The Agricultural Landlord and Tenant Code of Practice for England
The Agricultural Landlord and Tenant Code of Practice for England (the Code) came into force on 8 April 2024.
It sets out a framework to foster better relationships and fairer practices within the agricultural industry, focusing on three foundational principals: clarity, communication and collaboration.
Alistair Millar, Partner at Tallents Solicitors notes that while the Code is not legally binding, it seeks to promote mutual understanding and cooperation between landlords and tenants and reduce .
As the agricultural sector evolves, there is a greater emphasis on environmental schemes, natural capital, and sustainability, making the Code increasingly relevant for landlords and tenants alike.
Grant of Tenancy
When offering a tenancy, it is paramount that landlords provide transparent information. Prospective tenants should be furnished with clear details about the farm, including the expectations for its management and any specific qualifications or experience required. Open and honest communication at this stage helps to set the foundation for a productive and harmonious tenancy.
Routine engagement
The Code encourages regular interactions between landlords and tenants throughout the tenancy term. Scheduled meetings to discuss topics such as rent reviews, repairs, improvements, and participation in environmental schemes are highly recommended. This ongoing dialogue helps to address issues promptly and maintain a collaborative relationship, ultimately benefiting both parties.
Dispute resolution
There is structured guidance on managing disputes and ways to resolve them promptly through agreed dispute resolution mechanisms.
Environmental schemes
Environmental schemes offer significant benefits to the agricultural industry, and landlords should support tenants who wish to participate in them. Tenancy agreements should be flexible enough to accommodate such initiatives, and any environmental works proposed by landlords should be subject to sensible and constructive discussions with tenants.
Termination and renewal of the tenancy
The importance of early and clear communication concerning tenancy renewal or termination cannot be overstated. For agreements with succession rights, initiating discussions well in advance can save substantial costs and reduce uncertainty.
Navigating the guidelines
As landlords and tenants integrate the principals of the Code into their business operations and legal frameworks, professional advisers can play a crucial role in ensuring compliance with the Code’s guidelines. Professional advisors and agents are encouraged to make clients aware of the Code and promote compliance with the guidelines.
What to expect
The emphasis is shifting towards a more collaborative approach between landlords and tenants. Even though the Code is non-binding unless incorporated into tenancy agreements, it is likely to be taken seriously by dispute resolvers, including arbitrators, experts, and civil courts. It’s likely that non-compliance with the Code could be viewed unfavourably, resulting in significant cost awards, making adherence to the Code advantageous. While enforceability remains a grey area, the intent is clear: to reset the dynamics within agricultural landlord-tenant relationships.
Alistair notes that the Agricultural Landlord and Tenant Code of Practice for England is a significant step towards improving landlord-tenant relationships in the agricultural sector. By adhering to principles of clarity, communication, and collaboration, both landlords and tenants stand to benefit from more productive and harmonious tenancies.
If you have questions or need assistance with your agricultural tenancy agreements, please contact Tallents Solicitors on 01636 671881 or visit our Agricultural Law page for more information. Our experienced team is ready to help and ensure your compliance with the new Code.
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The legal content of this article is correct at the date of publishing. We recommend you seek legal advice with regards to your personal circumstances before acting.
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