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Do you want to be like Jimmy? - John Sones looks at opportunities to rent a smallholding and the types of tenancies
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IN this country, we have a tradition of wanting to own our own property. This is not always possible for several reasons the main one usually being financial. A large proportion of the population rent their homes so what about renting a smallholding?
Many people will be familiar with Jimmy Doherty through the series of TV programmes "Jimmy's Farm" and some may also have read his book "On The Farm". I found the whole series and the book both entertaining and also inspirational. He set out with no real knowledge of farming and struggled against all odds to build a viable business.
At the start of his book, he describes how he searched for a farm to rent originally starting in Devon but eventually travelling all over the UK. He had a mental idea of what he was looking for with the location being to him the most important factor. He goes on to describe his first visit to Pannington Hall farm in Suffolk where he met the owner surrounded by sights of years of neglect but could see the potential. I believe he started on a short lease but was later offered a much longer one when the owner saw the results of his and his friends work.
Finding a property to rent
Land owned by councils: A recent BBC "Countryfile" programme highlighted the decline in farmland owned by county councils. In the early part of the 20th Century, county councils bought land to halt the decline in farming and to provide an affordable way into the industry. Since 1974 there has been a decline from around 9,500 to 4,440 farms ( now around 250,000 acres) across England available to rent from councils of which about 3,000 are fully equipped with a house and buildings Last year 3,700 acres were sold across England for development displacing 130 farmers after negotiating the terms of their leaving. Areas like Oxfordshire no longer have any farmland available to rent. However, all is not lost as for example Gloucestershire takes a different view and is only selling off those that are not viable whilst investing in the remainder.
During a quick look at some websites, I found that Worcestershire County Council has 145 farms and smallholdings, Cheshire County Council also has 145 ranging from 40 to 165 acres and Powys has 188 tenancies of between 4 and 50 hectares. All these councils seemed to be in favour of continuing to let although unfortunately a tenancy does not become available very often.
Another possibility if you are only looking for land is that the local council may own an odd small field which might be available to be leased which may suit your purpose at least to get started. It is worth bearing in mind that structures like mobile shelters usually do not require planning permission (always check first!) so could be utilised and are also easily removed.
Renting privately: I saw this advert in a magazine recently: "Cottage to let. Idyllic surroundings, 4 bed room cottage plus 5 acres, stabling £550 per month. 12 months lease". This does show that even though few and far between, such opportunities do exist. You may have to be prepared to move some distance though and to wait a long time to obtain what you want.
I also looked at a website www.villageways. co.uk and that had a house and 20 acres available on a long lease in Gloucestershire. I expect that there are other sites that may also offer the occasional property.
Again as with council owned land, an owner may be willing to lease an odd field to get you started - you can only ask!
Types of tenancies
Assured Tenancy: Unless you already have one of these, it is very unlikely that you can obtain one because it gives you the right to remain in the property unless the landlord can prove to a court that he has grounds for possession. Therefore these are only suitable where the landlord has no intention of repossession.
Assured Shorthold Tenancy: These (as do Assured Tenancies) include accommodation and give the tenant the right to stay in the property for a minimum of six months and require the tenant to give a month's notice and the landlord two. Once the set period has finished, unless a new contract is drawn up, providing neither party gives notice, then it continues under the same terms and conditions under what is termed periodic. The landlord can, however, still give notice to increase the rent and can give notice to quit without having to give a reason why.
Deposits: The Housing Act 2004 changed the law regarding deposits. To reduce what the government perceived as some mismanagement of deposits, any landlord in England and Wales taking a deposit now must place that deposit in one of the Tenancy Deposit Schemes. There are two types: the Custodial and the Insurance-based. In either case, the landlord must inform the tenant within 14 days of what he has done with the deposit. If he fails to do so, it may have consequences for him when he seeks repossession. The idea of the schemes is that they provide arbitration between landlord and tenant if there is not agreement about how much deposit should be returned. There is, however, no obligation for the landlord to take a deposit and some may choose not to.
Grazing agreements: These can take various forms. Probably the simplest and the one with the least rights granted to the tenant is a short term licence which is outside the Landlord and Tenant Act and the Agricultural Tenancies Act. It gives consent to take what grows on the land rather than to occupy the land and will be for less than 12 months.
For a fixed period of two years or less, a short term grazing agreement may be used where the permitted purpose is restricted to the trade or business of grazing livestock owned by the tenant. The tenant accepts the fences etc as they are and neither party has an obligation to repair or maintain them. The rent is also preset. This is a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.
Under Scottish law, a similar tenancy can be granted but a grazing let cannot exceed 364 days.
Before signing any agreement, make sure you understand your and your landlord's rights and responsibilities and that it grants what you require for the period that you want.
