Agricultural Landlord and Tenant Code of Practice: Balancing the rights of Landlords and Tenants

On 8 April 2024 The Agricultural Landlord and Tenant Code of Practice for England was launched to provide guidance on the standards of behaviour expected from landlords and tenants and their professional advisers involved in agricultural tenancy matters. 

The Code, which is entirely voluntary in nature, is founded on three principles: clarity, communication and collaboration, and was implemented following the Rock Review which seeks to create a resilient and viable agricultural tenanted sector which “balances the rights and interests of both landlords and tenants”. 

The Code sets out how these principles can be achieved from the grant of a tenancy through to resolving disputes, with specific sections on best practice during the tenancy life-cycle such as  the agreement of tenancy terms, payment of rent, rent reviews, repairs, termination and renewal. 

As for professional advisers, the Code provides that they should make their client aware of the code and work constructively with their clients and other parties. 

The Code, which is the first of its kind for agricultural landlord and tenant matters, does not create any new legal obligations, and does not change the existing statutory framework which applies to the grant and termination of agricultural tenancies. However, it promotes constructive and positive engagement between landlords and tenants, with the acknowledgement that disputes can, and do, arise in practice.

Those working in the agricultural sector will be aware of the longevity of such tenancies. Those organisations which have endorsed the Code hope that the principles of the Code will help foster a positive and collaborative relationship between landlords, tenants and their professional advisers.  Only time will tell what the impact of the Code will be on the agricultural sector but those involved will be keeping a close eye on developments.