Western Morning News – 18.11.2015 – Vital to keep up with new rules as they affect farms

The month of October saw a number of changes and amendments to regulations within England come into force. 

Any new tenancy of a dwelling which starts after the 1st October in England and Wales which permits a ‘home business’ to be carried out in the house will be exempt from the security of tenure provisions of Part 2 of the Landlord and Tenant Act 1954.  This means that tenants who have established a home business within a dwelling with the consent of the landlord will not be able to claim security of tenure under the 1954 Act.  Most lettings of farms will not fall within these provisions because the main purpose of the letting will not be to provide the tenant with a home.

Under the Deregulation Act 2015 provision is made for third party (Independent Expert) determination of disputes arising under the Agricultural Holdings Act 1986 in certain instances.  These include rent reviews, Model Clauses for repair and maintenance, and end of tenancy claims under Section 83 to name but a few.  This provides a welcome alternative for the average tenant farmer, providing their landlord agrees, as the costs of arbitration can be prohibitive.  The fact that very few arbitrations ever go the full course to a hearing illustrates that the cost of a formal hearing is often disproportionate to the ‘value’ in dispute and therefore an Independent Expert may provide a more suitable alternative.  This regulation came into force on the 1st October 2015 and provides a cost-saving amendment to the 1986 Act. For more details see my article on the Deregulation Act – Independent Experts, Western Morning News Farming Supplement Editorial published on the 5th August 2015.

The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 came into force on the 1st October.  The regulations state that landlords must ensure that smoke alarms are provided on each storey of premises in which there is a room used wholly or partly as living accommodation.  The regulations also state that a carbon monoxide alarm must be provided in any room of the premises used wholly or partly as living accommodation which contains a solid fuel burning combustion appliance.  Landlords must make checks to ensure that each alarm is in proper working order at the start of a new tenancy.  Carbon monoxide alarms are not required to be installed in rooms containing oil or gas appliances as these are not solid fuel combustion appliances.  These regulations apply to residential premises in England let on a tenancy which grants one or more persons the right to occupy all or part of the premises as their only or main residence.  

Model Clauses (MCs) apply to all AHA tenancies in England and Wales under the Agricultural Holdings Act 1986 unless the tenancy agreement states otherwise, and also to some Farm Business Tenancies under the Agricultural Tenancies Act 1995.  As the MCs were last reviewed in 1988 certain provisions became outdated and gaps appeared as a result of technological advancements.

The new MCs apply from the 1st October 2015 and may have an impact on existing tenancies, both under the 1986 and 1995 Acts, as well as those formed from now on.  It is important to check now whether any liabilities, relevant, to such agreements, will shift from the landlord to tenant and vice versa, following the introduction of the new MCs.