Farm Business Tenancies: Farm Business tenancies were introduced by the Agricultural Tenancies Act 1995 and can be granted when at least part of the land to be let will be farmed for the purpose of a trade or business for the duration of the tenancy. If the agreement is set up correctly, it may allow future diversification. Any non-farming activity will require the landlord's consent.
If the agreement is for a fixed period of two years or less then the tenancy will end automatically at the end of the period agreed. No notice is required from either party.
If the agreement is for a fixed term over two years, to end the tenancy the landlord must give at least a year's notice otherwise it becomes an Annual Periodic.
Annual Periodic tenancies require a year's notice. There is no automatic right to renew a Farm Business Tenancy when it expires.
If you obtain a Farm Business Tenancy, make sure you are very clear about important things like rent reviews. It may be that there will not be a review or that the rent is regulated by a formula or periodic re-evaluation previously agreed. Legally, the landlord can still review the rent after 3 years if there is nothing in the tenancy about reviews. As regards fixtures and fittings, subject to certain exceptions any provided by the tenant remain their property and can be removed at the end of the tenancy. The tenant could, however, be liable for any damage caused in their removal.
If you take on a property in the state of the one that Jimmy did, you will have to carry out improvements to make it viable. The tenant is usually entitled to compensation for improvements carried out with the landlord's consent. Again the way in which this is calculated needs to be understood from the start. You can hardly remove a building's new roof and take it with you! However, if the Landlord has carried out the improvement on behalf of the tenant, no compensation would be payable.
Crofting in Scotland
Scotland has a system of usually rented small holdings of average size around 5 hectares known as Crofts and if you are a regular reader of "Smallholder" you will have seen these mentioned from time to time. The rent paid by the crofter is generally just for the land as the house and any outbuildings are provided by the crofter himself. Since a change in legislation in 1976, some crofters now own their croft outright but are required to live there. If they do not, they must find a tenant.
The first crofting act was passed in 1886 to give security of tenure to crofters. Other legislation has been passed since and the acts are administered by the Crofters Commission. Crofts will be found in the former counties of Shetland, Orkney, Sutherland, Ross-shire, Inverness-shire and Argyll.
Like other holdings for rent, few croft tenancies come onto the market. And if you are interested, you need to keep a check on the property sections of the appropriate local papers where they may be advertised. Another source may be through local solicitors and estate agents. It may also be an idea to contact local estates as they often own several crofts and one might just be available.
Crofters Commission: This is a government department which administers crofting and their consent is required for any change of tenancy outside the immediate family of the current tenant or for the re-let of a vacant croft. The Commission also runs an entrance scheme to help new entrants make a start and helps to link potential crofters with available crofts.
Their website is www.crofterscommission. org.uk which interestingly among other things, states that the law is being reviewed with the idea of introducing new powers to create new crofts. They are based at Castle Wynd, Inverness IV2 3EQ and can be contacted on 01463 663450.
Another source of information is the Scottish Crofting Foundation at Lochalsh Business Park, Auchtertyre, Kyle of Lochalsh, IV40 8EE, telephone 01599 566365. Their website is www.croftingfoundation.co.uk and they can be emailed at hq@crofting.org .
Conclusion
If your search for a suitable piece of land to rent with or without somewhere to live is unsuccessful, you may want to consider a job where house and land are provided. You would need to check out what you would be permitted to do on the land. The job may provide you with some much needed income as well.
Finally, be positive and determined. Jimmy has shown very publicly just what can be achieved with help and support. You may have to wait a long time and travel to many places but remember the old saying; "It all comes to him/her who waits"!
This article is written as guidance only and full enquiries should be made before committing to any legal agreement.
10:44am Wednesday 30th January 2008
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CommentPosted by: Ann Griffiths, West Wales on 6:01pm Wed 13 Feb 08
Hi, We would like to rent a council smallholding in Fishguard West Wales for my family of 5 or a few acres would do to keep chickens and grow our own veg and fruit. Thank You.
Hi, We would like to rent a council smallholding in Fishguard West Wales for my family of 5 or a few acres would do to keep chickens and grow our own veg and fruit. Thank You.
Posted by: sharon phillips, cardiff on 10:21am Mon 25 Feb 08
I would like to rent a smallholding in gloucestershire so i can start my buisness up how do i go by doing it
I would like to rent a smallholding in gloucestershire so i can start my buisness up how do i go by doing it
Posted by: Ann Griffiths, Fishguard on 7:59pm Thu 17 Jul 08
Still waiting for a place to rent, have had no response to my ad since February anyone out there with anything for rent. Thank You.
Still waiting for a place to rent, have had no response to my ad since February anyone out there with anything for rent. Thank You.
Posted by: Aaron Biszby, Manchester on 1:07pm Wed 10 Sep 08
I have been looking for a smallholding to rent anywhere!!! for the last two years and studying agriculture while waiting. could anyone help. thanks
I have been looking for a smallholding to rent anywhere!!! for the last two years and studying agriculture while waiting. could anyone help. thanks
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