As the Renters’ Rights Bill proceeds through Parliament, this is the seventh of ten articles we are publishing looking at the proposed changes.  The article addresses reform of the English private rented sector only.  Links to the articles already published are at the end of this article. The next article will address rent review. 

At the moment, agricultural workers are in a special position as far as housing is concerned - if they are housed by their employer they have enhanced protection as assured agricultural occupiers unless their landlord opts-out before the start of their tenancy.  

If the landlord opts-out, then no fault notice can be given to terminate the tenancy when employment comes to an end.  The Bill makes some changes to the current position when tenancies are opted-out. 

What does the Bill do? 

• Agricultural workers will continue to enjoy enhanced protection as assured agricultural occupants unless landlords opt-out before the tenant goes into occupation of the property. 
• For opted-out tenancies, the Bill abolishes no fault notice.  All termination notices will need to cite specific grounds for termination.   This makes the distinction between what the tenant gets if the landlord opts-out versus what the tenant would otherwise get much less stark than at present. 
• The Bill contains new grounds for termination which are only available if a tenancy to an agricultural employee has been opted-out appropriately.  The new grounds enable:
  • termination of a residential subtenancy when an agricultural headlease (if there is a Farm Business Tenancy or Agricultural Holdings Act 1986 tenancy over the whole farm including the worker's house) comes to an end
  • possession on the basis the property is needed to house an agricultural worker employed by the landlord
  • termination if the housing was supplied to the worker due to their employment by the landlord and the worker has ceased to be employed by the landlord.

What’s the key takeaway? 

Landlords who want to avoid giving enhanced protection to their agricultural workers will still need to opt-out prior to the start of the tenancy.  

Making a conscious choice as to whether to opt-out or not remains very important.  The Bill contains new grounds for termination which minimise the impact of the Bill on agricultural landlords but are only available if a tenancy to an agricultural employee has been opted-out appropriately.  The new grounds offer agricultural landowners more flexibility than many other landowners.  

Items in this series:

Renters' Rights Bill 1: Residential tenancy changes proposed by the Bill, Maddie Dunn

Renters' Rights Bill 2: How to obtain possession if section 21 notices are abolished? Maddie Dunn

Renters’ Rights Bill 3: Children, Benefits and Pets, Maddie Dunn

Renters’ Rights Bill 4: Enforcement, Maddie Dunn

Renters' Rights Bill 5: Succession, Maddie Dunn

Renters' Rights Bill 6: Employee Accommodation, Maddie Dunn

Up next: Rent Review