Austin calling for ‘ fresh rethink’ on tenancy rules

A warning that changes to rent review procedures proposed under the 2016 Land Reform Act risk being“more proc ed ural and complex” than the present arrangements has been made by a leading professional body.

And, adding that the industry should take stock of the future needs of the sector, Ian Austin, president of the Scottish Agricultural Arbiters Association( SAAVA), also called for some “fresh thinking” on farm te nancy legislation.

He said that the new system proposed in the act for determining rental values – based largely on the productive capacity of the land – was currently under scrutiny.

“This method of finding a fair rent was intended to provide a simpler, more transparent and faster approach,” said Austin.

However, while much work had gone into looking at how the proposals could be implemented– including a 230 page report produced for the Scottish Government by land agents Savills – he said subsequent discussions had indicated that the approach offered little in the way of simplification.

“We have now reached a point where it would be sensible to take stock… and 0 Ian Austin said new rules were more complex consider whether the proposed approach is actually practical before spending more time and effort on taking it for ward,” said Austin.

He said that an industrywide debate on the findings of the report would be of more value than blindly continuing down the stated route: “If the conclusion is that we should explore other options then it is better and more productive to find this now than to spend more time on the present project just because it exists.”

He also said a more radical approach was required to halt the continued decline in the sector, which continued to shrink.

Advocating that all existing agreements were left unaltered, he said some strategic reforms by the Scottish Government could unlock a new future for the country’s farm businesses.

He claimed a new flexible framework for agreements for new letting, leaving it to owners and farmers to agree the terms on which land is let and taken, was required.

“The current complex and rigid legislation is getting in the way and so, where it is still used, only the shortest term agreements are offered. Simpler legislation, nearer the freedom of contract applying to other Scottish commercial leases, could unlock more lettings,” said Austin.

He also proposed that more recognition should be given to the importance of owners becoming landlords: “Currently, we have a climate in Scotland in which landlords have been more criticised than valued, and so it is no surprise we have fewer of them.”

He said that SAAVA was also calling on the UK government to follow the Irish model where income tax relief given for “arm’s length” private leases of more than five years had encouraged the letting of more land.

“These three measures – simple legislation for new lettings, giving owners the confidence to let and fis - cal encouragement could open a new age for Scottish agriculture,” he said.

“Now is the time to be bold and give our farmers the tools to thrive in the years ahead.”