Decision

There are confidential appendices to this report, which are exempt by virtue of paragraph 3 of Schedule 12A of Part 1 of Schedule 12a of the Local Government Act 1972 because they contain information relating to the financial or business affairs of any particular person (including the authority holding that information)

Surrender of Agricultural Holdings Act 1986 Tenancy (AHA) and letting on new Farm Business Tenancy (FBT).

Reasons for the decision

The terms of the letting are in line with the market. The proposed letting will generate a revenue to support delivery of the Council’s services and meeting the Council’s obligations under Section 123 of the Local Government Act 197

Alternative options considered

Seek vacant possession and let on the open market
Benefit: May secure a greater rental or more favourable terms
Disbenefit: New tenant would be an unknown quantity
No guarantee that the property would be re-let
Significant capital works would be required to get the property to a suitable condition to let on the open market

Leave current tenancy in place with current tenant
Benefit: N/A
Disbenefit: Existing rent under the AHA limited to earning capacity of the holding, therefore below market
value
Limited ability to take the holding back in hand under AHA if required