Time to get recognition for improvements made

We’re now almost 18 months in to the amnesty on tenants’ improvements.

This three-year amnesty, introduced by Scottish Government under the Land Reform (Scotland) Act 2016, gives an opportunity to agricultural tenants and landlords to regularise deficient records of certain qualifying improvements carried out by tenants.

Absence of accurate and correct records may preclude tenants from claiming compensation at the end of a tenancy and may also mean that rent is overcharged during the tenancy.

The process, however, can be tricky and potentially result in prolonged negotiations or dispute between the two parties.

Not all works carried out by tenants necessarily qualify under the amnesty.

Therefore, an understanding of the scope of the amnesty and good preparation for discussion with landlords is key.

A year into the amnesty period, we would like to see more tenant farmers engaging with the process.

This is a one-off opportunity – a lot of tenants have not yet done anything about it and time is wearing on.

A number of tenant farmers are keen to get their house in order and progress negotiations and they need to ensure they do not miss this chance to obtain proper recognition for work which may have been carried out – sometimes many years ago.

In the first instance, records of improvements should be collated. We are well aware that where these are missing or incomplete, the task becomes more complex.

In order to avoid wasted effort, clarity over who provided the improvement is important when in discussions and evidence of the extent of work carried out is essential.

The benefits of the amnesty to tenant farmers are two-fold: Firstly, when rent is being reviewed tenants’ improvements must be left out of account and, secondly, at the end of the tenancy those improvements should qualify for compensation.

In both instances, agreed and accurate records of tenants’ improvements greatly simplify the process.

Although formal procedures are available under legislation, it is always preferable to seek agreement by negotiation and the Tenant Farming Commissioner has produced guidance to assist with this.

However, adequate time should be allowed for full discussion of all relevant points to maximise the prospects of successful negotiation.

With less than two years of the amnesty remaining and with a view to opening discussions, tenants are advised not to delay gathering the necessary information.