Union welcomes rent review appointment

NFU Scotland has welcomed the appointment of a successful contractor to carry out work on behalf of the Scottish Government on the mechanics for a new rent review system for 1991 Act agricultural tenancies.

A consortium comprising of Savills, Hamish Lean, and Watson Bell have been announced as the successful tender. The new system of rents will be based on the productive capacity of what an agricultural holding can produce.  The work of the contractor will be to turn the rent framework laid down by the Land Reform (Scotland) Act 2016 into a practical rent review system.

Since the passing of the Act, NFU Scotland and other stakeholders have worked with Scottish Government on the new system for rent determination.  This appointment is a significant step forward in delivering a more transparent system for rents for 1991 Act agricultural tenancies. The Union will continue to work closely with the Scottish Government on this and other agricultural holdings issues.

President of NFU Scotland, Andrew McCornick commented: “Many NFU Scotland members are keenly awaiting news of progress about how rents are to be determined for secure tenancies.  It will be a relief to them that a suitable contractor has now been found for what we know is a very complicated piece of work.

“It is vital the new rent setting mechanism is fit for purpose, and provides landlords and tenants with a fair and transparent system which allows both parties to understand how the rent is determined. NFU Scotland looks forward to working with the contractors to deliver a transparent and fair rent setting mechanism.

“I have been concerned that there is some misunderstanding about when the new system will be in place, particularly from some NFU Scotland tenant members.

“It is important to note that until the new system is thoroughly tested, the current system of reviews will remain. As we understand, if the provisional timetable is adhered to, the first rent reviews under the new system will not be before 2019 at the earliest.  I urge rent discussions between now and then to bear this in mind and for all to adhere to good industry practice during rent reviews.” Ends

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