NFUS has welcomed the publication of Scottish Government’s much-anticipated rent review report.

The report, which is the latest step in producing a new method of calculating rents for 1991 Act tenancies, is the latest piece of work completed in relation to agricultural holdings.  The concept of basing rents on productive capacity was introduced by the Land Reform Act in 2016, with the hope of providing greater transparency in agricultural rents for 1991 tenancies.

The report will now be considered by NFU Scotland’s Tenants Working Group and Tenancy Working Group.

NFUS President Andrew McCornick said: “I am pleased that this much-anticipated report has been published.  

“The contractor has carried out a thorough piece of work, but it is still some way from providing a final solution in calculating productive capacity for 1991 Act tenancies. I want both tenants and landlords to be clear that, in our opinion, further discussion and work in relation to this subject is needed before it will be the complete article.

“The contractors have looked at a number of methods of calculating the rent. In doing so, several issues have come to the fore, which will require further thought.

“Some well used methods, such as how tenant’s improvements are accounted for through the so-called ‘black patch’ approach, have been recognised as appropriate, whilst other components, such as standard labour figures, have been singled out as requiring an update.

“Further discussion is also needed around the treatment of surplus residential accommodation, and I expect there to be some debate around farmhouses given wider pressures in relation to this.

“NFUS has already convened meetings of its working Groups, and we will be meeting with Scottish Government imminently to discuss further.”  

Notes to Editors

• For agricultural holdings, the Land Reform (Scotland) Act 2016 requires the assessing of a fair, sustainable rent for both landlord and tenant. The report – Testing of the Rent Review System - has researched ways of achieving this in ways that minimise the need for cases to progress to the Land Court. It includes recommendations on how this can be achieved.  It can be read at: http://www.gov.scot/Publications/2018/01/5770

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Contact Bob Carruth on 0131 472 4006