3 Security of Tenure and Rent Control
11.54 As we have seen, the assured agricultural occupancy is a variant of the assured tenancy provided for in Pt I of the Housing Act 1988. The general provisions applicable to assured tenancies apply, also, to assured agricultural occupancies.
Protection is assured for agricultural occupants by conferring on the occupier a statutory periodic tenancy, but varying its terms and the grounds for possession to confer special protection.Statutory periodic tenancy
11.55 On termination of the original license132 or tenancy, a ‘statutory periodic tenancy’ arises.133 By virtue of s 5(3) of the 1988 Act this takes effect in possession immediately on the coming to an end of the former tenancy, and subject to the same terms as those of the former tenancy. If the occupancy was pursuant to a periodic tenancy, rather than a fixed term, the tenancy cannot be brought to an end by the landlord except by obtaining a court order.134
11.56 Prima facie, if the former tenancy was a fixed term the periods of tenancy will be the same as those for which rent was last payable.135 Clearly, however, no rent will have been payable under many agricultural occupancies. The 1988 Act136 therefore provides that, in this event, the periods of tenancy shall be monthly, beginning on the day following the expiry or termination of the license or tenancy. It is an implied term of every periodic assured tenancy that, except with the landlord’s consent, the tenant will not assign the tenancy, or sublet, or part with possession of, the whole or part of the dwelling.137 This will be implied in all statutory periodic tenancies, but will not be implied into a fixed term, or where a premium is paid on grant. It is not an incident of the implied covenant that the landlord have to establish the reasonableness of any refusal of consent to assign etc.138 There is also an implied term in every assured tenancy that the tenant shall afford access to the landlord, and all reasonable facilities, for executing repairs.139
Control of rent
11.57 One of the characteristics of ‘assured’ occupancies, when compared with ‘protected’ occupancies under the 1976 Act, is the absence of rent control on fair rent principles.
The 1988 Act places no restriction on the rent which may be agreed between the parties at the outset. Section 13 provides, however, a procedure by which proposed rent increases can be controlled once a statutory periodic tenancy has arisen, or where a periodic tenancy itself has no rent review clause. The rent control provisions have no application in the case of a fixed term, or in the case of a periodic tenancy which has an express rent review clause.14011.58 To obtain an increase in rent, the landlord must serve a notice of increase, to take effect at the beginning of a new period of tenancy.141 The latter must be a date not earlier than the first anniversary of the commencement of the tenancy, except where a statutory periodic tenancy has arisen on determination of a fixed term.142 There is also a requirement that notice of increase be of at least the ‘minimum period’ prescribed by the Act – six months in the case of a yearly tenancy, one month in the case of a tenancy of less than a month, and the period of tenancy in any other case.143 The proposed date for rent increase must also be not less than 12 months from the date on which the last increase of rent took effect.144 The tenant can refer a proposed rent increase to the Lower Tier Tribunal (England) or Rent Assessment Committee (Wales) for adjudication at any time before it comes into effect.145 In default of reference, the rent proposed takes effect on the date proposed in the landlord’s notice of increase.146
11.59 It should be appreciated that the rent control procedure applies only where the landlord seeks an increase – it is not open to the tenant to seek a reduction in rent, unless the landlord has served a notice of increase. In many cases, an assured agricultural occupant will have paid no rent during his period of employment. The 1988 Act enables the landlord to increase the rent to a free market level by notice of increase.
There are, moreover, no provisions for the phasing of rent increases analogous to those previously available under the Rent (Agriculture) Act 1976. The only saving provision is s 14(7), which enables the committee to delay implementation of a rent increase, following adjudication, where it would cause ‘undue hardship’ if it came into effect on the date proposed in the landlord’s notice of increase.Grounds for possession147
11.60 By virtue of s 7(1) of the 1988 Act, the court cannot grant an order for possession of a dwelling house let on an assured tenancy unless one or more of the grounds set out in Sch 2 are satisfied. All the grounds for possession in Sch 2 to the 1988 Act apply, as to other assured tenancies, with the one important exception that Ground 16 (viz repossession on cesser of employment) does not apply.148 As the aim of the Act is to prevent arbitrary eviction of agricultural workers from tied cottages upon termination of employment, this exception is of the first importance.
11.61 Most landlords will wish to seek possession after terminating the occupier’s employment, and the availability of Ground 16 would thus remove any security of tenure whatsoever from tied accommodation. Note, however, that Ground 16 is excluded only while the agricultural occupancy lasts. If the agricultural worker condition ceases to be fulfilled, the statutory periodic tenancy ceases to be an ‘assured agricultural occupancy’. At this point Ground 16 will come back in, enabling the landlord to claim that the dwelling was let to the occupant by virtue of his employment and that he has ceased to be so employed. Ground 16 is discretionary, it will be recalled, and not mandatory. Notice given to terminate employment, if given by a tenant under an assured agricultural occupancy, does not constitute notice to quit and his security is not thereby prejudiced.149 An actual notice to quit, however, does have effect to terminate the occupancy.150 This provision preserves the tenant’s right to terminate the occupancy voluntarily, in which event the security of tenure provisions are inapplicable.
11.62 The normal common law requirements for a valid and effective notice to quit will apply.