Spotlight on reform: Agricultural tenancy law under review

A much-anticipated review of agricultural tenancy legislation by the Law Commission is now underway, with the government aiming to modernise and streamline a framework that has, in many respects, struggled to keep pace with the realities of modern land management.

The review centres on two key pieces of legislation:

• The Agricultural Holdings Act 1986 – covering the older, more regulated AHA tenancies typically granted prior to 1 September 1995; and

• The Agricultural Tenancies Act 1995 – which governs modern Farm Business Tenancies (FBTs).

Why now?

This review comes in response to long-standing concerns raised across the rural sector:

• The balance of rights and responsibilities between landlords and tenants is, in many instances, out of step with current farming needs.
• Short-term tenancies and limited security of tenure can stifle tenant investment and deter innovation.
• There are growing questions around how well the current legal framework supports diversification – particularly where tenants are seeking to adapt or expand their operations.
• Fundamentally, the legislation must evolve if it is to enable economic resilience and growth within the agricultural sector, and to offer real opportunity for both established and next-generation farmers.

What might change?

We expect the review to consider a range of practical and structural issues, including:

• Whether tenants have adequate security and flexibility to invest and build long-term businesses.
• Access for new entrants – and how tenancy law might support their route into farming.
• Building greater landlord confidence in letting land, under clear and fair arrangements.
• The current barriers to diversification, and how these might be addressed within tenancy agreements.
• Encouraging more collaborative models of landlord-tenant relationships.
• Resolving technical legal points that have created inefficiencies or disputes in practice.

Our perspective

As rural law specialists advising both landowners and tenants, we strongly welcome this opportunity for reform. But any legislative shift must reflect the practical realities on the ground – achieving a measured balance that supports investment, encourages land to be let on fair terms, and provides clarity for all parties involved.