Renters’ Rights Bill 2024 – impact on agricultural tenants

The Renters’ Rights Bill 2024 (Bill) is going to create one of the biggest upheavals to residential lettings in the last 30 years. We summarise below, how the Bill will impact a landlord’s ability to regain possession of residential properties let to agricultural workers.

What are the current rules?

Currently, an agricultural worker may have an Assured Agricultural Occupancy (AAO) if they meet the agricultural worker condition set out in Schedule 3 of the Housing Act 1988 and their landlord did not opt-out before the tenancy started.  This gives them greater protection than a non-agricultural tenant would have under the Housing Act 1988 (HA 1988) in relation to grounds for eviction and level of rent that may be charged.

The protected status of someone with an AAO means their tenancy does not end if they cease to work in agriculture and, on their death and if certain criteria are met, a surviving relative living with them may be able to benefit from the original tenant’s agricultural worker rights to remain in the property for their lifetime. A landlord can only end an AAO if certain grounds can be met.

If the landlord successfully opted out before the tenancy was granted, instead of an AAO, the tenant will have an Assured Shorthold Tenancy (AST). This, as stated above, provides the tenant with much less protection. At the moment, 2 months’ notice to quit may be given to the tenant by the landlord at any time after expiry of the first six months of a tenancy’s term by serving what is known as a section 21 “no fault eviction” notice.

What changes are planned under the Renters’ Rights Bill?

The Bill still makes provision for AAOs.

As with the current system landlords have the ability to opt out of before the tenancy is granted. A condition of opting out would be that the new tenancy is not a continuation of an existing occupancy. If no valid opt-out notice is given in the prescribed form before the tenancy commences then a qualifying tenant would still have enhanced protection as an AAO.

After the Bill is passed, if the landlord successfully opts out, the tenant will no longer have an AST as they are being abolished. Instead the tenancy created will be an assured periodic tenancy, which will continue until the tenant terminates it (which they can do at any time after it is granted by giving 2 months’ notice). The section 21 “no fault eviction” notice is being abolished as well. However, amongst other grounds, an agricultural landlord will be able to claim possession under the Bill in the following circumstances:

• Where the property is needed for an agricultural worker employed by the landlord (2 months’ notice)
• Where an agricultural headlease, which includes the worker’s house, comes to an end (4 months’ notice),
• Where the worker is no longer employed by the landlord and the housing had been supplied during the course of their employment (2 months’ notice)

To regain possession a landlord will need to prove one of these statutory grounds for possession. In general, most statutory grounds for possession under the Bill now require 4 months’ notice to be given. However, as detailed above, some of the grounds applicable to agricultural workers will still only require 2 months’ notice.

In short, as with the current systems, landlords will need to adhere to the correct opt-out procedure before the start of the tenancy if they want to be able to benefit from the new grounds for eviction and avoid tenants gaining any enhanced protection. If you have any questions, please contact us.