CKD Galbraith announces settlement
of landmark agricultural rent review case

CKD Galbraith has been instrumental in the settlement of a landmark agricultural rent review case, writes Chris Addison-Scott.

The case, which was due to be heard before the Scottish Land Court, was regarded as one with potentially major significance for both landlords and tenants.

CKD Galbraith's client, a Fife based landlord, was faced with a farm rent review under the Agricultural Holdings (Scotland) Act 2003.

The case was of special significance because the agents acting on behalf of the tenants argued for a rent reduction of 35% over the passing rent on the premise that the Single Farm Payment (a subsidy paid directly to farmers in respect of their occupation of land as opposed to a production subsidy) was a tenant's improvement and should be wholly discounted from the basis on which rent is calculated at review. Had this argument succeeded, the implication for landlords would have been very serious as Single Farm Payments comprise a substantial part of net farm income.

CKD Galbraith, acting on behalf of the landlords, argued that the rent should be increased. Using our access to rental information across Scotland, we were able to provide evidence relating to rents agreed on review on traditionally let farms as well as rent achieved for new lettings under Limited Duration Tenancies and Short Limited Duration Tenancies. The weight of this evidence ultimately led to the rent review being settled by negotiation and resulting in a 16% increase over the passing rent.

Although this case did not reach the Land Court, it sets an important precedent. The tenants had been supported by Scottish Tenant Farmers Association but were unable to produce either factual information that the Single Farm Payment should be treated as a tenant's improvement or relevant rental evidence to support their case for a rent reduction. Consequently, they ultimately came to realise that they did not have a case that they felt they could argue in the Land Court, preferring to settle at an increased rent by negotiation.

For further information: Chris Addison-Scott 0141 953 3070 or email: chris.addison-scott@ckdgalbraith.co.uk

Fishing with compliments

CKD Galbraith has teamed up for the second year running with commercial Property Week magazine to invite its readers to compete for a three-night stay with two days fishing on one of the Scottish Highlands' best sporting estates.

Two prizes, worth several thousand pounds, are a short break for two at Syre Lodge with salmon fishing on the world famous River Naver in Sutherland. The winners will be guests of CKD Galbraith, arriving on Thursday 17 th August, fish Friday and Saturday, departing after breakfast on Sunday.

The prize includes all accommodation, meals, wines and spirits, and salmon fishing for two with a personal 'ghillie'. Fishing tackle and tuition will be provided for the novice.

All you have to do is answer the following question.

In the name CKD Galbraith you will find letters to form two words, one meaning Scotland and the other rugged rock. What are they?

YOU CAN ENTER IN TWO WAYS:

• By sending the answer to the question, your name, company name, position held, telephone number and business email address to: competition@ckdgalbraith.co.uk
• By entering online at: www.commercial-property-scotland.co.uk/competition.html

Competition entries must be received by no later than midnight on 14 July 2006.

The competition winner will be picked by CKD Galbraith.

To read previous newsletters from CKD Galbraith please click here.

CKD Galbraith is one of Scotland’s leading independent property consultancies, offering a full range of services across the residential, commercial and rural property sectors.

We are a national firm offering unrivalled local knowledge through our offices in Edinburgh, Glasgow, Perth, Cupar, Inverness, Aberfeldy and Ayr and an associate firm in London.

Specialising in quality property and serving the needs of private clients, our consultants have long-established reputations for providing outstanding personal service in many areas including; estate agency, commercial property, rural estate sales and management, building surveying, architectural and building services, holiday cottages and homes, and sporting holidays.

Services include:

For more information please visit www.ckdgalbraith.co.uk