Rural Rent and Agriculture Disputes

When landlords and tenants cannot agree on rural rent, the Agricultural Holdings Act 1986 (AHA 86) and the Agricultural Tenancies Act 1996 (ATA 96) outline specific procedures:

• 12-Month Notification

The landlord must notify the tenant of their intention to review the rent 12 months before the term date, typically in spring or autumn.

• Negotiation Period

After notification, both parties have time to discuss and negotiate new rent terms.

• Submission of Proposals

If no agreement is reached, each party must submit their proposed rent figures within a specified timeframe.

• Referral to an Arbitrator or Expert

If negotiations fail, either party can apply to the Royal Institution of Chartered Surveyors (RICS) for an arbitrator or expert before the end of the initial term date. This application requires a completed DRS3 form and the payment of a fee to be valid. The form and fee must be received before the term date expires.

In addition to rural rent reviews, various disputes may arise under various rural UK legislation, including:

• Agricultural Holdings Act 1986 (AHA 86)
• Agricultural Tenancies Act 1996 (ATA 96)
• Agriculture Act 1986
• Agriculture Act 2020

Agricultural disputes can vary widely and often involve issues related to general agricultural practices. Some of the most common matters include:

• Machinery and Equipment: Disagreements regarding the use, maintenance, or ownership of agricultural machinery and equipment.
• Milk Quotas: Conflicts over the allocation and management of milk production quotas.
• Tenancy Agreements and Conditions: Issues arising from the terms and conditions of tenancy agreements, including disputes over compliance and interpretation.

If negotiations are unsuccessful, either party may apply to the Royal Institution of Chartered Surveyors (RICS) for an arbitrator or expert. This application must include a completed DRS4 form.

Both parties must agree to use the service.

• Application fee: £195 for appointing an arbitrator, payable by either party.
• Arbitrator fees: As long as parties abide by the procedural rules, the arbitrator will only charge for 3 days’ work at £1,000 (plus vat) per day.
• Costs are equally shared between both parties, irrespective of the outcome.

These costs will be shared equally by the parties, and each party will pay their own costs regardless of the outcome.

RICS ensures that arbitrators have the necessary qualifications in the relevant law and arbitration practices. The service provides a streamlined and transparent approach, aiming to resolve disputes quickly and effectively with fixed costs and a clear timetable.

We facilitate the resolution of rent conflicts between landlords and tenants as outlined in the Agricultural Holdings Act 1986 (AHA 86) and the Agricultural Tenancies Act 1996 (ATA 96). Our qualified arbitrators guide parties through the arbitration process to reach fair decisions regarding rent reviews, ensuring that agreements are made promptly and equitably.

RICS also addresses a variety of agricultural issues, including machinery disputes, milk quota allocations, and tenancy agreement interpretations. Our expert arbitrators work collaboratively with both parties to provide practical solutions that uphold the values of rural communities while minimising disruption to operations.

Providing a streamlined and cost-effective approach to dispute resolution. With clear guidelines and procedures, this service ensures timely resolutions for parties seeking alternatives to traditional arbitration. RICS arbitrators, committed to impartiality and professionalism, leverage their expertise to navigate disputes effectively, whether related to contractual disagreements or other issues, ultimately facilitating fair outcomes for all parties involved.