The Scottish Tenant Farmers Association (STFA) will be calling on the Scottish Government to establish mandatory and robust codes of practice for rent reviews in the Land Reform Bill. According to the STFA, the move follows evidence that the existence of an interim tenant farming adviser, guidelines for good practice and cross-industry agreement on rent initiatives are all having little effect on the behaviour of some landlords and land agents.
The STFA claims that regardless of falling farm incomes and gloomy predictions for agriculture there has been a spate of rent reviews this autumn, as many landlords try to hike up rents in advance of changes to the rent review system expected in the Land Reform Bill. An equally large number of rent notices appear to have been served for next year and the STFA believes this trend is likely to be repeated at the next round of reviews in May.
Commenting on the situation, STFA chairman Christopher Nicholson said: "It has widely been recognised that there is no justification for rents rising in the current economic climate as incomes steadily decline. So, it is totally unacceptable that some land agents are insisting on substantial rises despite cross-industry agreement that rents should be kept to sensible levels.
"In the current economic and political climate we had expected to see rents settled in good time and it is surprising to hear that the Land Court have had as many as 15 cases referred to in this "term" date. Tenants attending STFA meetings have expressed extreme concern at the way in which many rent reviews have been conducted and the pressure being exerted to coerce tenants into agreeing unacceptable rent increases."
Lord David Johnstone, chairman of Scottish Land & Estates (SL&E), the organisation representing the interests of landlords, hit back saying: "There is no evidence that landlords are trying to increase rents ahead of the Land Reform Bill being passed by the Scottish Parliament, and it is regrettable that the STFA appears to be making such ill-founded accusations - without providing evidence to support its claims - in what appears to be a clear attempt to influence the parliamentary process. We need evidence not speculation at a time when the Scottish Parliament is deliberating complex agricultural legislation which includes rent reviews.
"It is not uncommon for cases to be referred to the Land Court for determination. However, it is more often than not a holding exercise allowing discussions on the rent to continue and many cases are resolved without a hearing. This procedure is recognised in the Joint Industry Guidance on rent reviews."
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