No. 191 Rent Reviews for Farm Business Tenancies

No. 191 Rent Reviews for Farm Business Tenancies

ISBN 978 1 901 434 36 2

Price: £25.00

Foreword

The Agricultural Tenancies Act 1995 is now a well established part of our agricultural tenancy legislation. Alongside papers on the 1986 Act, the CAAV has produced Numbered Publications 173 and 1998 to assist members in preparing Farm Business Tenancies, what is now 166A on the Valuation of Improvements under the 1995 Act and 184 reviewing the 2006 TRIG Reforms as well as material on dilapidations for FBTs in 187. The current apparent upturn in the fortunes of some of the main farming sectors and the associated pressure on the rents of many holdings makes this an opportune time to produce a new publication to assist valuers involved in rent reviews for Farm Business Tenancies.

Many Farm Business Tenancies are short term or, especially after the end of the initial fixed term, of an annual periodic nature, with a notice to terminate available as an alternative to a rent review. Other FBTs are longer term. Either way, a clear understanding of the procedures under the 1995 Act might increase confidence in the longevity of an arrangement to the possible benefit of both sides.

Some will have used the greater freedom of the 1995 Act (enlarged for the TRIG reforms) to agree alternative provisions for either or both the basis and procedure for the review or variation of rents. Care will need to be taken in addressing these individual arrangements.

Jeremy Moody has yet again produced a clear and informative publication that will guide valuers in an important area of their work. Our thanks go to him, the members of the Property Committee and the Valuation, Compensation and Taxation Committee and other leading practitioners who have read the drafts and provided helpful comments – including Peter Horne for his patient comments as the draft sections on arbitration developed.