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Assured shortholds – agricultural land |
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’A tenancy under which agricultural land, exceeding two acres, is let together with the dwelling house’ cannot be an assured tenancy (Para 6, Sched 1, HA 1988).
This provision is a carry-over from RA 1977 and from pre-war legislation. Thus, if the letting includes agricultural land of more than two acres, it will fall back to the common law position, which means (amongst other things) that an ordinary notice to quit will be sufficient for L to regain possession, and there is no need to comply with the tenancy deposit scheme. Note that such tenancies will not have been compulsorily ‘converted’ by the recent increase in maximum rent under assured shortholds from £25,000 to £100,000.
However, a useful note in the SJ points out that careful attention needs to be paid to the definition of ‘agricultural land’ (in s23(a) General Rate Act 1967) and that definition is open to some uncertainity. Accordingly, the advice is to err on the side of caution and assume that a new letting will be an assured shorthold unless there are very clear-cut reasons for thinking it comes within the agricultural exemption. See note from Mills & Reeve LLP in [2010] SJ 2 November 26.
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March 2011 |