Agricultural Tenancies Act 1995

(25A) (1) The provisions of this section shall have effect where— (a) any part of the land comprised in a compulsory rights order is held, immediately before the date of entry, under a farm business tenancy; (b) there have been provided in relation to the land which is both so comprised and so held (“the tenant”s land’) tenant’s improvements in respect of which, immediately before that date, the tenant had a prospective right to compensation under section 16 of the Act of 1995 on quitting the holding on the termination of the tenancy; (c) at the end of the period of occupation, the tenant’s land has lost the benefit of any such improvement; and (d) immediately after the end of that period, the tenant’s land is comprised in the same tenancy as immediately before the date of entry, or is comprised in a subsequent farm business tenancy at the end of which the tenant is not deprived, by virtue of section 23(3) of that Act, of his right to compensation under section 16 of that Act in respect of any tenant’s improvement provided during the earlier tenancy in relation to the tenant’s land. (2) For the purposes of subsection (1) of this section, subsection (2) of section 22 of the Act of 1995 (which requires notice to be given of the intention to make a claim) shall be disregarded. (3) Subject to subsection (4) of this section, Part III of the Act of 1995 shall apply as if— (a) the tenant’s land were in the state in which it was immediately before the date of entry, and (b) the tenancy under which that land is held at the end of the period of occupation had terminated immediately after the end of that period and the tenant had then quitted the holding. (4) Where the tenant’s land has lost the benefit of some tenant’s improvements but has not lost the benefit of all of them, Part III of the Act of 1995 shall apply as mentioned in subsection (3) above, but as if the improvements of which the tenant’s land has not lost the benefit had not been tenant’s improvements. (5) For the purposes of subsections (1) and (4) of this section, the tenant’s land shall be taken to have lost the benefit of a tenant’s improvement if the benefit of that improvement has been lost (wholly or in part) without being replaced by another improvement of comparable benefit to the land. (6) In this section “holding”, in relation to a farm business tenancy, “tenant’s improvement”, “termination”, in relation to a tenancy, and references to the provision of a tenant’s improvement have the same meaning as in the Act of 1995. (7) This section does not extend to Scotland.

17

• (1) Section 26 of that Act (compensation for short-term improvements and related matters) shall be amended as follows.

• (2) In subsection (1), after “agricultural land” there shall be inserted “ and was not comprised in a farm business tenancy ”.

• (3) In subsection (6), after “Scotland” there shall be inserted—

(za) in subsection (1) of this section, the words “and was not comprised in a farm business tenancy” shall be omitted;

.

18

• (1) Section 28 of that Act (special provision as to market gardens) shall be amended as follows.

• (2) In subsection (1), after “market garden” there shall be inserted “ and was not comprised in a farm business tenancy. ”

• (3) In subsection (6), after “Scotland” there shall be inserted “ in subsection (1) of this section, the words “and was not comprised in a farm business tenancy” shall be omitted; and ”.

19

In section 51 of that Act (interpretation) in subsection (1)—

• (a) after the definition of “the Act of 1986” there shall be inserted—

“the Act of 1995” means the Agricultural Tenancies Act 1995;

and

• (b) after the definition of “emergency powers” there shall be inserted—

“farm business tenancy” has the same meaning as in the Act of 1995;

.

20

• (1) Schedule 7 to that Act (adjustments between landlords and tenants and in respect of mortgages and mining leases and orders) shall be amended as follows.

• (2) After paragraph 1, there shall be inserted—

(1A) (1) The provisions of this paragraph shall have effect where— (a) paragraphs (a) and (b) of subsection (1) of section 25A of this Act apply, and (b) the farm business tenancy at the end of which the tenant could have claimed compensation for tenant’s improvements terminates on or after the date of entry, but before the end of the period of occupation, without being succeeded by another such subsequent tenancy. (2) In the circumstances specified in sub-paragraph (1) of this paragraph, the provisions of Part III of the Act of 1995— (a) shall apply, in relation to the tenancy mentioned in that sub-paragraph, as if, at the termination of that tenancy, the land in question were in the state in which it was immediately before the date of entry, and (b) if the tenant under that tenancy quitted the holding before the termination of his tenancy, shall so apply as if he had quitted the holding on the termination of his tenancy. (3) In sub-paragraph (2) of this paragraph, “holding”, in relation to a farm business tenancy, and “termination”, in relation to a tenancy, have the same meaning as in the Act of 1995.

