may be) the third party shall, at the request and cost of the landlord, certify—

• (a) the amount of the compensation, and

• (b) the term for which the charge may properly be made having regard to the time at which each improvement or matter in respect of which compensation is awarded is to be deemed to be exhausted.

• (3) Where the landlord of an agricultural holding is entitled to receive the rents and profits of the holding otherwise than for his own benefit (whether as trustee or in any other character) he shall, either before or after paying to the tenant of the holding any sum agreed , awarded or determined by third party determination under this Act to be paid to the tenant for compensation or awarded or determined by third party determination under this Act to be paid by the landlord, be entitled to obtain from the Minister an order charging the holding with repayment of that sum.

• (4) The rights conferred by this section on a landlord of an agricultural holding to obtain an order charging land shall not be exercised by trustees for ecclesiastical or charitable purposes except with the approval in writing of the Charity Commission.

General provisions as to charges under this Act on holdings

87

• (1) An order of the Minister under this Act charging an agricultural holding or any part of an agricultural holding with payment or repayment of a sum shall charge it, in addition, with payment of all costs properly incurred in obtaining the charge.

• (2) Any such order shall be made in favour of the person obtaining the charge and of his executors, administrators and assigns, and the order shall make such provision as to the payment of interest and the payment of the sum charged by instalments, and shall contain such directions for giving effect to the charge, as the Minister thinks fit.

• (3) In the case of a charge under section 86 above the sum charged shall be a charge on the holding or the part of the holding charged, as the case may be, for the landlord’s interest in the holding and for all interests in the holding subsequent to that of the landlord, but so that in any case where the landlord’s interest is an interest in a leasehold, the charge shall not extend beyond the interest of the landlord, his executors, administrators and assigns.

• (4) In the case of a charge under section 86 above where the landlord is not absolute owner of the holding for his own benefit, no instalment or interest shall be made payable after the time when the improvement in respect of which compensation is paid will, in the opinion of the Minister, have become exhausted.

• (5) Notwithstanding anything in any deed, will or other instrument to the contrary, where the estate or interest in an agricultural holding of the landlord is determinable or liable to forfeiture by reason of his creating or suffering any charge on it, that estate or interest shall not be determined or forfeited by reason that the tenant obtains a charge on the holding under section 85(2) above or that the landlord obtains a charge on the holding under section 86 above.

• (6) A charge created under section 85 above or section 74 of the Agricultural Holdings Act 1948 shall rank in priority to any other charge, however and whenever created or arising; and charges created under those sections shall, as between themselves, rank in the order of their creation.

• (7) Any company now or hereafter incorporated by Parliament, and having power to advance money for the improvement of land, may take an assignment of any charge created under section 85(2) or 86(1) above upon such terms and conditions as may be agreed upon between the company and the person entitled to the charge, and may assign any charge of which they have taken an assignment under this subsection.

• (8) Subsection (6) above shall bind the Crown.

Power of limited owners to give consents etc.

88

The landlord of an agricultural holding, whatever his estate or interest in it, may, for the purposes of this Act, give any consent, make any agreement or do or have done to him any other act which he might give, make, do or have done to him if he were owner in fee simple or, if his interest is an interest in a leasehold, were absolutely entitled to that leasehold.

Power of limited owners to apply capital for improvements

89

• (1) Where under powers conferred by the Settled Land Act 1925 . . . capital money is applied in or about the execution of any improvement specified in Schedule 7 to this Act no provision shall be made for requiring the money or any part of it to be replaced out of income, and accordingly any such improvement shall be deemed to be an improvement authorised by Part I of Schedule 3 to the Settled Land Act 1925.

• (2) Where under powers conferred by the Universities and College Estates Act 1925 capital money is applied in payment for any improvement specified in Schedule 7 to this Act no provision shall be made for replacing the money out of income unless the Minister requires such provision to be made under section 26(5) of that Act or, in the case of a university or college to which section 2 of the Universities and College Estates Act 1964 applies, it appears to the university or college to be necessary to make such provision under the said section 26(5) as modified by Schedule I to the said Act of 1964.

Estimation of best rent for purposes of Acts and other instruments

90

In estimating the best rent or reservation in the nature of rent of an agricultural holding for the purposes of any Act of Parliament, deed or other instrument, authorising a lease to be made provided that the best rent, or reservation in the nature of rent, is reserved, it shall not be necessary to take into account against the tenant any increase in the value of the holding arising from any improvements made or paid for by him.

