Repairing Standard extension to Agricultural Holdings from 28th March 2027

Under current legislation, Agricultural Holdings tenancies have been exempt from the Repairing Standards which was introduced by the Housing (Scotland) Act 2006 and sets the minimum qualitative physical standards which landlords are obliged to meet in relation to any tenancy let for residential use unless it has met one of the specifically met categories.

The Repairing Standards obliges the landlord to ensure that their properties are fit for human habitation ensuring that the property is wind and watertight, structurally sound, provide fixed heating systems, satisfactory fire and carbon monoxide detection and warning systems, as well as ensuring that the electrical installations are safe, to name a few of the legislative requirements.

From the 28^th March 2027 tenancies under the following Acts will be subject to meeting the Repairing Standard:

• The Crofters (Scotland) Act 1993
• The Small Landholdings (Scotland) Acts 1886 to 1931, and
• The Agricultural Holdings (Scotland) Act 2003, including
  • 1991 Act Tenancies
  • Short Limited Duration Tenancies
  • Limited Duration Tenancies
  • Modern Limited Duration Tenancies
  • Repairing Tenancies
• However, under section 16 of the Housing (Scotland) Act 2006, the Repairing Standard does not require any work to be carried out which the tenant is required to carry out by the terms of the tenancy agreement, but this only applies if the tenancy is for at least three years and neither the landlord nor the tenant can choose to end the tenancy within that period.

Who will this effect?

• A landowner offering employee tied accommodation.
• The Landlord of an Agricultural Holdings tenancy providing a farmhouse.
• An Agricultural Holdings tenant(s) who offers employee tied accommodation.
• An Agricultural Holdings tenant(s) who has permission to sub-lets their farm cottages.

What is the potential impact for Landowners, Landlords and Tenants?

It is important to get clarification on the position of the lease and any post lease agreements and if the tenant has permission to sub-let a property.

The Repairing Standard puts the onus for any work required on the landlord and it is not clear whether the Repairing Standard will take precedence over existing post- lease agreements that transfer responsibilities to the tenant, or who will be responsible for any work that is required as a result of the tenant’s failure to maintain.

It should also be considered how these works will be dealt with at rent review. Scottish Land & Estates has suggested that the tenant be responsible for meeting the Repairing Standard with costs considered at waygo.

How to prepare for the upcoming changes to repairing standards for Agricultural Holdings

It is important to prepare now for this change to legislation so that the landlord and tenant are aware of their obligations. FBR Seed provide advice and support on matters affecting Agricultural Holdings Act tenancies. For further information please contact our agricultural tenancy experts via reception@fbrseed.com or calling 01573 224381.