Agricultural Occupancy Conditions Explained

Our experts explain what Agricultural Occupancy Conditions are and how they might impact properties in rural areas

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Agricultural Occupancy Conditions (AOCs), commonly referred to as an "agricultural tie," "agricultural occupancy clause”, or “agri tie”, are planning restrictions placed on certain properties in rural areas originally because a farmer convinced the local council that it was essential for him/her to live on-site to be near vulnerable livestock or crops.  Consequently, these conditions limit who can live in a dwelling, restricting occupation of the dwelling to people who work in agriculture, forestry or related rural industries.  Sometimes the restriction relates to the running of genuine equine business and more rare occasions restrictions can relate to someone who works at a nearby business being granted for security reasons and not for agriculture at all.

So, the purpose of an agricultural occupancy tie is to ensure that rural workers, such as farmers and equestrians, have access to affordable housing near their place of work, in the open countryside where planning permission for new homes would otherwise be restricted. In this article, we'll explore what AOCs are, why they are imposed, who can live in such properties, and the pros and cons associated with them.

What Is an Agricultural Occupancy Condition?

Agricultural Occupancy Conditions, or AOCs, play a crucial role in the planning and development of rural housing. These conditions restrict the occupancy of a dwelling to those employed in agriculture, forestry, or certain other rural-based industries. However, it is vital to carefully read the actual wording of the restriction in question because they can vary significantly, especially with older properties built in the 1940’s and 50’s.  So, for farmers, rural workers, and landowners, these conditions offer an opportunity to gain planning permission in areas where housing development would typically be prohibited. By providing affordable housing options near agricultural work, AOCs support the needs of rural communities.

However, these restrictions can also pose serious challenges especially when they have outlived their original planning purpose.  The limitations on who can occupy these properties heavily impact values and resale options, creating potential legal and financial hurdles for the owners. Nonetheless, houses and bungalows with AOCs often continue to play an essential role in ensuring the viability of rural businesses, while also preserving the character and purpose of the countryside.

AOCs are attached to properties via the planning permission decision notice and sometimes, not normally, may also be backed by a planning obligation such as Section 106 agreements, which can act as a double tie on the occupancy of a dwelling to specific agricultural or other specified employment. The wording usually stipulates that the property can only be occupied by someone "wholly or mainly or last" employed in agriculture or by their dependents. These conditions help maintain a balance between rural housing supply and demand.  The key goal of the council’s planners is to prevent isolated and unnecessary housing developments in the countryside while supporting those who need to live close to their agricultural employment.

Why Are Agricultural Occupancy Conditions Imposed?

Planning policies in the UK and many other countries seek to protect rural areas from unnecessary housing developments. The countryside is generally reserved for agricultural and natural use, with planning permission for new dwellings being tightly controlled. Agricultural Occupancy Conditions are one of the few exceptions to this rule, allowing rural workers to live near their place of work when it is essential to do so.

For example, farming and equestrian businesses often require workers to be available 24/7 to manage livestock, maintain crops, or handle emergencies. AOCs enable these businesses to house employees in close proximity to the business. Without such conditions, these workers might struggle to find affordable housing in rural areas where property prices are inflated, and development is limited.

Who Can Live in a Property with an Agricultural Occupancy Condition?

To comply with an AOC, the occupant must be employed in agriculture or a related rural business. This typically includes farmers, farm managers, foresters, equestrian workers, or even those working in horticulture or other land-based industries. The condition will usually also extend to the dependents of the agricultural worker, such as a spouse or children, or widow or widower of such a person.

The definition of "dependents" has been broadened in recent years, as seen in legal cases like Shortt v Secretary of State for Communities and Local Government Shortt v Secretary of State for Communities and Local Government Shortt v Secretary of State for Communities and Local Government 2014. In this case, the court ruled that a "dependent" could include a spouse who is not financially dependent on the agricultural worker but still shares the home with them. This interpretation has widened the scope of who can lawfully reside in a property subject to an AOC, making it more inclusive for families.  Consequently, the Shortt case could provide a way for a family to lawfully occupy an AOC dwelling always provided that an adult is genuinely employed in agriculture.  However, ‘hobby farming’ or the keeping of a few horses would not be sufficient and the best policy would be to seek confirmation of the proposal from the local council by way of a Certificate of lawfulness.

Pros and Cons of Agricultural Occupancy Conditions

Pros

1. Enables Planning Permission in Restricted Areas:
AOCs allow rural businesses to secure planning permission for housing in locations where new dwellings would typically be prohibited, ensuring essential workers have homes near their place of employment.

2. Provides Affordable Housing:
Rural workers can access affordable housing in the countryside, which might otherwise be too expensive without the occupancy restriction.

