Q&As

What is the appropriate type of lease for a garden centre or nursery? Is it a farm business tenancy or a Landlord and Tenant Act 1954 lease?

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Published on: 23 September 2021
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Section 38(1) of the Agricultural Tenancies Act 1995 (ATA 1995), confirms that ‘agriculture’ includes market gardens and nursery grounds, but note that, as a matter of common English, a market garden is a micro farm and not a garden centre and a nursery is essentially a breeding ground for plants from seed, rather than livestock. As a result, many ‘garden centres’ will not qualify as agricultural use if they are simply selling plants and other items which are bought in.

Note, also, that whether a tenancy is a farm business tenancy is not a matter of choice for the parties. They cannot opt into the regime (for example to avoid the security of tenure of Part II of the Landlord and Tenant Act 1954 (LTA 1954) for commercial lettings), nor can they opt out of it (for example, by contracting back into the Agricultural Holdings Act 1986 (AHA 1986)).

Background

A tenancy is a farm business

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Jurisdiction(s):
United Kingdom
Key definition:
Business tenancy definition
What does Business tenancy mean?

A tenancy regulated by the landlord and tenant Act 1954.

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