End-of-Term compensation for ‘old’ improvements under the Agricultural Holdings Act 1986
End-of-Term compensation for ‘old’ improvements under the Agricultural Holdings Act 1986

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

  • End-of-Term compensation for ‘old’ improvements under the Agricultural Holdings Act 1986
  • Eligibility
  • Qualifying improvements
  • Amount of compensation
  • Change of tenancy or tenant

Eligibility

On terminating their tenancy and quitting the holding, a tenant has a statutory right to claim compensation from his landlord for specified improvements begun on the holding before 1 March 1948. These improvements are known as ‘old’ improvements, to distinguish them from ‘relevant’ improvements, which are those made after that date.

Compensation is not available where:

  1. the tenancy agreement was made before 1 January 1921 and the tenant was required to carry out that improvement under its terms, or

  2. the holding was not, or did not fall to be treated, as a holding within the meaning of the Agricultural Holdings Act 1923 (AHA 1923) as originally enacted

Other than where the tenancy agreement pre-dates 1 January 1921, the tenant is eligible for compensation whether or not they were under an obligation to carry out the improvement under the tenancy agreement.

Compensation is not payable for a 'qualifying improvement' unless the landlord’s written consent was obtained to the improvement before work began. That consent may be unconditional or conditional on compensation o