Proposed changes to agricultural tenancy law have been welcomed by our land agents.

The Public Services Reform (Agricultural Holdings) (Scotland) Order 2011 passed its second to last hurdle yesterday (March 9, 2011) when it was approved by the Rural Affairs and Environment Committee. The proposed measures, set to change the Agricultural Holdings (Scotland) Act 2003, should be put before the Scottish Parliament before the end of the current term.

Andrew Aitchison, partner in charge of land management at Strutt & Parker's Edinburgh office, said: "This Order will introduce long awaited and much needed amendments to current agricultural holdings law.

"Significantly, it will mean that landowners and tenants can now agree fixed term lets and lease extensions of between five and 10 years which the industry has been crying out for since the new Short and Limited Duration Tenancies were introduced back in 2003. By requiring parties to agree the purpose of let and the fixed equipment required, it will also help reduce concerns amongst landowners about letting bare and partially equipped land."

"Additionally, it clarifies the procedures relating to full repairing maintenance agreements and the process for initiating rent reviews.

"Strutt & Parker, along with industry stakeholders and particularly the Tenant Farming Forum which led the way on this reform, welcomes the committee's approval of the order as a patch for some of the farming industry's problems.

"While the proposed reforms will remove some of the most significant obstacles and impediments to letting land created by the 2003 Act, this remains a very complex area of law which remains in need of further consolidation."