BPS value and rent

[Sid]

Been chatting to a young lad who is tendering for a grassland 5 year tenancy.

He's keen as mustard but is struggling with BPS values going forward.
I've suggested budget on a 15% reduction year on year for next 3 years until the rent review.
Between £70 and £80/ acre is what I came up with for a rental value.

What do the TFF collective think?

 

[Flat 10]

There’s a published plan of reductions which will be a good starting point

 

[Sid]

There’s a published plan of reductions which will be a good starting point

News - The Central Association for Agricultural Valuers

www.caav.org.uk

Is best I have found so far

 

[dairyrow]

According to our LL rents are going up. Been going around telling everyone for weeks. One of the neighbours asked by what percentage and he didn't know. Was upto the land agent.

 

[onthehoof]

According to our LL rents are going up. Been going around telling everyone for weeks. One of the neighbours asked by what percentage and he didn't know. Was upto the land agent.

 

[dairyrow]

Never dull is it being a tenant!!

 

[Sid]

Word is that Average rent was over £180/acre.


5 year tenancy.

 

[Adeptandy]

Rent review here this year called by the LL and I hear they are planning on 150 of us getting done this year across the estate

 

[Mixedupfarmer]

Rent review here this year called by the LL and I hear they are planning on 150 of us getting done this year across the estate

Perhaps they are planning rent reductions to help all the tenants after a rubbish cropping year, and with BPS rates dropping going forward

 

[Jon]

My Landlord has served us notice of a rent review.

I struggle to see how they could want more, with basic payment going.

 

[Mixedupfarmer]

My Landlord has served us notice of a rent review.

I struggle to see how they could want more, with basic payment going.

Me neither, poor yields of crops due to weather, no neonics so disastrous osr and beet, loss of ag chems, potato market collapse due to covid, bps going, brexit and uncertain trade next year. Bet they try though!

 

[Sid]

My Landlord has served us notice of a rent review.

I struggle to see how they could want more, with basic payment going.

Can they withdraw a rent review if they think rents may go down?

 

[Flat 10]

Rent review here this year called by the LL and I hear they are planning on 150 of us getting done this year across the estate

Now there are external agents involved it’s not going to be pretty

 

[Adeptandy]

Now there are external agents involved it’s not going to be pretty ☹

I didn't know that bit of info

 

[Gormers]

Can they withdraw a rent review if they think rents may go down?

yes l think they can...however the tenant can insist It still goes ahead as it is a legally binding document they have served.
If they won’t talk , arbitration is the next step

 

[Mixedupfarmer]

Now there are external agents involved it’s not going to be pretty ☹

Cheff?

 

[Flat 10]

Cheff?

No AFAIK

 

[Mixedupfarmer]

No AFAIK

Been told CJ

 

[Flat 10]

Been told CJ

Snap

 

[Jon]

Can they withdraw a rent review if they think rents may go down?

I think in reality it is just left to run to full term, and nothing acted on it.
I also think thay another cannot be served for two years afterwards, so I'm expecting a dust up, they wouldn't serve it unless they thought they could ask for more.