Compensation for agricultural tenants

This content applies to Scotland only.

Housing laws vary between Scotland and England. Get advice relating to England

When you leave an agricultural tenancy, you should receive compensation for any improvements you have made to the land. This applies regardless of whether you give your landlord notice or your landlord asks you to leave. In some circumstances, you may be entitled to additional compensation for disturbance. If you have allowed the holding to deteriorate, you may have to pay your landlord compensation.

Unless otherwise stated, this page applies to agricultural tenants with limited duration, short limited duration and 1991 Act tenancies.

The law on compensation is complicated, so get legal advice from a solicitor who specialises in agricultural law to make sure you get everything you're entitled to. You can find a solicitor at the Law Society of Scotland website.

Compensation for improvements

If you have carried out improvements to the land, you should be paid compensation for this work when your tenancy ends. This may apply even if you have been evicted for non-payment of rent. However, if required, you must have given your landlord notice or received their permission for the work in order to get the compensation. The page on repairs and improvements has more information on this.

Compensation for disturbance

1991 Act tenants may be entitled to compensation for disturbance if their landlord sends them a notice to quit and they have to leave the tenancy. Limited duration and short limited duration tenants will only be entitled to compensation for disturbance if their land is resumed by the landlord to use for a non-agricultural purpose.

Sum for the reorganisation of your affairs

If you are a 1991 Act tenant and are entitled to compensation for disturbance, you may also be able to get a sum of money to compensate for the 'reorganisation of your affairs'.

Compensation for vacant possession

If your landlord wants to sell the land you rent with vacant possession (that is, without a tenant living there), they can ask you to give them notice to leave and then pay you compensation in return. However, your landlord can't force you to do this if you don't want to leave. Only 1991 Act tenants or tenants whose 1991 Act tenancy has been converted to an LDT are entitled to compensation for vacant possession.

Compensation for the landlord

In certain circumstances, you may have to pay compensation to your landlord when you leave.

If you're a 1991 Act tenant, you may have to pay your landlord compensation if:

  • you've allowed the holding to deteriorate while you've been renting it
  • you've not maintained or repaired fixed equipment you were responsible for
  • you've been using the land for non-agricultural purposes (such as tourism) and this has caused the land to lose value.

If you have a limited duration tenancy, you may have to pay your landlord compensation if you've been using the land for non-agricultural purposes (such as tourism) and this has caused the land to lose value.

How much will I get?

The rules governing compensation are complicated - however, your solicitor should be able to tell you whether you are entitled to compensation and how much you are likely to get.


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