What is an AOC, who qualifies and what agriculture means
An Agricultural Occupancy Condition (AOC) is a planning condition attached to a rural dwelling restricting occupation to persons employed or last employed in agriculture or forestry in the local area (and dependants). The standard DCLG model condition wording: 'occupation shall be limited to a person solely or mainly employed, or last employed, in the locality in agriculture (as defined in TCPA 1990 s.336) or in forestry, or a widow or widower of such a person and to any resident dependants.' Definition of agriculture (TCPA 1990 s.336): horticulture; fruit growing; seed growing; dairy farming; breeding/keeping of livestock; grazing land; market gardens; nursery grounds; woodlands ancillary to farming. Equestrian uses (horse-riding; livery; polo) are NOT agriculture.
Enforcement risks for landlords and impact on value and mortgage
- Breach of Condition Notice (BCN): LPA can serve a BCN under s.187A if let to non-qualifying tenant — non-compliance is a criminal offence; no right of appeal against a BCN
- Enforcement notice: LPA can serve an enforcement notice requiring breach to be remedied — right of appeal to Planning Inspectorate
- Market value: typically 20-40% below comparable unrestricted rural dwelling — restricted occupier pool depresses demand
- Mortgage: many BTL lenders decline to lend on AOC properties; specialist rural lenders (Handelsbanken; some building societies; private banks) may lend at reduced LTV
- Marriage value: difference between restricted value and unrestricted value can be substantial once AOC is discharged
Discharging an AOC under TCPA 1990 s.73
Application to the LPA under Town and Country Planning Act 1990 s.73 to vary or remove the condition. LPA will only agree if condition is no longer necessary. Required evidence: genuine marketing of the property to qualifying agricultural workers at the restricted market value (typically 20-40% of unrestricted value) for a minimum 12 months (some LPAs require 18-24 months); marketing in agricultural trade press (Farmers' Weekly; Scottish Farmer) and via agricultural agents; no reasonable offer received; expert rural planning consultant's report on marketing and local agricultural need. LPA has discretion to refuse — applicant can appeal to Planning Inspectorate. AOC is distinct from an agricultural tenancy (AHA 1986; ATA 1995) — an AOC is a planning condition on the property; an agricultural tenancy is a lease between landlord and farming tenant.