Agricultural Ties – A Useful Curse? 

The provision of agricultural/rural worker’s dwellings in the countryside to serve a business and meet a proven essential need are one of the few ways that residential planning can be gained in the countryside.

Planning approvals for agricultural/rural worker’s dwellings will only be permitted subject to an agricultural occupancy condition which usually reads “The occupation of the dwelling hereby approved shall be limited to a person solely or mainly employed or last employed in the locality in agriculture as defined in Section 336 of the Town and Country Planning Act 1990 or in forestry or a widow or widower of such a person (including any dependents of any such person residing with them).

Section 336 of the Town and Country Planning Act 1990 defines agriculture as being:

  • ‘horticulture, fruit growing, seed growing, dairy farming;
  • the breeding and keeping of livestock (including any creature kept for the production of food, wool, skins or fur, or for the purpose of its use in the farming of land);
  • the use of land as grazing land, meadow land, osier land, market gardens or nursery grounds; and
  • the use of land for woodlands where that use is ancillary to the farming of land for other agricultural purposes.’

So, if you are solely, mainly or lastly employed in agriculture in one of the forms detailed in Section 336, you can meet the agricultural occupancy condition and therefore live happily ever after.

Sometimes agricultural occupancy conditions (AOCs) are described as “agricultural ties” but in most cases these just comprise the agricultural condition as detailed above – there are only very, very few cases where Local Planning Authorities deem it necessary to actually tie the new dwelling to agricultural land or the farm holding.

However, sometimes if circumstances change where a farm business ceases or dwelling that have had agricultural occupancy conditions placed on them in years gone by, the occupancy condition can be somewhat of a nuisance and not only restrict the occupancy but also restrict values.

An agricultural occupancy condition would normally reduce the value of a property by around 25-30% but it could be less or virtually nothing if the property has land with it and therefore makes it easier for somebody to comply with the occupancy condition.

We are frequently asked how to “get rid of” an agricultural occupancy condition, not only because of the value and the restriction on occupancy but also because most high street lenders will not mortgage properties with an AOC – you would have to get some kind of business or agricultural finance which is often more expensive.

There are generally 3 ways that an agricultural occupancy condition can be dealt with:

  • firstly, we would check if the dwelling built has been constructed in accordance with the approved plans, as if not it may mean whilst the property is unlawful, we can argue that there is no agricultural occupancy condition there at all;
  • secondly, if the property has been occupied by persons not complying with the AOC for in excess of 10 years, a Certificate of Lawful Use can be gained; or
  • thirdly, the usual route detailed in most Local Planning Authority’s policies is to market the property at a price that reflects its value (with the 25-30% reduction) for a period of up to 12 months.  If there is no demand from people who comply with the occupancy condition, it can therefore be argued that the occupancy condition has passed its useful life and the current owners/occupiers are being forced to stay at the property due to the AOC.

As you can imagine, since dwellings in the countryside are so precious no Local Planning Authority likes to see the removal of AOCs very easily and therefore professional advice and assistance to look at the route to move forward is essential.

Please contact the Rural Planning Team for further assistance.

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