• (3) In paragraph 2, in sub-paragraph (1), after “agricultural holding” there shall be inserted “ held under a tenancy in relation to which the Act of 1986 applies ”.

• (4) After that paragraph there shall be inserted—

(2A) (1) The provisions of this paragraph shall have effect where land comprised in a farm business tenancy is comprised in a compulsory rights order (whether any other land is comprised in the holding, or comprised in the order, or not), and— (a) before the date of entry there had been provided in relation to the land in question tenant’s improvements (in this paragraph referred to as “the former tenant”s improvements’) in respect of which, immediately before that date, the tenant had a prospective right to compensation under section 16 of the Act of 1995 on quitting the holding on the termination of the tenancy, and (b) at the end of the period of occupation the circumstances are such that Part III of that Act would have applied as mentioned in subsections (3) and (4) of section 25A of this Act, but for the fact that the benefit of the former tenant’s improvements has been replaced, on the restoration of the land, by other improvements (in this paragraph referred to as “the new improvements”) of comparable benefit to the land. (2) In the circumstances specified in sub-paragraph (1) of this paragraph, Part III of the Act of 1995 shall have effect in relation to the new improvements as if those improvements were tenant’s improvements. (3) Subsections (2) and (6) of section 25A of this Act shall apply for the purposes of this paragraph as they apply for the purposes of that section.

• (5) After paragraph 3 there shall be inserted—

(3A) Where by virtue of section 25A of this Act a tenant is entitled to compensation for tenant’s improvements as mentioned in that section and— (a) after the end of the period of occupation expenses are incurred in replacing the benefit of the tenant’s improvements by other improvements of comparable benefit to the land, and (b) the person incurring those expenses (whether he is the landlord or not) is entitled to compensation in respect of those expenses under section 22 of this Act, section 13 of the Act of 1995 shall apply as if the works in respect of which those expenses are incurred were not tenant’s improvements, if apart from this paragraph they would constitute such improvements.

• (6) At the end of paragraph 4, there shall be added—

(7) In this paragraph “agricultural holding” does not include an agricultural holding held under a farm business tenancy.

• (7) After that paragraph there shall be inserted—

(4A) (1) The provisions of this paragraph shall apply where— (a) immediately before the operative date of a compulsory rights order, any of the land comprised in the order is subject to a farm business tenancy, and (b) that tenancy continues until after the end of the period of occupation. (2) The landlord or tenant under the tenancy may, by notice in writing served on his tenant or landlord, demand a reference to arbitration of the question whether any of the terms and conditions of the tenancy (including any term or condition relating to rent) should be varied in consequence of any change in the state of the land resulting from the occupation or use of the land in the exercise of rights conferred by the order; and subsection (3) of section 28 of the Act of 1995 shall apply in relation to a notice under this sub-paragraph as it applies in relation to a notice under subsection (2) of that section. (3) On a reference by virtue of this paragraph, the arbitrator shall determine what variations (if any) should be made in the terms and conditions of the tenancy, and the date (not being earlier than the end of the period of occupation) from which any such variations are to take effect or to be treated as having taken effect; and as from that date the tenancy shall have effect, or, as the case may be, shall be treated as having had effect, subject to any variations determined by the arbitrator under this paragraph. (4) The provisions of this paragraph shall not affect any right of the landlord or the tenant, or the jurisdiction of the arbitrator, under Part II of the Act of 1995; but where— (a) there is a reference by virtue of this paragraph and a reference under Part II of that Act in respect of the same tenancy, and (b) it appears to the arbitrator that the reference under Part II of that Act relates wholly or mainly to the consequences of the occupation or use of the land in the exercise of rights conferred by the order, he may direct that proceedings on the two references shall be taken concurrently.

• (8) In paragraph 5(1), after “agricultural holding” there shall be inserted “held under a tenancy in relation to which the Act of 1986 applies”.