Power of Minister to vary

91

• (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, by order vary the provisions of Schedules 7, 8 and 10 to this Act.

• (2) An order under this section may make such provision as to the operation of this Act in relation to tenancies current when the order takes effect as appears to the Minister to be just having regard to the variation of the said Schedules effected by the order.

Advisory committee on valuation of improvements and tenant-right matters

92

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Service of notices

93

• (1) Any notice, request, demand or other instrument under this Act shall be duly given to or served on the person to or on whom it is to be given or served if it is delivered to him, or left at his proper address, or sent to him by post in a registered letter or by the recorded delivery service.

• (2) Any such instrument shall be duly given to or served on an incorporated company or body if it is given or served on the secretary or clerk of the company or body.

• (3) Any such instrument to be given to or served on a landlord or tenant shall, where an agent or servant is responsible for the control of the management or farming, as the case may be, of the agricultural holding, be duly given or served if given to or served on that agent or servant.

• (4) For the purposes of this section and of section 7 of the Interpretation Act 1978 (service by post), the proper address of any person to or on whom any such instrument is to be given or served shall, in the case of the secretary or clerk of an incorporated company or body, be that of the registered or principal office of the company or body, and in any other case be the last known address of the person in question.

• (5) Unless or until the tenant of an agricultural holding has received—

• (a) notice that the person who before that time was entitled to receive the rents and profits of the holding (“the original landlord”) has ceased to be so entitled, and

• (b) notice of the name and address of the person who has become entitled to receive the rents and profits,

any notice or other document served upon or delivered to the original landlord by the tenant shall be deemed for the purposes of this Act to have been served upon or delivered to the landlord of the holding.

Orders and regulations

94

• (1) Any power to make an order or regulations conferred on the Secretary of State, the Lord Chancellor or the Welsh Ministers by any provision of this Act (except section 85 or 86) shall be exercisable by statutory instrument.

• (2) Any statutory instrument containing an order or regulations made under any provision of this Act (except section 22(4) , 84(4) or 91 ... ) shall be subject to annulment in pursuance of a resolution of

• (a) either House of Parliament, in the case of a statutory instrument made by the Secretary of State or Lord Chancellor, or

• (b) Senedd Cymru, in the case of a statutory instrument made by the Welsh Ministers.

• (3) No regulations shall be made under section 22(4) above or section 84(4) above unless a draft of the regulations has been laid before and approved by a resolution of

• (a) each House of Parliament, in the case of regulations made by the Secretary of State, or

• (b) Senedd Cymru, in the case of regulations made by the Welsh Ministers.

• (4) An order made under section 91 above shall be of no effect unless approved by a resolution of

• (a) each House of Parliament, in the case of an order made by the Secretary of State, or

• (b) Senedd Cymru, in the case of an order made by the Welsh Ministers.

Crown land

95

• (1) The provisions of this Act, except section 11 above, shall apply to land belonging to Her Majesty in right of the Crown or the Duchy of Lancaster and to land belonging to the Duchy of Cornwall, subject in either case to such modifications as may be prescribed.

• (2) For the purposes of this Act—

• (a) as respects land belonging to Her Majesty in right of the Crown, the Crown Estate Commissioners or other the proper officer or body having charge of the land for the time being, or, if there is no such officer or body, such person as Her Majesty may appoint in writing under the Royal Sign Manual, shall represent Her Majesty and shall be deemed to be the landlord,

• (b) as respects land belonging to Her Majesty in right of the Duchy of Lancaster, the Chancellor of the Duchy shall represent Her Majesty and shall be deemed to be the landlord,

• (c) as respects land belonging to the Duchy of Cornwall, such person as the Duke of Cornwall or other the possessor for the time being of the Duchy of Cornwall appoints shall represent the Duke of Cornwall or other the possessor aforesaid, and shall be deemed to be the landlord and may do any act or thing which a landlord is authorised or required to do under this Act.

• (3) Without prejudice to subsection (1) above it is hereby declared that the provisions of this Act, except section 11 above, apply to land notwithstanding that the interest of the landlord or tenant is held on behalf of Her Majesty for the purposes of any government department; but those provisions shall, in their application to any land in which an interest is so held, have effect subject to such modifications as may be prescribed.

