What is an ‘agricultural tie’ and when is it applied?

Many commercial activities in the countryside will require a constant on-site presence, which can only be achieved by providing living accommodation for an employee. A common example would be in certain types of agriculture where it is essential for somebody to be on hand 24 hours a day to check on livestock.

Generally speaking, local authorities will resist proposals for new homes in the countryside. However, in situations where there is a genuine business need, they will normally grant planning permission for a new home if the applicant is willing to accept an occupancy condition to restrict its use to agricultural employees and their dependents.

This condition, known as an agricultural tie, allows for the development of new homes in the countryside, while preventing these from becoming ‘open market’ dwellings.

The downside to occupancy conditions

While agricultural ties have proven a very successful mechanism for supporting the rural economy, they do have their downsides, which tend to crop up when the owner comes to sell the property.

This is because the condition restricts the market of prospective purchasers to those who are able to comply, which has the impact of reducing the value of the property, normally by about 30 per cent. Given that tied properties are often located in high-value rural locations, this impact can be substantial.

Further, in situations where the original commercial activity has ceased, and depending on the wording of the condition, it may be impossible for any purchaser to comply.

Can an agricultural tie be removed?

Fortunately, it is possible to vary, suspend or even remove agricultural ties in certain circumstances. The options for achieving this goal include: 

• Applying to the local council for the condition to be removed or varied. This is the most commonly used method and involves making an application, with supporting evidence, to demonstrate that the condition no longer serves a useful purpose. For example, if the original business no longer exists and/or if it can be proven that it has not been possible to sell the property to a qualifying purchaser for a period of time (normally 6-18 months).

• Applying for a Certificate of Lawful Existing Use or Development (CLEUD) on the grounds that the occupancy condition has not been complied with for a period of at least 10 years. In this case the condition has not been removed, but effectively suspended. Once the CLEUD has been granted, most councils will be willing to accept a formal application to remove the tie entirely.

• Where the property is at least four years old, but was not constructed in accordance with the original planning permission, it may be possible to apply for a CLEUD to establish that it is technically not the consented property and that the occupancy condition cannot therefore be applied.

In all cases, it is essential to tailor the strategy to the specific circumstances of the property so it is always recommended to seek professional advice from an experienced planning consultant. By adopting the correct strategy from the outset, the prospects of success will be greatly enhanced.

Further information

Contact Savills Rural Planning