• (9) In paragraph 6—

• (a) in sub-paragraph (1), for “an agricultural holding” there shall be substituted

— (a) an agricultural holding held under a tenancy in relation to which the Act of 1986 applies, or (b) a holding under a farm business tenancy,

; and

• (b) after sub-paragraph (2) there shall be added—

(2A) In sub-paragraph (1) of this paragraph, “holding”, in relation to a farm business tenancy, has the same meaning as in the Act of 1995.

• (10) In paragraph 7—

• (a) after “The provisions of” there shall be inserted “ sub-paragraphs (1) to (6) of ”;

• (b) for “that paragraph” there shall be substituted “ those sub-paragraphs ”; and

• (c) after “subject to a mortgage” there shall be inserted “ but not comprised in a farm business tenancy ”.

• (11) After that paragraph there shall be inserted—

(7A) The provisions of paragraph 4A of this Schedule shall apply in relation to mortgages of land comprised in farm business tenancies as they apply in relation to such tenancies, as if any reference in that paragraph to such a tenancy were a reference to such a mortgage, and any reference to a landlord or to a tenant were a reference to a mortgagee or to a mortgagor, as the case may be.

• (12) In paragraph 12(1)(a), for the words from “did” to “holding” there shall be substituted “ was not comprised in a tenancy in relation to which the Act of 1986 applies or in a farm business tenancy ”.

• (13) In paragraph 13, after “or to a tenancy” there shall be inserted “ (other than a reference to a tenancy in relation to which the Act of 1986 applies or a farm business tenancy) ”.

• (14) In paragraph 25—

• (a) in sub-paragraph (a), at the beginning there shall be inserted “ subject to sub-paragraphs (ba), (bc), (bd)(i) and (be) of this paragraph, ”;

• (b) after sub-paragraph (b), there shall be inserted—

(ba) in sub-paragraph (1) of paragraph 2, the words “held under a tenancy in relation to which the Act of 1986 applies” shall be omitted; (bb) sub-paragraph (7) of paragraph 4 shall be omitted; (bc) in sub-paragraph (1) of paragraph 5, the words “held under a tenancy in relation to which the Act of 1986 applies” shall be omitted; (bd) in paragraph (6)— (i) for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted the words “an agricultural holding”; and (ii) sub-paragraph (2A) shall be omitted; (be) in sub-paragraph (1)(a) of paragraph 12, for the words “was not comprised in a tenancy in relation to which the Act of 1986 applies or in a farm business tenancy” there shall be substituted the words “did not constitute or form part of an agricultural holding”;

and

• (c) in sub-paragraph (c), for “7” there shall be substituted “ 1A, 2A, 3A, 4A, 7, 7A ”.

The Agriculture (Miscellaneous Provisions) Act 1963 (c. 11)

21

• (1) Section 22 of the Agriculture (Miscellaneous Provisions) Act 1963 (allowances to persons displaced from agricultural land) shall be amended as follows.

• (2) In subsection (1), for paragraph (a) there shall be substituted—

(a) the land— (i) is used for the purposes of agriculture (within the meaning of the Agricultural Tenancies Act 1995) and is so used by way of a trade or business, or (ii) is not so used but is comprised in a farm business tenancy (within the meaning of the Agricultural Tenancies Act 1995) and used for the purposes of a trade or business,

.

• (3) In subsection (6)(c), for “the Agricultural Holdings Act 1986” there shall be substituted “ , the Agricultural Tenancies Act 1995 ”.

The Leasehold Reform Act 1967 (c. 88)

22

In section 1(3) of the Leasehold Reform Act 1967 (tenants entitled to enfranchisement or extension), for paragraph (b) there shall be substituted—

(b) it is comprised in— (i) an agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, or (ii) the holding held under a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

The Agriculture (Miscellaneous Provisions) Act 1968 (c. 34)

23

In section 12 of the Agriculture (Miscellaneous Provisions) Act 1968 (additional payments in consequence of compulsory acquisition etc of agricultural holdings), after subsection (1) there shall be inserted—

(1A) No sum shall be payable by virtue of subsection (1) of this section in respect of any land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

The Land Compensation Act 1973 (c. 26)

24

In section 48 of the Land Compensation Act 1973 (compensation in respect of agricultural holdings) at the beginning of subsection (1) there shall be inserted “Subject to subsection (1A) below” and after subsection (1) there shall be inserted—

(1A) This section does not have effect where the tenancy of the agricultural holding is a tenancy to which, by virtue of section 4 of the Agricultural Tenancies Act 1995, the Agricultural Holdings Act 1986 does not apply.

