End-of-Term compensation for 'relevant' improvements under the Agricultural Holdings Act 1986
End-of-Term compensation for 'relevant' 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 'relevant' improvements under the Agricultural Holdings Act 1986
  • Qualifying improvements
  • Landlord’s consent for long-term improvements
  • FTT/ALT approval
  • Amount of compensation

Qualifying improvements

On quitting an agricultural holding to which the Agricultural Holdings Act 1948 applies, the tenant is entitled under the Agricultural Holdings Act 1986 (AHA 1986) to claim compensation from the landlord for any qualifying ‘relevant’ improvement begun by the tenant on or after 1 March 1948, provided that the tenant was not required to make the improvement under the terms of a tenancy entered into before 1 January 1921. The current tenant can, in certain circumstances, claim compensation for qualifying improvements carried out by a previous tenant.

There are two lists of qualifying improvements (set out in AHA 1986, Schedule 7 and Schedule 8, Part I (as amended)). These lists split the qualifying relevant improvements into ‘long-term’ and short-term’ improvements. Long-term improvements are further sub-divided into:

  1. improvements for which compensation is only payable if the landlord has consented to the improvement (AHA 1986, Sch 7, Part I), or

  2. improvements for which compensation is payable either if the landlord has consented or the First-tier Tribunal (Property Chamber) Agricultural Land and Drainage (the FTT) in England or the Agricultural Land Tribunal (the ALT) in Wales has given its approval to the improvement (AHA 1986, Sch 7, Part II)

No consent (or approval) is required as a pre-condition to the right to claim compensation for short-term improvements (AHA 1986, Sch