NEWS that the Scottish Government has appointed a contractor to conduct rent modelling work for the new rent test being applied to 1991 tenancies and available to Limited Duration Tenancies has been welcomed by both NFU Scotland and the Scottish Tenant Farmers Association.

A consortium comprising of Savills, Hamish Lean, and Watson Bell have been announced as the successful tender, who will produce a new system of rents based on the productive capacity of agricultural holdings, turning the rent framework laid down by the Land Reform (Scotland) Act 2016 into a practical rent review system.

NFUS president, Andrew McCornick said: “Many NFUS members are keenly awaiting news of progress about how rents are to be determined for secure tenancies. It will be a relief to them that a suitable contractor has now been found for what we know is a very complicated piece of work.

“It is vital the new rent setting mechanism is fit for purpose, and provides landlords and tenants with a fair and transparent system which allows both parties to understand how the rent is determined. NFUS looks forward to working with the contractors to deliver a transparent and fair rent setting mechanism.

“I have been concerned that there is some misunderstanding about when the new system will be in place, particularly from some NFU Scotland tenant members," he added. “It is important to note that until the new system is thoroughly tested, the current system of reviews will remain. As we understand, if the provisional timetable is adhered to, the first rent reviews under the new system will not be before 2019 at the earliest.

"I urge rent discussions between now and then to bear this in mind and for all to adhere to good industry practice during rent reviews.”

With a lot of work having been done on a new system for rent determination, the appointment is being seen as a step forward in delivering a more transparent system for rents for 1991 Act agricultural tenancies.