A key aim of the Agricultural Holdings
(Scotland) Act 2003 is to revitalise the tenanted sector in
Scotland. The proposals to introduce new tenancy options
provide more scope for tenants to diversify into
non-agricultural activities and introduce quicker and
cheaper dispute resolution arrangements have received broad
support from landlords and tenants alike.
The Act introduces 2 new types of tenancy, both of which
offer the tenant strong security of tenure but only for a
defined period. Short limited duration tenancies (or SLDTs)
will have a maximum life of 5 years, while limited duration
tenancies (LDTs) will have a minimum term of 15 years. A
LDT could be terminated after 10 years, but only with the
agreement of both parties at the date of termination.
Without this agreement, the lease would continue - but only
until the 15 years (or a longer period, if stipulated on
the lease) had elapsed. These new types of tenancy closely
reflect proposals developed jointly by the Scottish
Landowners' Federation and NFU Scotland. The reason for a
minimum term for LDTs is to provide tenant farmers with the
window they need to plan, develop and work their
holding.
The proposal in the Act that would give secure tenant
farmers a pre-emptive right to buy the holding they have
rented from a selling landlord is designed to be consistent
with the Act's aim of revitalising the tenanted sector. Its
purpose would be to ensure that ownership of a holding
cannot be sold over a tenant's head. It would also extend
to all secure tenants the common current practice of many
landlords, who already invite sitting tenants to buy their
holding before putting land on the open market. The right
to buy would apply only when there was a willing seller, a
willing secure tenant buyer and a sale and purchase price
which reflected open market value.