AHA 1986 tenancies — security, succession and fair rent
Agricultural Holdings Act 1986 (AHA 1986) governs tenancies created before 1 September 1995. These carry full security of tenure: Notice to Quit served by landlord but tribunal consent required on most grounds (Agricultural Land Tribunal). Statutory succession rights for qualifying close relatives (spouse; family member who is primarily occupied in agriculture on the holding) — up to 2 successions. Rent set by ALT arbitration at 3-year intervals — typically below market level due to security of tenure discount.
- Notice to Quit (NTQ): tenant can serve counter-notice within 1 month triggering ALT arbitration; ALT consent required to bring tenancy to an end on most grounds
- Succession rights: qualifying close relative can apply to ALT for new tenancy on death or retirement of tenant; up to 2 successions; applicant must satisfy occupancy and livelihood conditions
- Fair rent: set by ALT arbitration not free negotiation; typically below market rent; 3-year rent review periods
- Incontestable grounds for NTQ (no ALT consent needed): non-payment of rent 2+ months; insolvency; certificate of bad husbandry; ministerial certificate; planning permission for non-agricultural use
Farm Business Tenancies, tied accommodation, Class Q and IHT Agricultural Property Relief
Farm Business Tenancies (ATA 1995) — no security of tenure beyond contractual term; 12 months' NTQ minimum for 2+ year terms; 3-yearly rent reviews to market level; no succession rights. Tied farm worker service occupancies excluded from Housing Act if genuine (occupation for better performance of duties; no exclusive possession). Class Q PD: agricultural building to dwellinghouse — up to 5 units; max 865 sqm; prior approval from LPA. IHT APR: 100% on qualifying agricultural land/buildings; owner-occupied 2 years; let 7 years; capped at £1m combined with BPR from April 2026.
- Farm Business Tenancy requirements: character primarily or wholly agricultural; business conducted on the land; minimum 1-year term; no minimum size
- NTQ for FBTs: minimum 12 months written notice for terms of 2+ years; expiring on term date; 3-yearly rent reviews to open market level
- Tied farm worker service occupancy: genuine service occupancy excluded from Housing Act; evolved tenancy treated as assured tenancy — RRA 2025 applies in England from 1 May 2026
- Class Q PD: up to 5 dwellinghouses; max 865 sqm; existing agricultural use since 20 March 2013; 5 hectare+ holding; not listed/SSSI/AONB; prior approval from LPA