Changes for 1986 Act Tenancies

Julian Sayers in his capacity as Chairman of the Tenancy Reform Industry Group is pleased to report that in the final days of the last Parliament a number of changes to the Agricultural Holdings Act 1986 were enacted having been promoted by the Group via Defra for some considerable time.

In summary the changes are as follows:

  • The option for landlords and tenants to use third party determination rather than arbitration for many of the differences and disputes which can arise within tenancies under the 1986 Act with effect from 27th May 2015 as for Farm Business Tenancies.
  • The repealing of the prescriptive and outdated regulations dealing with the end of tenancy compensation for short term improvements and tenant right matters with effect from 1st October 2015 following which the parties can negotiate a settlement within the new legal framework.
  • The introduction of new Model Clauses governing the default liabilities for the maintenance, repair, replacement and insurance of fixed equipment on agricultural holdings which had not been updated since 1973 and come into effect from 1st October 2015.

These modernising measurers will hopefully be welcomed by those who let and occupy agricultural holdings within the provisions of the 1986 Act.  Detailed guidance is to be made available by the Central Association of Agricultural Valuers of which the Adkin professional team are all members.