Prepare carefully for rent review urges NFU

NFU logo for press releases

Wednesday, 24, Sep 2008 12:00

The NFU is urging members to prepare carefully for the Michaelmas rent review with the traditional cut-off date for landlords to appoint an arbitrator fast approaching.

For those still to resolve the rent for the coming three years, the message to farmers as part of their forward planning is - make sure budgets are calculated correctly, all matters are accounted for and that you get the appropriate advice.

The warning comes in a bid to avoid mistakes being made. In one example a landlord’s agent inadvertently included a tenant’s improvement within the rent calculation which can affect the rental value significantly.

The NFU’s Legal Assistance Scheme ‘Tenants First Advice Service’ provides help with budgets and has proved very successful, with many members reporting how useful they found the scheme.

NFU Deputy President Meurig Raymond said: “For tenants facing a rent review this year there has rarely been a trickier time. We are faced with annual agricultural input inflation above 35 per cent, one of the worst harvests in recent memory and volatility across the board in terms of returns.

“This year’s rent settlements must reflect the uncertainty that farming businesses face, with many needing increased capitalisation, as well as long overdue re-investment. On the occasions where there is a rent increase agreed, I would expect it might be appropriate to see landlords making some investment in their farm, something that’s been lacking for several years.

“We welcome the news from some landlords that they are deciding to leave rents alone this autumn following the service of rent review notices last year. This is the right long term approach to secure a sustainable business for the future.”

Notes to editors:

1. The cut off date for landlords to appoint an arbitrator is for landlords to appoint an arbitrator September 29.

NFU, Agriculture House, Stoneleigh Park, Stoneleigh, Warwickshire, CV8 2TZ

Press Officer: Mike Thomas

Telephone: 024 7685 8686 FAX: 024 7685 8651 ISDN: 02476 416289

Http://www.nfuonline.com

The NFU champions British farming and provides professional representation and services to its farmer and grower members.