The Rent (Agriculture) Act 1976 (c. 80)

25

• (1) Section 9 of the Rent (Agriculture) Act 1976 (effect of determination of superior tenancy, etc) shall be amended as follows.

• (2) In subsection (3), after “the Agricultural Holdings Act 1986” there shall be inserted “ held under a tenancy in relation to which that Act applies and land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”

• (3) In subsection (4), for the words from “or” at the end of paragraph (b) onwards there shall be substituted—

(c) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies; or (d) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

26

In Schedule 2 to that Act (meaning of “relevant licence” and “relevant tenancy”), in paragraph 2 for the words from “and a tenancy” to the end there shall be substituted “ , a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies, and a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”

The Rent Act 1977 (c. 42)

27

For section 10 of the Rent Act 1977 there shall be substituted—

(10) (1) A tenancy is not a protected tenancy if— (a) the dwelling-house is comprised in an agricultural holding and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding, or (b) the dwelling-house is comprised in the holding held under a farm business tenancy and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the management of the holding. (2) In subsection (1) above— - “agricultural holding” means any agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, and - “farm business tenancy”, and “holding” in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995.

28

• (1) Section 137 of that Act (effect on sub-tenancy of determination of superior tenancy) shall be amended as follows.

• (2) In subsection (3), after “the Agricultural Holdings Act 1986” there shall be inserted “ held under a tenancy to which that Act applies and land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”

• (3) In subsection (4), in paragraph (c), for the words from “applies” onwards there shall be substituted

applies— (i) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies, or (ii) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

The Protection from Eviction Act 1977 (c. 43)

29

In section 8(1) of the Protection from Eviction Act 1977 (interpretation)—

• (a) in paragraph (d), after “Agricultural Holdings Act 1986” there shall be inserted “ which is a tenancy in relation to which that Act applies ”, and

• (b) at the end there shall be added—

(g) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.

The Housing Act 1985 (c. 68)

30

In Schedule 1 to the Housing Act 1985 (tenancies which are not secure tenancies), for paragraph 8 there shall be substituted—

(8) (1) A tenancy is not a secure tenancy if— (a) the dwelling-house is comprised in an agricultural holding and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding, or (b) the dwelling-house is comprised in the holding held under a farm business tenancy and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the management of the holding. (2) In sub-paragraph (1) above— - “agricultural holding” means any agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, and - “farm business tenancy”, and “holding” in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995.

The Landlord and Tenant Act 1985 (c. 70)

31

In section 14(3) of the Landlord and Tenant Act 1985 (leases to which section 11 does not apply), at the end there shall be added “ and in relation to which that Act applies or to a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”

The Agricultural Holdings Act 1986 (c. 5)

32

In Schedule 6 to the Agricultural Holdings Act 1986 (eligibility to apply for a new tenancy under Part IV of that Act), in paragraph 6 (occupation to be disregarded for purposes of occupancy condition), in sub-paragraph (1) after paragraph (d) there shall be inserted—

(dd) under a farm business tenancy, within the meaning of the Agricultural Tenancies Act 1995, for less than five years (including a farm business tenancy which is a periodic tenancy),

.

The Housing Act 1988 (c. 50)

33

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34

In Schedule 1 to that Act (tenancies which cannot be assured tenancies), for paragraph 7 there shall be substituted—

(7) (1) A tenancy under which the dwelling-house— (a) is comprised in an agricultural holding, and (b) is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding. (2) A tenancy under which the dwelling-house— (a) is comprised in the holding held under a farm business tenancy, and (b) is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the management of the holding. (3) In this paragraph— - “agricultural holding” means any agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, and - “farm business tenancy” and “holding”, in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995.

The Town and Country Planning Act 1990 (c. 8)

35

• (1) Section 65 of the Town and Country Planning Act 1990 (notice etc. of applications for planning permissions) shall be amended as follows.

• (2) In subsection (2), for “a tenant of any agricultural holding any part of which is comprised in that land” there shall be substituted “ an agricultural tenant of that land ”.

