The proposals of the Tenancy Reform Industry Group (TRIG) for legislative change have now been incorporated into the Regulatory Reform Order (Agricultural Tenancies) (England and Wales) Order 2006 which amends the Agricultural Holdings Act 1986 and the Agricultural Tenancies Act 1995. The Order was first laid before Parliament on 30 March and came into force on 19 October. The Order will promote a healthy and competitive tenanted sector without removing tenant protection, or disrupting the landlord and tenant balance. In particular, the Order will:
(a) Enable a successor to a tenancy to earn income from diversified activities without losing the right to succession, where the landlord consents,
(b) Enable landlords and tenants to reach their own agreements on rent reviews and end of tenancy compensation,
(c) Make it easier for landlords and tenants to restructure holdings held under a 1986 Act tenancy,
(d) Remove the need for unnecessary applications to the Agricultural Land Tribunal where a landlord agrees on the successor to the tenancy,
(e) Enable landlords and tenants to agree the length of a notice period to suit their particular circumstances, providing it is longer than the minimum period of 12 months.
These changes will foster tenant farmer diversification and enable landlords and tenants to adapt to the modern agricultural climate.