• (4) Any compensation payable under this Act by the Chancellor of the Duchy of Lancaster for long-term improvements shall, and any compensation so payable under section 60(2)(b) or 62 above may, be raised and paid as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy within section 25 of the Duchy of Lancaster Act 1817; and any compensation so payable under this Act for short-term improvements and tenant-right matters shall be paid out of the annual revenues of the Duchy.

• (5) Any compensation payable under this Act by the Duke of Cornwall or other the possessor for the time being of the Duchy of Cornwall for long-term improvements shall, and any compensation so payable under section 60(2)(b) or 62 above may, be paid and advances therefor made in the manner and subject to the provisions of section 8 of the Duchy of Cornwall Management Act 1863 with respect to improvements of land mentioned in that section.

• (6) Nothing in subsection (5) above shall be taken as prejudicing the operation of the Duchy of Cornwall Management Act 1982.

• (7) In this section—

• “long-term improvements” means relevant improvements specified in Schedule 7 to this Act, improvements falling within section 64(4) above and improvements specified in Schedule 10 to this Act;

• “short-term improvements and tenant-right matters” means relevant improvements specified in Part I of Schedule 8 to this Act and such matters as are specified in Part II of that Schedule.

Interpretation

96

• (1) In this Act, unless the context otherwise requires—

• “agreement” includes an agreement arrived at by means of valuation or otherwise, and “agreed” has a corresponding meaning;

• “agricultural holding” has the meaning given by section 1 above;

• “agricultural land” has the meaning given by section 1 above;

• “agricultural unit” means land which is an agricultural unit for the purposes of the Agriculture Act 1947;

• “agriculture” includes horticulture, fruit growing, seed growing, dairy farming and livestock breeding and keeping, the use of land as grazing land, meadow land, osier land, market gardens and nursery grounds, and the use of land for woodlands where that use is ancillary to the farming of land for other agricultural purposes, and “agricultural” shall be construed accordingly;

• “building” includes any part of a building;

• “Case A”, “Case B” (and so on) refer severally to the Cases set out and so named in Part I of Schedule 3 to this Act;

• “contract of tenancy” has the meaning given by section 1 above;

• ...

• “fixed equipment” includes any building or structure affixed to land and any works on, in, over or under land, and also includes anything grown on land for a purpose other than use after severance from the land, consumption of the thing grown or of its produce, or amenity, and any reference to fixed equipment on land shall be construed accordingly;

• “landlord” means any person for the time being entitled to receive the rents and profits of any land;

• “livestock” includes any creature kept for the production of food, wool, skins, or fur or for the purpose of its use in the farming of land or the carrying on in relation to land of any agricultural activity;

• “local government funds” means, in relation to any grant in respect of an improvement executed by the landlord or tenant of an agricultural holding, the funds of any body which, under or by virtue of any enactment, has power to make grants in respect of improvements of the description in question within any particular area (whether or not it is a local authority for that area);

• “the Minister” means—

• (a) in relation to England, the Secretary of State, and

• (b) in relation to Wales, the Secretary of State;

• “the model clauses” has the meaning given by section 7 above;

• “pasture” includes meadow;

• “prescribed” means prescribed by the Minister by regulations;

• “relevant improvement” has the meaning given by section 64(2) above;

• “tenant” means the holder of land under a contract of tenancy, and includes the executors, administrators, assigns, or trustee in bankruptcy of a tenant, or other person deriving title from a tenant;

• “termination”, in relation to a tenancy, means the cesser of the contract of tenancy by reason of effluxion of time or from any other cause;

• “third party” and “third party determination” have the meaning given by section 84A(4) above;

• “the Tribunal” means—where the agricultural holding (or the greater part of the holding) is in England, the First-tier Tribunal; andwhere the agricultural holding (or the greater part of the holding) is in Wales, the Agricultural Land Tribunal (see section 73 of the Agriculture Act 1947).

• (2) For the purposes of this Act, a tenant is insolvent if—

• (a) he has been made bankrupt or has made a composition or arrangement with his creditors, or

• (b) where the tenant is a body corporate, a winding-up order has been made with respect to it or a resolution for voluntary winding-up has been passed with respect to it (other than a resolution passed solely for the purposes of its reconstruction or of its amalgamation with another body corporate).

