By Rod Lloyd-Jones, Clarke Willmott.

FOR all the talk of Agricultural Holdings Act tenancies “withering on the vine”, the Government is not only updating the model repairing and insuring clauses, but is also introducing expert determination as an alternative to arbitration.

Expert determination.

It has long been suggested that many disputes arising under the Agricultural Holdings Act 1986 (AHA) would be cheaper to resolve if referred to an independent expert, rather than arbitration. The Government has now been persuaded to put this into effect.

The new provisions amend the AHA to allow referral to expert determination for disputes over most issues, including rent review, agreeing written terms, compensation for fixed equipment, removal of tenant’s fixtures, the model clauses, terms of a succession tenancy and compensation on termination. However, amendments have not been sought in relation to the ‘special cases’ notices to quit, and ‘unqualified’ notices to quit.

Whilst this new flexibility is welcomed, its restricted application will not mean an end to the lengthy disputes that can arise on termination of AHA tenancies. Critical to its success will also be the choice of a suitably qualified expert.

Model Clauses Last Summer the Government consulted on proposals to update the model repairing and insuring liabilities. It has now been announced that the current model clauses will be replaced by a completely new set.

Some existing liabilities will remain unchanged; others will be clarified or changed altogether, eg repair of main and exterior walls and structure of buildings, chimneys, door and window furniture and glass, electrical supply systems, fitted kitchens, garden and yard gates, central heating systems and underground water pipes. New items likely to be covered include responsibility for slurry, silage and effluent systems, renewables equipment, fuel storage equipment, livestock handling systems and flood banks.

Will these changes affect existing tenancies?

For most AHA tenancies and FBTs whether the changes will affect existing arrangements will depend on the exact wording in the agreement. Many agreements incorporate the model clauses by reference to the relevant legislation. This may mean that the changes are automatically incorporated into the tenancy terms. If however the model clauses have been replicated in express provisions in the agreement, then the changes may well not apply.

As the legislation is finalised all landlords and tenants should review their written agreements and determine whether their obligations will change.