Agricultural tenancies—rent review
Agricultural tenancies—rent review

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Agricultural tenancies—rent review
  • Agricultural Holdings Act 1986
  • Agricultural Tenancies Act 1995

Agricultural Holdings Act 1986

Under the Agricultural Holdings Act 1986 (AHA 1986), either the landlord or the tenant may ‘demand’ that the ‘rent properly payable’ in respect of the holding ‘from the next termination date’ should be determined by arbitration. The ‘next termination date’ will be the earliest date on which the tenancy could have been determined by a notice to quit given at the date of demand. This is the first anniversary of the term date which is at least 12 months after the date of the rent review demand.

This formulation means that the statutory machinery cannot be used to secure a rent review in the case of a fixed term tenancy, as only yearly tenancies (including fixed term tenancies which have been continued under AHA 1986, s 2 after the fixed term has expired) are determinable by notice to quit. This has prompted considerable debate as to whether it is permissible for the landlord and tenant to vary the arbitration procedure and/or valuation formula provided by the AHA 1986, or indeed to contract out of them altogether. The AHA 1986 is silent and the point has never arisen for decision. Many commentators consider that there is no public policy reason why the parties to a fixed term tenancy should not be able to incorporate their own rent