CONS

1. Limits Property Value:
Properties with AOCs tend to have a much lower market value because they can only be occupied by buyers who meet the AOC’s requirements, thus significantly reducing the pool of potential purchasers.  Also, mortgage companies are often now unwilling to advance loans for such properties.  This can make such properties almost unsellable.  

2. Challenges with Inheritance and Resale:
If a property subject to an AOC is inherited by someone who doesn’t meet the conditions, they may not be allowed to live there, neither can they rent the property to a non-compliant tenant, or even get access to equity release on the property’s value.

3. Agricultural Tie Removal: It can be complex and expensive to satisfy an agricultural occupancy condition and removing the agricultural tie can seem impossible without the right help.

How to Obtain Planning Permission with an Agricultural Occupancy Condition

Securing planning permission with an AOC requires demonstrating a clear need for a rural worker to live on or near the property, plus there must be evidence of a viable existing agricultural business.  So someone with a mere proposal would be wasting their time submitting an application for a new farm worker’s dwelling.  The National Planning Policy Framework (NPPF) outlines the criteria, including proof that the worker’s presence is essential to the ongoing operation of the business. However, Livestock farming, for instance, often justifies an AOC, as farmers need to be on-site to care for animals round-the-clock.

Just stating a need is not enough; applicants must also show that there are no suitable existing properties in the area and that the business itself is viable and will remain so for the foreseeable future.

Can Agricultural Occupancy Conditions Be Removed?

Agricultural tie removal is challenging but possible. There are two well known methods:

1. Proving a 10-year breach: If a property has been occupied by someone who does not meet the AOC conditions for over 10 years, the owner can apply for a Certificate of Lawful Existing Use or Development (CLEUD). However, strong evidence is required, and local authorities have been known to take enforcement action during this period.

2. Demonstrating no local demand: The more common route involves marketing the property for at least 12 months at a price that reflects the AOC restriction. If no eligible buyer or tenant is found, the owner can apply for the condition to be removed through a Section 73 application.

However, our team are able to achieve the removal of agricultural ties using a variety of other methods apart from the usual two mentioned above.  We have a wide and varied experience as council planning officers, so are able to see opportunities which may have otherwise been missed.  In some cases, we are able to prove to the Council that a restriction should never have been imposed in the first place, therefore the tie should now be lifted.

Get in touch with our expert team today for advice on how to remove an agricultural tie on your property
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How Do Agricultural Occupancy Conditions Affect Property Value?

AOCs reduce property value because they restrict the buyer pool to those eligible under the condition. In some cases, properties may sell for 30%–40% less than similar homes without an AOC. For the owners of such houses and bungalows , this can be a significant drawback, but for rural workers, it makes housing more affordable.

The significant impact that an AOC has on property value is one of the reasons that people seek to remove the agricultural tie.  If you have questions about this process or would like any advice on how to satisfy an agricultural occupancy condition please get in touch with our expert team today.

Common Questions About Agricultural Occupancy Conditions

How to check if a property has an AOC: Look at the planning permission documents, i.e. the relevant decision notices for when permission was originally granted.  Such notices are where the actual wording of the restriction will be stated. These decision notices are often available for viewing on-line, but if they are not you will need to consult the local authority directly.  When buying properties, it is normal for the purchasers’ solicitors to contact the council to obtain details of the relevant planning history.  However, this can go seriously wrong because sometimes the searches only go back 10 years, whereas an AOC could have been imposed 50 or even 60 years ago for example.  We would therefore suggest that purchasers’ solicitors insist on full details of the property’s planning history as held in the council’s statutory Planning Register.

What happens if you live in an AOC property without qualifying: The local authority can take enforcement action against you by way of an enforcement notice or a breach of condition notice.  If you then fail to comply with the notice there may be a prosecution in a criminal court with a fine and effectively an eviction, plus a record relating to all this will be place on the Council’s statutory Planning Register and will remain there indefinitely. This last point may not sound a problem but it will mean that when future searches are carried out by solicitors acting for prospective buyers, the record may well put potential buyers off.

What happens if the business associated with the AOC changes: If the need for the rural worker ceases, the property may no longer meet the condition, and removal of the AOC can be sought, but the process will most probably not be straightforward and may never be successful.

Agricultural Occupancy Conditions are a vital tool in rural planning, ensuring essential workers have housing near their workplace. However, these conditions can also reduce property value and complicate resale or inheritance especially where a beneficiary is not a farmer or simply does not need the property in question.. Seeking professional advice and understanding the implications of AOCs is crucial for anyone dealing with rural property. As the nature of rural work evolves, AOCs may become increasingly important, but navigating their complexities requires careful management.

Discover how our experts approach satisfying agricultural occupancy conditions
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