ARBITRATION ON TERMS OF NEW TENANCY

HC Deb 19 October 1976 vol 917 cc1233-4

Lords amendment: No. 18, in page 31, line 1, leave out from beginning to end of line 14 and insert: (4) On a reference under subsection (3) above the arbitrator—

1. (a) where question (a) is so referred (with or without question (b))—
1. (i) shall determine what variations, if any, in the terms mentioned in that question are justifiable as there mentioned; and
2. (ii) without prejudice to the preceding sub-paragraph, shall include in his award such provisions, if any, as are necessary for entitling the landlord to recover from the tenant under those terms a sum equal to so much as is in all the circumstances fair and reasonable of the aggregate amount of the compensation mentioned in subsection (4A) (a) below, and for entitling the tenant to recover from the landlord under those terms a sum equal to so much as is in all the circumstances fair and reasonable of the aggregate amount of the compensation mentioned in subsection (4A)(b) below,

and shall accordingly, with effect from the relevant time, vary those terms in accordance with his determination, or direct that they are to remain unchanged;

1. (b) if, where question (a) but not question (b) is so referred, it appears to him that by reason of any provision included in his award under paragraph (a) above (not being a provision of a kind mentioned in sub-paragraph (ii) of that paragraph) it is equitable that the rent of the holding should he varied, may vary the rent accordingly with effect from the relevant time;
2. (c) where question (b) is so referred (with or without question (a)),"

Mr. Strang

I beg to move, That this House doth agree with the Lords in the said amendment.

Mr. Speaker

With this, we may discuss Lords Amendment No. 19, in page 31, line 23, at end insert— (4A) The compensation referred to in subsection (4)(a)(ii) above is—

1. (a) the compensation paid or payable by the landlord, whether under the 1948 Act or under agreement or custom, on the termination of the deceased's tenancy of the holding;
2. (b) the compensation paid or payable to the landlord, whether under the 1948 Act or under agreement, on that termination in respect of any such dilapidation or deterioration of, or damage to, any part of the holding or anything in or on the holding as the tenant is or will be liable 1234 to make good under the terms of his tenancy."

Mr. Strang

These Government amendments were made in response to strong pressure at the Committee stage in another place and after consultation with the Country Landowners' Association and the National Farmers' Union.

I should explain that at the end of a tenancy of an agricultural holding the tenant can claim compensation from his landlord for various matters as laid down in the Agricultural Holdings Act. The claim will include such matters as tenant's improvements, for example buildings, cultivations and unexhausted manurial values. Offset against this is the landlord's claim for dilapidations, for example, for breaches of the tenancy agreement. Examples under this heading would be uncleaned ditches, interior decorations to buildings and foul land. This is the outgoing valuation.

At present, when a new tenant enters into occupation of the holding he pays to his landlord, as ingoing, the compensation for tenant right matters which has been paid by the landlord to the out-goer. This obligation is by contract though and not by statute, and can no longer apply when the family succession scheme comes into effect.

It was never our intention that the family succession provisions should interfere with this normal flow of in-going and outgoing payments between landlords and tenants and we had not previously realised that problems might arise.

I do not think that it is necessary to explain the amendments in detail. I do not expect that they will arouse much passion.

Question put and agreed to.

Subsequent Lords amendment agreed to.