New landlord-tenant code is welcomed
ANEW code of practice to regulate the conduct of landlord and tenant relationships within the agricultural sector in England has been launched.
A key recommendation of the Rock Review supported by the Government, the code is designed to foster and encourage “clarity, communication, and collaboration” in the tenanted sector.
It provides guidance on the standards of behaviour expected from landlords and tenants, as well as those providing professional advice in connection with agricultural tenancy matters.
The code aims to support landlords and tenants, and their professional advisers, to “establish and maintain positive, productive, and sustainable commercial relationships”.
It has been produced and led from within the industry by an expert working group representing every facet of the tenanted sector, with support from the Department for Environment, Food and Rural Affairs (Defra).
Environment Secretary Steve Barclay said: “The tenanted sector is a central part of this Government’s work to back British farmers and grow the rural economy. That’s why I am pleased to see the launch of this new code of practice, which will ensure the tenanted sector continues to thrive by promoting positive relationships between tenants and landlords.
“It continues our progress to implement the Government’s response to the Rock Review, with over a third of the commitments already completed, and actions underway to deliver on most other areas.”
Julian Sayers, chair of the Farm Tenancy Forum, which was established in the wake of the Rock Review report from the Tenancy Working Group, added: “I hope all those who are party to the granting of agricultural tenancy agreements and negotiating associated matters will embrace this code for the good of the let sector as a whole. The member organisations of the Farm Tenancy Forum will be actively promoting awareness and adoption of the code along with monitoring its impact during our regular meetings.”
Both the report of the Rock Review and a more recent survey conducted by the Tenant Farmers Association (TFA) highlighted widespread evidence of poor conduct, particularly by landlords’ agents.
The TFA found that 30% of respondents to its survey felt ‘bullied or harassed’ by their landlords, and 37% felt bullied or harassed by their landlords’ agents. 70% of respondents reported that they did not even have regular meetings with their landlords.
However, 91% of respondents to the TFA survey said that the sector would benefit from a code of practice.
George Dunn, chief executive of the TFA, said it was a shame that “in this day and age” a code of practice is needed to tell people how to behave, adding that “for too long tenants have felt marginalised and mistreated and this code of practice is a major step forward for the sector”.
“Whilst I am not naïve enough to think that, in itself, the code of practice will resolve all the current problems within the sector, it will provide an important touch point for people to call out and deal with poor practice,” he added. Mr Dunn also urged professional bodies which regulate land agents and other advisers in the let sector to make the code of practice “part of their regulatory functions”, so that professionals “can be truly held to account for their actions”.
“I am particularly concerned to ensure that landlords’ agents are respectful of place and people particularly when they are holding meetings within the farm kitchens of tenant farmers were the words that they use will reverberate around that special place for weeks, months and years after any engagement takes place.
“The code of practice emphasises the need for matters to be discussed in good time, so that people are not rushed into making decisions. Equally, in holding sensitive discussions, it will be necessary to choose the time to have those conversations, carefully avoiding busy times of the year or periods of particular emotional stress for farmers and their families.”
Now that the code of practice has been published, Mr Dunn said the TFA will be pushing for the appointment of a Tenant Farming Commissioner
who can oversee and develop the code as needed. An announcement about the appointment of a commissioner is due to be made by Defra in May following its recent call for evidence.
Jeremy Moody, secretary and adviser to the Central Association of Agricultural Valuers (CAAV), one of the nine industry organisations to have endorsed the code of practice, also commented: “With the need for a flexible, commercial and positive tenanted sector as a key part of managing the current changes in the agricultural sector, the CAAV was happy to work with all the members of the Farm Tenancy Forum to help deliver what was a key part of the Government’s response to the Rock Review. The CAAV has endorsed the use of this code of practice by our members and all the parties to a tenancy agreement.
“In promoting the code and its use by all parties the CAAV’s model Farm Business Tenancies (FBTs) for England now include a reference to the code so that, as part of our “no surprises” approach, it is there as a guide for the parties to a tenancy agreement to behave with fairness and respect.”