• (3) Sections 10 and 11 of the Agriculture Act 1947 (which specify the circumstances in which an owner of agricultural land is deemed for the purposes of that Act to fulfil his responsibilities to manage the land in accordance with the rules of good estate management and an occupier of such land is deemed for those purposes to fulfil his responsibilities to farm it in accordance with the rules of good husbandry) shall apply for the purposes of this Act.

• (4) References in this Act to the farming of land include references to the carrying on in relation to the land of any agricultural activity.

• (5) References in this Act to the use of land for agriculture include, in relation to land forming part of an agricultural unit, references to any use of the land in connection with the farming of the unit.

• (6) The designations of landlord and tenant shall continue to apply to the parties until the conclusion of any proceedings taken under or in pursuance of this Act in respect of compensation.

Saving for other rights etc.

97

Subject to sections 15(5) and 83(1) above in particular, and to any other provision of this Act which otherwise expressly provides, nothing in this Act shall prejudicially affect any power, right or remedy of a landlord, tenant or other person vested in or exercisable by him by virtue of any other Act or law or under any custom of the country or otherwise, in respect of a contract of tenancy or other contract, or of any improvements, deteriorations, waste, emblements, tillages, away-going crops, fixtures, tax, rate, tithe rentcharge, rent or other thing.

Application of Act to old tenancies etc.

98

• (1) Subject to sections 4 and 34 above, to the provisions of Schedule 12 to this Act and to any other provision to the contrary, this Act applies in relation to tenancies of agricultural holdings whenever created, agreements whenever made and other things whenever done.

• (2) The provisions of this Act shall apply in relation to tenancies of agricultural holdings granted or agreed to be granted, agreements made and things done before the dates specified in paragraphs 1 to 5 and 10 of Schedule 12 to this Act (being dates no later than 1st March 1948) subject to the modifications there specified.

• (3) Paragraphs 6 to 9 of Schedule 12 to this Act, which make provision with respect to compensation for tenant-right matters in relation to tenants of agricultural holdings who entered into occupation before the dates specified in those paragraphs (being dates no later than 31st December 1951), shall have effect.

Transitional provisions and savings

99

• (1) Schedule 13 to this Act, which excepts from the operation of this Act certain cases current at the commencement of this Act and contains other transitional provisions and savings, shall have effect.

• (2) The re-enactment in paragraphs 6 to 8 of Schedule 12 to this Act of provisions contained in the Agricultural Holdings Act (Variation of Fourth Schedule) Order 1951 shall be without prejudice to the validity of those provisions; and any question as to the validity of any of those provisions shall be determined as if the re-enacting provisions of this Act were contained in a statutory instrument made under the powers under which the original provision was made.

• (3) Nothing in this Act (except paragraph 8 of Schedule 13) shall be taken as prejudicing the operation of sections 16 and 17 of the Interpretation Act 1978 (which relate to the effect of repeals).

Consequential amendments

100

Schedule 14 to this Act shall have effect.

Repeals and revocations

101

• (1) The enactments specified in Part I of Schedule 15 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

• (2) The instruments specified in Part II of Schedule 15 to this Act are hereby revoked to the extent specified in the third column of that Schedule.

Citation, commencement and extent

102

• (1) This Act may be cited as the Agricultural Holdings Act 1986.

• (2) This Act shall come into force at the end of the period of three months beginning with the day on which it is passed.

• (3) Subject to subsection (4) below, this Act extends to England and Wales only.

• (4) Subject to subsection (5) below and to paragraph 26(6) of Schedule 14 to this Act, the amendment or repeal by this Act of an enactment which extends to Scotland or Northern Ireland shall also extend there.

• (5) Subsection (4) above does not apply to the amendment or repeal by this Act of section 9 of the Hill Farming Act 1946, section 48(4) of the Agriculture Act 1967 or an enactment contained in the Agriculture (Miscellaneous Provisions) Act 1968.

SCHEDULE 1

1

The names of the parties.

2

Particulars of the holding with sufficient description, by reference to a map or plan, of the fields and other parcels of land comprised in the holding to identify its extent.

3

The term or terms for which the holding or different parts of it is or are agreed to be let.

4

The rent reserved and the dates on which it is payable.

5

The incidence of the liability for rates (including drainage rates).

6

A covenant by the tenant in the event of the destruction by fire of harvested crops grown on the holding for consumption on it to return to the holding the full equivalent manurial value of the crops destroyed, in so far as the return of that value is required for the fulfilment of his responsibilities to farm in accordance with the rules of good husbandry.

