ABSTRACT
The Agricultural Holdings Act 1986 specifies the circumstances and the measure of compensation that is to be paid to a tenant by his landlord, on the termination of the tenancy, for certain improvements carried out by the tenant. Two matters deserve special consideration in relation to agricultural land. In determining the amount of compensation for severance and injurious affection, it can be assumed that the tenant has security of tenure, unless there is evidence that an effective notice to quit could be served on the tenant in respect of the retained land. If compensation cannot, therefore, be assessed on the basis that the tenant has security of tenure, because the landlord could serve an effective notice to quit, a careful calculation must be made to ensure he is worse off after the deduction of the reorganisation payment. The value of land taken is assessed by applying rule; comparable property sales will be important in determining the market value.
