Annual Survey of Tenanted Land (Hansard, 12 March 1997)

Lord Lucas

The results of the Annual Survey of Tenanted Land were published today. Copies of a departmental statistical notice which gives a summary of the results of this survey have been placed in the Library of the House.

The first Annual Survey of Tenanted Land was carried out in October 1996 and replaces the previous Rent Enquiry. The new survey seeks details on rental agreements and on rents from a random sample of farmers who have rented agricultural land.

The survey indicates that in October 1996 the average rent paid for agricultural land in England was £116.99 per hectare. A total of 559 farm business tenancy agreements were recorded in the survey. That figure represents over 11 per cent. of all types of agreement; and in terms of the amount of let farmland recorded, farm business tenancies account for more than 7 per cent. of the agricultural rented area.

Although the Agricultural Tenancies Act came into operation on 1 September 1995, that is only a short time ago in farming terms. We are greatly encouraged by the interest shown in the new farm business tenancies. The survey results provide statistics on a wide range of types of agreement and illustrate that the flexibility available under the new legislation is already being used by the tenanted sector. Over 7 per cent. of farm business tenancy agreements in 29WA the survey sample were for five years duration or more, and a number of landlords had sufficient confidence to offer lettings for 25 years or more.

The new survey will be conducted each autumn. As well as collecting data on agricultural rents, it makes good the Government's commitment, given during the 30WA passage of the Agricultural Tenancies Bill, to monitor uptake of farm business tenancies.

In addition, an independent policy evaluation of the effect of the new legislation has been commissioned, and we intend to publish the results of that study later in the year.