Changes to AHA Tenancy Succession Rules

This entry was posted on Wednesday, October 2nd, 2024 at 3:30 pm

Succession rules have changed to simplify the process, shifting the focus to improving agricultural productivity and more sustainable farming.

Following the Tenancy Reform Industry Group (TRIG) recommendations and the subsequent Agriculture Act 2020 the final changes to the Agricultural Holdings Act 1986 (AHA) were implemented on 1^st September 2024. If you are an agricultural landlord or tenant with an AHA tenancy you need to be aware of the changes to the rules for succession.

Before the changes, if succession rights existed, the potential successor was required to show that they were both ‘eligible’ and ‘suitable’ to take on the tenancy. This is still the case however the requirements to fulfil these tests has slightly changed.

Eligibility test

Close living relative – spouse, civil partner, child, sibling, treated child
Principle source of livelihood – the potential successor must show that in at least 5 out of the last 7 years of the outgoing tenant’s tenancy they derived their only/ main source of income from their agricultural work on the holding or an agricultural holding it forms part of. This is different from the previous regime in that potential successors had to demonstrate that they were not the occupant of another commercial unit of agricultural land (the ‘commercial unit test’).

Suitability Test

Potential successors are required to demonstrate their ‘suitability’ by showing that they have the ability to farm ‘commercially to high standards of efficient production and care for the environment’. Other factors such as training, experience, capability and skills should also be considered by the landlord.

Retirement

It should also be noted that a tenant no longer has to be 65 to give retirement notice, this can be done at any age.

It is extremely important to observe the statutory time periods for the service of notices under the AHA and we would recommend that professional advice should be taken early. With the removal of the commercial unit test landlords may be concerned by the changes and perhaps see them as an obstacle to getting vacant possession. Early conversation is always recommended with your advisor and this is an opportunity to consider your current position and any potential changes you need to make.

Contact our Rural Team for advice on your succession rights.

01904 489 731