Rent freeze plea in face of ‘biggest economic depression’
A call for farm rents to be cut – or at the very least pegged at current levels – has been issued as the industry faces up to what could be the “biggest economic depression for three hundred years”.
The plea was put forward yesterday by the Scottish Tenant Farmers Association which claimed that tenants needed time to recover from the havoc caused by the Covid19 pandemic and to prepare for the prospect of a no-deal Brexit compounded by the spectre of an imminent recession.
In a letter to both the Tenant Farming Commissioner, Bob Mcintosh, and the landowner’s organisation, Scottish Land and Estates, STFA chairman Christopher Nicholson said that many tenants had been taken aback that some landlords were intent on pursuing rent increases in the current climate – while agents were also serving notices for reviews next year.
“We think it is unreasonable and unfair to seek rent increases at this time,” said Nicholson.
He said he believed that another reason for rent reviews being pushed by landowners was to have them conducted before the proposed “new and fairer” system was introduced – and he called on the Scottish Government to press ahead with its implementation. Tenant Farming Commissioner, Bob Mcintosh said that in light of the Covid restrictions, reviews due this spring would be best postponed unless they could be concluded without the need for a face-to-face meeting – and it was important no one felt pressurised into such a situation:
“If this means that a rent review has to be delayed, this is a small price to pay to ensure the continued health of the parties involved.”
On the broader economic front, Mcintosh agreed that both Covid-19 and Brexit were having a significant impact on Scotland’s economy and the profitability of the agricultural sector.
He said difficulties in predicting the economic conditions that lay ahead for the farming sector due to these issues, together with the upcoming introduction of a new rent review process, meant that landlords and tenants should think carefully about whether this was an appropriate time to conduct a rent review.
Responding to STFA’S claims, Scottish Land and Estates (SLE) said there was ample evidence that landowners had been taking the impact of the Covid-19 pandemic into account in relation to rent reviews:
“In some circumstances, that has meant reviews being deferred or rents held at current levels,” said the organisation’s chief executive, Sarah-jane Laing,
However she made the point that any allegation of landlords acting unreasonably should be supported by transparent evidence and brought to the attention of the TFC.
“Rent reviews are a twoway process, and if any tenant is experiencing difficulties they should contact their landlord without delay.” Laing said that communication was vital, especially during the current crisis but added thatthe issuing of rent notices for reviews to take place at a future date was a necessary part of the administrative process:
“Any rent review which does take place in the next 12 months will of course take into account the many factors which will affect farming,” she oncluded.