SEBG News
Landlord tenant relationships the main topic of SRPBA and SEBG discussions with Minister
29th March 2006Representatives of the Scottish Estates Business Group (SEBG) and Scottish Rural Property and Business Association (SRPBA) met Rural Development and Environment Minister Ross Finnie MSP today (Wednesday march 29) to discuss landlord-tenant relationships.
The meeting was attended by Roddy Jackson Deputy Chairman, Sandy Lewis, Executive Committee member, Polly McPherson, Director of Research and Communications, SEBG, and Robert Balfour and Jackie McCreery, Legal Adviser, SRPBA.
Discussions focused on the spread and suitability of those limited partnership arrangements which are running on a year to year basis after the expiry of the initial fixed term. The group highlighted to the Minister that there may be various sound reasons for their use, from both tenant and landlord point of view. In addition, it must be borne in mind that changes brought about by the Agricultural Holdings (Scotland) Act 2003 mean the tenant has a minimum notice period of between 2 and 3 years before these arrangements can be brought to an end.
SRPBA and SEBG were keen to stress that where appropriate to the needs of both landlord an tenant, limited partnerships are steadily being converted into new letting vehicles under the 2003 Act. Early dialogue between tenants and landlords is encouraged by both organisations so that tenants and land owners can come to mutually beneficial arrangements.
The meeting also covered discussion on the uptake of new tenancy vehicles, which both organisations feel is encouraging, as well as how landlord registration under the Antisocial Behaviour etc (Scotland) Act is affecting farm tenancies. The potential for disruption in the sector through the impending extension of crofting areas to other parts of Scotland was also highlighted to the Minister. SRPBA and SEBG emphasised that for all those attempting to create stability in the sector following the 2003 Act, the Crofting Reform Bill is raising the question of whether the absolute right to buy is genuinely off the political agenda, even if it no longer appears to be a priority of any of the tenant representative bodies themselves.
Robert Balfour said:
"A random survey that we have undertaken across a sample of the SRPBA membership suggests that the use of short term limited partnerships is not widespread, that generally tenants are not raising concerns where they are in place, and that they are being converted into new 2003 Act tenancies when suitable opportunities arise. It has been useful to have had this opportunity to present our view to the Minister."
Roddy Jackson, SEBG deputy chairman, said: "Our group is wholly committed to constructive landlord-tenant relationships. The 2003 Act introduced new letting vehicles together with a number of other changes to existing tenancy law. Despite the inevitable uncertainty caused by such changes it is encouraging to see landlords and tenants entering into the new arrangements with very welcome evidence of a significant number of long duration tenancies over 15 years. Despite the concern over farming returns in the wake of CAP reform I am sure there will continue to be demand from farmers wishing to rent land and landlords wishing to offer tenancies in the future. "
Notes to editors:
A sample survey of 57 members of SRPBA revealed that out of 140 Limited
Partnerships (LPs) in operation there were 98 operating on fixed terms
longer than a year. 24 LPs had been or are being converted to SLDTs and
28 to LDTs . On 24 estates there was an intention by landlords to convert
existing LPs to SLDTs or LDTs at the earliest opportunity.