7

A covenant by the tenant (except where the interest of the tenant is held for the purposes of a government department or where the tenant has made provision approved by the Minister in lieu of such insurance) to insure against damage by fire all dead stock on the holding and all harvested crops grown on the holding for consumption on it.

8

A power for the landlord to re-enter on the holding in the event of the tenant not performing his obligations under the agreement.

9

A covenant by the tenant not to assign, sub-let or part with possession of the holding or any part of it without the landlord’s consent in writing.

SCHEDULE 2

Amount of rent

1

• (1) For the purposes of section 12 of this Act, the rent properly payable in respect of a holding shall be the rent at which the holding might reasonably be expected to be let by a prudent and willing landlord to a prudent and willing tenant, taking into account (subject to sub-paragraph (3) and paragraphs 2 and 3 below) all relevant factors, including (in every case) the terms of the tenancy (including those relating to rent), the character and situation of the holding (including the locality in which it is situated), the productive capacity of the holding and its related earning capacity, and the current level of rents for comparable lettings, as determined in accordance with sub-paragraph (3) below.

• (2) In sub-paragraph (1) above, in relation to the holding—

• (a) “productive capacity” means the productive capacity of the holding (taking into account fixed equipment and any other available facilities on the holding) on the assumption that it is in the occupation of a competent tenant practising a system of farming suitable to the holding, and

• (b) “related earning capacity” means the extent to which, in the light of that productive capacity, a competent tenant practising such a system of farming could reasonably be expected to profit from farming the holding.

• (3) In determining for the purposes of that sub-paragraph the current level of rents for comparable lettings, the arbitrator or (as the case may be) the third party shall take into account any available evidence with respect to the rents (whether fixed by agreement between the parties or by arbitration or third party determination under this Act) which are, or (in view of rents currently being tendered) are likely to become, payable in respect of tenancies of comparable agricultural holdings on terms (other than terms fixing the rent payable) similar to those of the tenancy under consideration, but shall disregard—

• (a) any element of the rents in question which is due to an appreciable scarcity of comparable holdings available for letting on such terms compared with the number of persons seeking to become tenants of such holdings on such terms,

• (b) any element of those rents which is due to the fact that the tenant of, or a person tendering for, any comparable holding is in occupation of other land in the vicinity of that holding that may conveniently be occupied together with that holding, and

• (c) any effect on those rents which is due to any allowances or reductions made in consideration of the charging of premiums.

2

• (1) On a reference under section 12 of this Act, the arbitrator or (as the case may be) the third party shall disregard any increase in the rental value of the holding which is due to—

• (a) tenant’s improvements or fixed equipment other than improvements executed or equipment provided under an obligation imposed on the tenant by the terms of his contract of tenancy, and

• (b) landlord’s improvements, in so far as the landlord has received or will receive grants out of money provided by Parliament or local government funds in respect of the execution of those improvements.

• (2) In this paragraph—

• (a) “tenant’s improvements” means any improvements which have been executed on the holding, in so far as they were executed wholly or partly at the expense of the tenant (whether or not that expense has been or will be reimbursed by a grant out of money provided by Parliament or local government funds) without any equivalent allowance or benefit made or given by the landlord in consideration of their execution,

• (b) “tenant’s fixed equipment” means fixed equipment provided by the tenant, and

• (c) “landlord’s improvements” means improvements executed on the holding by the landlord.

• (3) Where the tenant has held a previous tenancy of the holding, then—

• (a) in the definition of “tenant’s improvements” in sub-paragraph (2)(a) above, the reference to any such improvements as are there mentioned shall extend to improvements executed during that tenancy, and

• (b) in the definition of “tenant’s fixed equipment” in sub-paragraph (2)(b), the reference to such equipment as is there mentioned shall extend to equipment provided during that tenancy,

excluding, however, any improvement or fixed equipment so executed or provided in respect of which the tenant received any compensation on the termination of that (or any other) tenancy.

• (4) For the purposes of sub-paragraph (2)(a) above, the continuous adoption by the tenant of a system of farming more beneficial to the holding—

• (a) than the system of farming required by the contract of tenancy, or

• (b) in so far as no system is so required, than the system of farming normally practised on comparable agricultural holdings,

shall be treated as an improvement executed at his expense.

