9 Residence clause
3.73 Modern agricultural tenancy agreements commonly include a covenant by the tenant to reside constantly at the farmhouse on the holding. The object of this clause is to procure such continuity of personal residence as will enable the tenant to supervise personally the farming operation on the holding, and to prevent the farming of the holding by an absentee tenant who lives elsewhere and farms through someone else.150 It creates an obligation not simply to make the farmhouse the usual place of residence of the tenant, but to live at the farmhouse with sufficient continuity to supervise personally the performance of all the tenant’s leasehold obligations, and particularly those relating to good husbandry.151 The obligation does not require unbroken residence at the farmhouse, eg it is assumed to be in the contemplation of the parties that the tenant may die, and suspension of personal occupation for a reasonable period consequent upon the death of the tenant will not be a breach of covenant.152 Absence for more than a temporary period will, however, constitute a breach eg where the tenant is in prison.153 Note, however, that breach of a residence covenant is remediable.
Whereas under the Agricultural Holdings Act 1986 the proper remedy for breach would lie in service of a notice to remedy and proceedings under Case D,154 under a farm business tenancy it will ground forfeiture proceedings under the general law following service of notice under s 146, Law of Property Act 1925. The rules governing forfeiture proceedings, and the tenant’s right to relief against forfeiture, are considered in Chapter 4 below.155