Agricultural Holdings (Scotland) Act 1991

13 Variation of rent. S

(1) Subject to subsection (8) below, the landlord or the tenant of an agricultural holding may, whether the tenancy was created before or after the commencement of this Act, [F1 have determined by the Land Court] the holding as from the next day after the date of the notice on which the tenancy could have been terminated by notice to quit (or notice of intention to quit) given on that dateF2 ....

(2) [F3 In relation to such a question, the Land Court] shall determine, in accordance with subsections (3) to [F4 (7A)] below the rent properly payable in respect of the holding as from the “next day” mentioned in subsection (1) above.

(3) For the purposes of this section the rent properly payable in respect of a holding shall normally be the rent at which, having regard to the terms of the tenancy (other than those relating to rent), the holding might reasonably be expected to be let in the open market by a willing landlord to a willing tenant, [F5 disregarding—

(a) any effect on rent of the fact that the tenant is in occupation of the holding; and

(b) any distortion in rent due to a scarcity of lets,

but having regard to the matters referred to in subsection (4) below. ]

[F6 (4) For the purposes of determining the rent payable under subsection (3) above, the Land Court shall have regard to the following—

(a) information about rents of other agricultural holdings (including when fixed) and any factors affecting those rents (or any of them) except any distortion due to a scarcity of lets; and

(b) the current economic conditions in the relevant sector of agriculture.]

(5) The [F7 Land Court] shall not take into account any increase in the rental value of the holding which is due to improvements—

(a) so far as—

(i) they have been executed wholly or partly at the expense of the tenant (whether or not that expense has been or will be reimbursed by a grant out of moneys provided by Parliament) without equivalent allowance or benefit having been made or given by the landlord in consideration of their execution; and

(ii) they have not been executed under an obligation imposed on the tenant by the terms of his lease;

(b) which have been executed by the landlord, in so far as the landlord has received or will receive grants out of moneys provided by Parliament in respect of the execution thereof,

nor fix the rent at a higher amount than would have been properly payable if those improvements had not been so executed.

(6) The continuous adoption by the tenant of a standard of farming or a system of farming more beneficial to the holding than the standard or system required by the lease or, in so far as no system of farming is so required, than the system of farming normally practised on comparable holdings in the district, shall be deemed, for the purposes of subsection (5) above, to be an improvement executed at his expense.

(7) The [F8 Land Court] shall not fix the rent at a lower amount by reason of

[F9 ( a)] any dilapidation or deterioration of, or damage to, fixed equipment or land caused or permitted by the tenant [F10 or

(b) any reduction in the rental value of the holding resulting from—

(i) the use of the land or part of the land, or changes to the land, for a purpose that is not an agricultural purpose; or

(ii) the carrying out of conservation activities on the land.]

[F11 (7A) The Land Court shall take into account any increase in the rental value of the holding resulting from the use of the land for a purpose that is not an agricultural purpose.]

(8) Subject to subsection (9) below, a reference to [F12 the Land Court] under subsection (1) above shall not be demanded in circumstances which are such that any increase or reduction of rent made in consequence thereof would take effect as from a date earlier than the expiry of 3 years from the latest in time of the following—

(a) the commencement of the tenancy;

(b) the date as from which there took effect a previous variation of rent (under this section or otherwise);

(c) the date as from which there took effect a previous direction under this section that the rent should continue unchanged.

(9) There shall be disregarded for the purposes of subsection (8) above—

(a) a variation of rent under section 14 of this Act;

(b) an increase of rent under section 15(1) of this Act;

(c) a reduction of rent under section 31 of this Act.

Textual Amendments

F1 Words in s. 13(1) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), s. 95(3)(4), Sch. para. 15(a)(i) (with s. 95(2)); S.S.I. 2003/548, art. 2(i) (with Sch.)

F2 Words in s. 13(1) repealed (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), s. 95(3)(4), Sch. para. 15(a)(ii) (with s. 95(2)); S.S.I. 2003/548, art. 2(i) (with Sch.)

F3 Words in s. 13(2) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), s. 95(3)(4), Sch. para. 15(b) (with s. 95(2)); S.S.I. 2003/548, art. 2(i) (with Sch.)

F4 Word in s. 13(2) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), ss. 63(a), 95(3), 95(4) (with s. 95(2)); S.S.I. 2003/548, art. 2(e) (with Sch.)

F5 S. 13(3)(a)(b) and words substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), ss. 63(b), 95(3), 95(4) (with s. 95(2)); S.S.I. 2003/548, art. 2(e) (with Sch.)

F6 S. 13(4) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), ss. 63(c), 95(3), 95(4) (with s. 95(2)); S.S.I. 2003/548, art. 2(e) (with Sch.)

F7 Words in s. 13(5) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), s. 95(3)(4), Sch. para. 15(c) (with s. 95(2)); S.S.I. 2003/548, art. 2(i) (with Sch.)

F8 Words in s. 13(7) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), s. 95(3)(4), Sch. para. 15(d) (with s. 95(2)); S.S.I. 2003/548, art. 2(i) (with Sch.)

F9 Words in s. 13(7) renumbered as s. 13(7)(a) (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), ss. 63(d)(i), 95(3), 95(4) (with s. 95(2)); S.S.I. 2003/548, art. 2(e) (with Sch.)

F10 S. 13(7)(b) and preceding word inserted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), ss. 63(d)(ii), 95(3), 95(4) (with s. 95(2)); S.S.I. 2003/548, art. 2(e) (with Sch.)

F11 S. 13(7A) inserted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), ss. 63(e), 95(3), 95(4) (with s. 95(2)); S.S.I. 2003/548, art. 2(e) (with Sch.)

F12 Words in s. 13(8) substituted (27.11.2003) by Agricultural Holdings (Scotland) Act 2003 (asp 11), s. 95(3)(4), Sch. para. 15(e) (with s. 95(2)); S.S.I. 2003/548, art. 2(i) (with Sch.)