3

On a reference under section 12 of this Act the arbitrator or (as the case may be) the third party —

• (a) shall disregard any effect on the rent of the fact that the tenant who is a party to the arbitration or third party determination is in occupation of the holding, ...

• (aa) in a case where the tenant is, under an agreement in writing with the landlord, required to make payments in respect of improvements to the holding that are or are to be wholly or partly financed by the landlord, shall disregard any effect on the rent of—

• (i) the fact that the tenant is required to make such payments, and

• (ii) any benefit to the tenant arising from the improvements before the date on which the last of those payments falls to be made, and

• (b) shall not fix the rent at a lower amount by reason of any dilapidation or deterioration of, or damage to, buildings or land caused or permitted by the tenant.

Frequency of arbitrations under section 12

4

• (1) Subject to the following provisions of this Schedule, a notice under section 12(1) of this Act shall not be effective for the purposes of section 12 of this Act if the next termination date following the date of the notice falls earlier than the end of three years from any of the following dates, that is to say—

• (a) the commencement of the tenancy, or

• (b) the date as from which there took effect a previous increase or reduction of rent (whether made under that section or otherwise), or

• (c) the date as from which there took effect a previous direction of an arbitrator or third party under that section that the rent should continue unchanged.

• (2) The following shall be disregarded for the purposes of sub-paragraph (1)(b) above—

• (a) an increase of rent under section 6(3) or 8(4) of this Act;

• (b) an increase of rent under subsection (1) of section 13 of this Act or such an increase as is referred to in subsection (3) of that section, or any reduction of rent agreed between the landlord and the tenant of the holding in consequence of any change in the fixed equipment provided on the holding by the landlord;

• (c) a reduction of rent under section 33 of this Act;

• (d) an increase or reduction of rent arising from—

• (i) the exercise of an option to tax under Schedule 10 to the Value Added Tax Act 1994,

• (ii) the revocation of such an option, or

• (iii) a change in the rate of value added tax applicable to grants of interests in or rights over land in respect of which such an option has effect.

5

• (1) This paragraph applies in any case where a tenancy of an agricultural holding (“the new holding”) commences under a contract of tenancy between—

• (a) a person who immediately before the date of the commencement of the tenancy was entitled to a severed part of the reversionary estate in an agricultural holding (“the original holding”) in which the new holding was then comprised, and

• (b) the person who immediately before that date was the tenant of the original holding,

and where the rent payable in respect of the new holding at the commencement of the tenancy of that holding represents merely the appropriate portion of the rent payable in respect of the original holding immediately before the commencement of that tenancy.

• (2) In any case to which this paragraph applies—

• (a) paragraph (a) of sub-paragraph (1) of paragraph 4 above shall be read as referring to the commencement of the tenancy of the original holding, and

• (b) references to rent in paragraphs (b) and (c) of that sub-paragraph shall be read as references to the rent payable in respect of the original holding,

until the first occasion following the commencement of the tenancy of the new holding on which any such increase or reduction of, or direction with respect to, the rent of the new holding as is mentioned in paragraph (b) or (c) takes effect.

6

Where under an agreement between the landlord and the tenant of the holding (not being an agreement expressed to take effect as a new contract of tenancy between the parties) provision is made for adjustment of the boundaries of the holding or for any other variation of the terms of the tenancy, exclusive of those relating to rent, then, unless the agreement otherwise provides—

• (a) that provision shall for the purposes of sub-paragraph (1) of paragraph 4 above be treated as not operating to terminate the tenancy, and accordingly as not resulting in the commencement of a new contract of tenancy between the parties, and

• (b) any increase or reduction of rent solely attributable to any such adjustment or variation as aforesaid shall be disregarded for the purposes of paragraph (b) of that sub-paragraph.

SCHEDULE 3

Part I — The Cases

CASE A

The holding is let as a smallholding by a smallholdings authority or the Minister in pursuance of Part III of the Agriculture Act 1970 and was so let on or after 12th September 1984, and

and it is stated in the notice to quit that it is given by reason of the said matter.

CASE B

The notice to quit is given on the ground that the land is required for a use, other than for agriculture—

and that fact is stated in the notice.

CASE C

Not more than six months before the giving of the notice to quit, the Tribunal granted a certificate under paragraph 9 of Part II of this Schedule that the tenant of the holding was not fulfilling his responsibilities to farm in accordance with the rules of good husbandry, and that fact is stated in the notice.

