The Case For Terminating An AHA Tenancy

One of the reasons for the introduction of the Agricultural Tenancies Act 1995 ("the 1995 Act") was to counter some of the more burdensome provisions imposed by the Agricultural Holdings Act 1986 ("1986 Act"), not least the difficulty of terminating tenancies. The rights relating to security of tenure and succession under the 1986 Act were so onerous that most landlords chose to let their land via licences (although a number of these were converted into AHA tenancies). Unfortunately, licences did not offer tenants the long term certainty required to establish a farming business and the agricultural sector suffered as a result.

Although the creation of Farming Business Tenancies (FBT) under the 1995 Act has redressed that problem, many AHA tenancies continue to exist, largely because the security of tenure and succession rights enjoyed under the 1986 Act make the termination of such tenancies difficult.

What qualifies for an AHA tenancy?

Only a lease of an "agricultural holding" of land and/or buildings for agricultural use qualifies as an AHA Tenancy. To receive protection under the 1986 Act, the AHA tenancy must be let for a number of years or alternatively from year to year. However, Section 2 of the 1986 Act allows short tenancies or licences of less than a year to be statutorily converted into a yearly tenancy and receive the protection under the 1986 Act, unless those short tenancies or licences obtained prior ministry approval. In reality, ministry approval was rarely obtained and many informal or short-term licences and tenancies have since acquired protection under the 1986 Act.

Terminating an AHA tenancy

The grounds upon which an AHA tenancy may be terminated are specified in the 1986 Act, and are complicated. The burden is on the landlord to ensure he can comply with those grounds specified in the 1986 Act.

To terminate an AHA tenancy, a landlord must serve a notice to quit under Section 25 of the 1986 Act. If the tenant is unwilling to accept the notice to quit, he may serve a counter notice under Section 26(1) and in doing so refer the notice to quit to the First Tier Tribunal ("the Tribunal") or, if appropriate, the Agricultural Land Tribunal (Wales). The Tribunal will have to decide whether to consent to the landlord's notice to quit, having regard to the conditions specified in Section 27(3) of the 1986 Act. Specifically, the Tribunal will have to establish that the landlord's proposal to terminate the AHA tenancy is in the...