The Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006

JurisdictionUK Non-devolved
CitationSI 2006/2805

2006No. 2805

LANDLORD AND TENANT, ENGLAND AND WALES

REGULATORY REFORM, ENGLAND AND WALES

The Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006

18thOctober2006

The Secretary of State has-

(1) consulted, in accordance with section 5(1) of the Regulatory Reform Act 2001 1, such organisations as appear to him to be representative of interests substantially affected by his proposals for this Order, the National Assembly for Wales, and such other persons as he considered appropriate;

(2) following that consultation, considered it appropriate to vary part of his proposals, and undertaken such further consultation with respect to the variations as appeared to him to be appropriate;

(3) following those consultations, considered it appropriate to proceed with the making of this Order;

(4) laid a document containing his proposals before Parliament, in accordance with section 6 of the Regulatory Reform Act 2001, and the period for Parliamentary consideration under section 8 of the Act has expired;

(5) had regard to the representations made during that period and in particular to the 6th Report of the Regulatory Reform Committee of the House of Commons 2 and the 21st Report of the Delegated Powers and Regulatory Reform Committee of the House of Lords 3;

(6) laid a draft of this Order before Parliament with a statement giving details of those representations and of the changes he has made to his proposals in the light of them;

(7) reached the opinion that this Order does not remove any necessary protection, or prevent any person from continuing to exercise any right or freedom which he might reasonably expect to continue to exercise;

(8) as this Order creates burdens affecting persons, reached the opinion that-

(a) the provisions of this Order, taken as a whole, strike a fair balance between the public interest and the interests of the persons affected by the burdens being created, and(b) the extent to which this Order removes or reduces one or more burdens, or has other beneficial effects for persons affected by the burdens imposed by the existing law, makes it desirable for this Order to be made.

The draft of this Order has been approved by resolution of each House of Parliament.

Accordingly, the Secretary of State makes the following Order, in exercise of the powers conferred by section 1 of the Regulatory Reform Act 2001:

Citation, extent and commencement

1.-

(1) This Order-

(a) may be cited as the Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006,(b) comes into force on the day after the day on which it is made, and(c) subject to paragraph (2), extends to England and Wales only.

(2) The amendment, repeal or revocation by a provision of Schedule 1, 2 or 3 to this Order of an enactment which extends to Scotland or Northern Ireland also extends there.

Amendments to the Agricultural Holdings Act 1986

2.Articles 3 to 9 amend the Agricultural Holdings Act 1986 4.

Arbitration of rent

3.In section 12, in subsection (2), for the words from "date of the reference" to "arbitration" there shall be substituted "next termination date following the date of the demand for arbitration and accordingly shall, with effect from that next termination date".

Meaning of "substantial part"

4.-

(1) In section 34, after subsection (2) there shall be inserted-

(3) (3) Where this Act applies in relation to a tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995 5, the reference in subsection (1)(b)(iv) above to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value..

(2) In section 35, after subsection (2) there shall be inserted-

(3) Where this Act applies in relation to a tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in subsection (2) above (in the definition of "related holding") to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value..

(3) In section 49, after subsection (3) there shall be inserted-

(4) Where this Act applies in relation to a tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in subsection (3) above (in the definition of "related holding") to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value..

Succession on retirement or death of tenant - meaning of "eligible person"

5.-

(1) In section 36, after subsection (5) there shall be inserted-

(6) The reference in subsection (3)(a) above to agricultural work carried out by a person on the holding or on an agricultural unit of which the holding forms part includes-

(a) agricultural work carried out by him from the holding or an agricultural unit of which the holding forms part, and(b) other work carried out by him on or from the holding or an agricultural unit of which the holding forms part,

which is of a description approved in writing by the landlord after the commencement of this subsection.

(2) In section 41, after subsection (6) there shall be inserted-

(7) The references in subsections (1) and (6) above to agricultural work carried out by a person on the holding include-

(a) agricultural work carried out by him from the holding, and(b) other work carried out by him on or from the holding,

which is of a description approved in writing by the landlord after the commencement of this subsection.

(3) In section 50, after subsection (4) there shall be inserted-

(5) The reference in subsection (2)(a) above to agricultural work carried out by a person on the holding or on an agricultural unit of which the holding forms part includes-

(a) agricultural work carried out by him from the holding or an agricultural unit of which the holding forms part, and(b) other work carried out by him on or from the holding or an agricultural unit of which the holding forms part,

which is of a description approved in writing by the landlord after the commencement of this subsection.

Compensation on termination of tenancy

6.-

(1) In section 69, in subsection (1), after "in the holding" there shall be inserted ", or in any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding,".

(2) In that section, after subsection (1) there shall be inserted-

(1A) Where this Act applies in relation to any tenancy referred to in subsection (1) above by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in that subsection to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value..

(3) In section 73, the existing provision shall be renumbered as subsection (1).

(4) In that section, in subsection (1) (as renumbered by paragraph (3) above), after "on the holding" there shall be inserted ", or on any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding,".

(5) In that section, at the end there shall be inserted-

(2) Where this Act applies in relation to any tenancy referred to in subsection (1) above by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in that subsection to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value..

(6) In paragraph 5 of Schedule 9, in sub-paragraph (1), after "in the holding" there shall be inserted ", or in any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding,".

(7) In that paragraph, after sub-paragraph (1) there shall be inserted-

(1A) Where this Act applies in relation to any tenancy referred to in sub-paragraph (1) above by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in that sub-paragraph to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value..

(8) The amendments made by this article do not apply in relation to compensation payable on termination of a tenancy where that tenancy was granted before this article comes into force.

Arbitrations

7.-

(1) In section 84, in subsection (1), the words from "in accordance with" to the end of the subsection shall be omitted.

(2) In that section, for subsections (2) to (5) there shall be substituted-

(2) The arbitrator shall be a person appointed by agreement between the parties or, in default of agreement, a person appointed on the application of either of the parties by the President of the RICS.

(3) If the arbitrator dies, or is incapable of acting, a new arbitrator may be appointed as if no arbitrator had been appointed.

(4) No application may be made to the President of the RICS for an arbitrator to be appointed by him under this section unless the application is accompanied by such fee as may be prescribed as the fee for such an application; but once the fee has been paid in connection with any such application no further fee shall be payable in connection with any subsequent application for the appointment by him of a new arbitrator in relation to that arbitration.

(5) Where by virtue of this Act compensation under an agreement is to be substituted for compensation under this Act for improvements or for any such matters as are specified in Part II of Schedule 8 to this Act, the arbitrator shall award compensation in accordance with the agreement instead of in accordance with this Act.

(6) In this section "the RICS" means the Royal Institution of Chartered Surveyors..

(3) In section 94, in subsection (2)-

(a) after the words "section 22(4)" there shall be inserted ", 84(4)", and(b) the words "or paragraph 1(2) of Schedule 11" shall be omitted.

(4) In that section, in subsection (3), for the words "paragraph 1(2) of Schedule 11 to this Act" there shall be substituted "...

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