CASE D

At the date of the giving of the notice to quit the tenant had failed to comply with a notice in writing served on him by the landlord, being either—

and it is stated in the notice to quit that it is given by reason of the said matter.

CASE E

At the date of the giving of the notice to quit the interest of the landlord in the agricultural holding had been materially prejudiced by the commission by the tenant of a breach, which was not capable of being remedied, of any term or condition of the tenancy that was not inconsistent with the tenant's responsibilities to farm in accordance with the rules of good husbandry, and it is stated in the notice that it is given by reason of the said matter.

CASE F

At the date of the giving of the notice to quit the tenant was a person who had become insolvent, and it is stated in the notice that it is given by reason of the said matter.

CASE G

The notice to quit is given—

and it is stated in the notice to quit that it is given by reason of that person's death.

CASE H

The notice to quit is given by the Minister and—

Part II — Supplementary Provisions Applicable to Cases A, B, C, D, E and G

Provisions applicable to Case A

1

Paragraphs 2 to 7 below have effect for determining whether, for the purposes of paragraph (b) of Case A, suitable alternative accommodation is or will be available for the tenant.

2

For the purposes of paragraph (b) of Case A, a certificate of the housing authority for the district in which the living accommodation in question is situated, certifying that the authority will provide suitable alternative accommodation for the tenant by a date specified in the certificate, shall be conclusive evidence that suitable alternative accommodation will be available for him by that date.

3

Where no such certificate as is mentioned in paragraph 2 above has been issued, accommodation shall be deemed to be suitable for the purposes of paragraph (b) of Case A if it consists of either—

• (a) premises which are to be let as a separate dwelling such that they will then be let on a protected tenancy (within the meaning of the Rent Act 1977), or

• (b) premises to be let as a separate dwelling on terms which will afford to the tenant security of tenure reasonably equivalent to the security afforded by Part VII of that Act in the case of a protected tenancy, or

• (c) premises which are to be let as a separate dwelling such that they will then be let on an assured tenancy which is not an assured shorthold tenancy (construing those terms in accordance with Part I of the Housing Act 1988), or

• (d) premises to be let as a separate dwelling on terms which will afford to the tenant security of tenure reasonably equivalent to the security afforded by Chapter I of Part I of that Act in the case of an assured tenancy which is not an assured shorthold tenancy.

and the accommodation fulfils the conditions in paragraph 4 below.

• (2) Any reference in sub-paragraph (1) above to an assured tenancy does not include a reference to a tenancy in respect of which possession might be recovered on any of Grounds 1 to 5 in Schedule 2 to the Housing Act 1988.

4

• (1) The accommodation must be reasonably suitable to the needs of the tenant’s family as regards proximity to place of work and either—

• (a) similar as regards rental and extent to the accommodation afforded by dwelling-houses provided in the neighbourhood by any housing authority for persons whose needs as regards extent are similar to those of the tenant and his family, or

• (b) reasonably suitable to the means of the tenant and to the needs of the tenant and his family as regards extent and character.

• (2) For the purposes of sub-paragraph (1)(a) above, a certificate of a housing authority stating—

• (a) the extent of the accommodation afforded by dwelling-houses provided by the authority to meet the needs of tenants with families of such number as may be specified in the certificate, and

• (b) the amount of the rent charged by the authority for dwelling-houses affording accommodation of that extent,

shall be conclusive evidence of the facts so stated.

• (3) If any furniture was provided by the landlord for use under the tenancy in question, furniture must be provided for use in the alternative accommodation which is either—

• (a) similar to that so provided, or

• (b) reasonably suitable to the needs of the tenant and his family.

5

Accommodation shall not be deemed to be suitable to the needs of the tenant and his family if the result of their occupation of the accommodation would be that it would be an overcrowded dwelling-house for the purposes of Part X of the Housing Act 1985.

6

Any document purporting—

• (a) to be a certificate of a housing authority named in it issued for the purposes of this Schedule, and

• (b) to be signed by the proper officer of the authority,

shall be received in evidence and, unless the contrary is shown, shall be deemed to be such a certificate without further proof.

7

• (1) In paragraphs 2, 4 and 6 above “housing authority”, and “district” in relation to such an authority, mean a local housing authority and their district within the meaning of the Housing Act 1985.

• (2) For the purposes of paragraphs 4 and 5 a dwelling-house may be a house or part of a house.