• (3) In subsection (8), for the definition of “agricultural holding” there shall be substituted—

“agricultural tenant”, in relation to any land, means any person who— (a) is the tenant, under a tenancy in relation to which the Agricultural Holdings Act 1986 applies, of an agricultural holding within the meaning of that Act any part of which is comprised in that land; or (b) is the tenant, under a farm business tenancy (within the meaning of the Agricultural Tenancies Act 1995), of land any part of which is comprised in that land;

.

The Coal Mining Subsidence Act 1991 (c. 45)

36

In section 21 of the Coal Mining Subsidence Act 1991 (property belonging to protected tenants) in subsection (3), after paragraph (a) there shall be inserted—

(aa) a tenant under a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995;

.

37

In Schedule 3 to that Act (property belonging to protected tenants) in paragraph 1(2), after paragraph (b) there shall be inserted—

(bb) section 20 of the Agricultural Tenancies Act 1995;

.

Meaning of “farm business tenancy”.

Tenant’s right to remove fixtures and buildings.

Meaning of “tenant’s improvement”.

Power of limited owners to give consents etc.

Editorial notes

8A

• (1) This section applies to a farm business tenancy where the land comprised in the tenancy is in Wales.

• (2) A tenant may, by notice in writing given to the landlord, refer to arbitration under this Act a request made by the tenant to the landlord where—

• (a) the request falls within subsection (3), and

• (b) no agreement has been reached with the landlord on the request.

• (3) A request falls within this subsection if—

• (a) it is a request for—

• (i) the landlord’s consent to a matter which under the terms of the tenancy requires such consent, or

• (ii) a variation of the terms of the tenancy, and

• (b) it is made for the purposes of—

• (i) enabling the tenant to request or apply for relevant financial support, or

• (ii) complying with a statutory duty applicable to the tenant.

• (4) Subsection (5) applies where the tenant has given notice under subsection (2) but an arbitrator has not been appointed by agreement before the end of the period of two months beginning with the day on which the notice was given.

• (5) The tenant or the landlord may apply to a professional authority for the appointment of an arbitrator by that authority, but once either party has made such an application the other may no longer do so.

• (6) An arbitrator, on a reference made under subsection (2), may—

• (a) determine that the landlord must comply with the request (either in full or in part),

• (b) determine that the landlord may refuse to comply with the request, or

• (c) make any other award or determination permitted by regulations.

• (7) The Welsh Ministers may by regulations make provision—

• (a) about conditions to be met before a reference may be made under subsection (2);

• (b) about the awards or determinations that may be made by an arbitrator, which may include making an order for a variation in the rent payable under the tenancy or for the payment of compensation or costs;

• (c) about the time at which, or the conditions subject to which, an award or determination may be expressed to take effect;

• (d) restricting a tenant’s ability to make subsequent references to arbitration where a reference to arbitration has already been made under subsection (2) in relation to the same tenancy.

• (8) In this section—

• “relevant financial support” means financial support under—section 8 of the Agriculture (Wales) Act 2023 (“the 2023 Act”) (Welsh Ministers’ power to provide support),a scheme of the sort mentioned in section 9(7) of the 2023 Act (meaning of “third party scheme” for purposes of power to provide support),the basic payment scheme, as defined in section 16 of the 2023 Act (power to modify legislation governing the basic payment scheme),legislation relating to the financing, management and monitoring of the common agricultural policy, as defined in section 17 of the 2023 Act (power to modify legislation relating to the common agricultural policy),legislation relating to support for apiculture, as defined in section 18 of the 2023 Act (power to modify legislation relating to support for apiculture),legislation relating to support for rural development, as defined in section 19 of the 2023 Act (support for rural development), orsection 22 of the 2023 Act (powers of Welsh Ministers to give financial assistance in exceptional market conditions);

• “statutory duty” means a duty imposed by or under—an Act of Parliament;an Act of Senedd Cymru or an Assembly Measure;retained direct EU legislation.

36A

• (1) A power to make regulations under this Act is exercisable by statutory instrument.

• (2) The Welsh Ministers’ power to make regulations under section 8A(7) includes power to make different provision for different purposes.

• (3) A statutory instrument containing regulations made under section 8A(7) is subject to annulment in pursuance of a resolution of Senedd Cymru.