Provisions applicable to Case B

8

• (1) For the purposes of Case B no account shall be taken of any permission granted as mentioned in paragraph (a) of that Case if the permission—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) relates to the working of coal by opencast operations, and

• (c) was granted subject to a restoration condition and to an aftercare condition in which the use specified is use for agriculture or use for forestry.

• (2) In this paragraph “restoration condition” and “aftercare condition” have the meaning given by section 336(1) of the Town and Country Planning Act 1990.

Provisions applicable to Case C

9

• (1) For the purposes of Case C the landlord of an agricultural holding may apply to the Tribunal for a certificate that the tenant is not fulfilling his responsibilities to farm in accordance with the rules of good husbandry; and the Tribunal, if satisfied that the tenant is not fulfilling his said responsibilities, shall grant such a certificate.

• (2) In determining whether to grant a certificate under this paragraph the Tribunal shall disregard any practice adopted by the tenant in pursuance of any provision of the contract of tenancy, or of any other agreement with the landlord, which indicates (in whatever terms) that its object is the furtherance of one or more of the following purposes, namely—

• (a) the conservation of flora or fauna or of geological or physiographical features of special interest;

• (b) the protection of buildings or other objects of archaeological, architectural or historic interest;

• (c) the conservation or enhancement of the natural beauty or amenity of the countryside or the promotion of its enjoyment by the public.

• (3) In determining whether to grant a certificate under this paragraph, the tribunal shall disregard any practice adopted by the tenant in compliance with any obligation accepted by or imposed on the tenant under section 94 or 95 of the Water Resources Act 1991

Provisions applicable to Case D

10

• (1) For the purposes of Case D—

• (a) a notice such as that mentioned in paragraph (a) or (b) of that Case must be in the prescribed form,

• (b) where such a notice in the prescribed form requires the doing of any work of repair, maintenance or replacement, any further notice requiring the doing of any such work which is served on the tenant less than twelve months after the earlier notice shall be disregarded unless the earlier notice was withdrawn with his agreement in writing,

• (c) a period of less than six months shall not be treated as a reasonable period within which to do any such work, and

• (d) any provision such as is mentioned in paragraph 9(2) above shall (if it would not otherwise be so regarded) be regarded as a term or condition of the tenancy which is not inconsistent with the tenant’s responsibilities to farm in accordance with the rules of good husbandry.

• (2) Different forms may be prescribed for the purpose of paragraph (b) of Case D in relation to different circumstances.

• (3) For the purposes of that Case compliance with any obligation accepted by or imposed on the tenant under section 94 or 95 of the Water Resources Act 1991 shall not be capable of constituting a breach by the tenant of the terms or conditions of his tenancy.

Provisions applicable to Case E

11

• (1) Where—

• (a) the landlord is a smallholdings authority, or

• (b) the landlord is the Minister and the holding is on land held by him for the purposes of smallholdings,

then, in considering whether the interest of the landlord has been materially prejudiced as mentioned in Case E, regard shall be had to the effect of the breach in question not only on the holding itself but also on the carrying out of the arrangements made by the smallholdings authority or the Minister (as the case may be) for the letting and conduct of smallholdings.

• (2) For the purposes of Case E any provision such as is mentioned in paragraph 9(2) above shall (if it would not otherwise be so regarded) be regarded as a term or condition of the tenancy which is not inconsistent with the tenant’s responsibilities to farm in accordance with the rules of good husbandry.

• (3) For the purposes of that Case compliance with any obligation accepted by or imposed on the tenant under section 94 or 95 of the Water Resources Act 1991shall not be capable of constituting a breach by the tenant of the terms or conditions of his tenancy.

Provisions applicable to Case G

12

For the purposes of Case G—

• (a) “tenant” does not include an executor, administrator, trustee in bankruptcy or other person deriving title from a tenant by operation of law, and

• (b) the reference to the date of any relevant notice shall be construed as a reference—

• (i) to the date on which a notice in writing was served on the landlord by or on behalf of an executor or administrator of the tenant’s estate informing the landlord of the tenant’s death or the date on which the landlord was given notice by virtue of section 40(5) of this Act of any application with respect to the holding under section 39 or 41, or

• (ii) where both of those events occur, to the date of whichever of them occurs first.

SCHEDULE 4

1

Requiring any question arising under the provisions of section 26(2) of, and Schedule 3 to, this Act to be determined by arbitration under this Act.

2