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This information is intended for both landowners and tenants, to explain the significance of having an agreement that defines the conditions surrounding the letting of land.When pasture is let for horse or pony keeping the Agreement is often referred to as a Grazing Agreement. It is important to detail what activities are permissible on land and to whom responsibility will fall for maintenance and management work. A properly written legally binding contract is essential for the protection of both parties and will help preserve land and pasture quality. Please be aware that the information on this page is available with pictures as a PDF at the end of the page.

1. Introduction
2. Agreement Types
3. Welfare
4. Land Suitability
5. Agreement Details
6. Terms and Conditions
7. Summary

1. Introduction

Surrey is a beautiful county with 84% recognised as countryside and over 25% designated within the Surrey Hills Area of Outstanding Natural Beauty (AONB). Increasing horse numbers are creating a visible impact throughout Surrey and so measures must be taken to ensure this impact is positive.

Whether land is rented on a short or long-term basis, an agreement is fundamental. The importance of having a tenancy or grazing agreement is frequently underestimated until a problem occurs. It is the means to set out responsibilities clearly and should avoid uncertainty. For instance it can set standards for the condition of the pasture, detail what activities are permissible on land and to whom responsibility will fall for maintenance and management work in order to avoid neglect.

Some landowners will automatically invite a tenant to sign an agreement drawn up by a suitably qualified third party. However, when small amounts of land are let, an owner may decide to manage the letting themselves. In all instances, it is advisable to contact an appropriate advisor, say a solicitor or a suitably qualified (e.g. Royal Institution of Chartered Surveyors (RICS)) rural surveyor, to ensure an appropriate legally binding agreement is drafted.

Verbal agreements should be avoided: a written agreement provides greater protection for all parties.

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2. Agreement Types

Traditionally, there are two types of agreements:

• Rolling, when the Agreement will go from month to month until either party decides to end it. A satisfactory notice period (normally a minimum of one month) must be written into a rolling agreement to allow both parties long enough to rearrange their affairs. A rolling agreement provides less security for the Tenant as no long-term period of occupancy is guaranteed. Maintenance responsibility most often remains with the Landlord.
• Fixed Term, when the Agreement will be for a specified period (e.g. two years) but with a clause allowing either party sometimes for specified reasons to withdraw after serving a period of notice (e.g. one month). The responsibility of maintenance and repair work usually falls to the Tenant, as he/she has a greater level of occupancy security and therefore an incentive to maintain fences etc.

Rolling agreements are now uncommon. This advice page outlines key issues which must be addressed in any grazing agreement but concentrates on what is usually found in a fixed term agreement.

If permanent facilities (e.g. stabling) are sited on land which is to be let, a more substantial agreement may be needed and further advice may be required. Similarly if an occupier uses land for business rather than recreation, another form of agreement is relevant, because separate legislation applies.

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3. Welfare

The welfare of horses and ponies must be the primary consideration for both the livestock owner and the landowner. The proper welfare of horses and ponies is dependent along with other factors on good and well-maintained pasture. A written agreement to which both parties agree at the outset makes it easier to retain and enforce the standards. Most landlords and tenants wish for the land to be put and/or kept in good condition and appearance, and generally speaking this will provide a safe and productive area for the grazing and keeping of horses. An agreement by itself cannot do this but should encourage a positive impact on the landscape.

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4. Land Suitability

First, the suitability of pasture must be given some thought. Parameters such as soil quality and drainage, grass composition, fencing, shade/shelter and access must be assessed to decide whether land is suitable for use as horse grazing; landlords will tend to let tenants carry out this assessment.

There may be occasions when planning permission is required. In general if horse grazing has been carried out for several years previously, it is unlikely that permission will need to be sought. Remember though, use for agricultural purposes does not cover horse grazing/keeping unless horses are kept solely for agricultural use or breeding purposes. In the main, equine uses are a class of use requiring planning permission. If in doubt, contact the Local Planning Authority (the Borough or District Council) for advice.

You should also check if the land lies within an area which has landscape protection designation (e.g. AONB), has a conservation status (e.g. Site of Special Scientific Interest) and/or is under a land management agreement such as Countryside Stewardship. The Local Planning Authority will be able to advise. Designations and agreements may affect what you can do on the land and may affect any planning application.

When it is established that letting land for grazing is both practical and legally acceptable, an agreement must be written.

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5. Agreement Details

An agreement usually starts with a definition of the particulars:

• The names and addresses of the Landlord and Tenant who will thereafter be referred to respectively as the Landlord, Owner or Licensor and the Tenant, Licensee or Occupier.
• The dates between which the Agreement applies, indicating the period of tenancy. It is worth bearing in mind that a long-term agreement is likely to attract greater tenant commitment than a short-term agreement. A clause allowing either party to serve one month's notice will enable the Tenant or Landowner to terminate the Agreement should they wish.
• The location and approximate size of the land with reference to an accompanying plan marking the site boundary. An Ordnance Survey plan with the plot of land outlined will suffice.
• The sum to be paid as the fee, the appropriate method of payment and when it is due. Any outgoings (for example water rates, electricity etc) that the Tenant will be required to pay should also be listed. If an agreement is for a period of one year or more, it is wise to consider including a rent review clause to allow an increase or decrease of rent. The Tenant's entitlement to pro-rata return of rent in the event of notice being served should be detailed.

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6. Terms and Conditions

The following points address some essential utilisation and management practises that an agreement should include. The terms and conditions - including whether responsibilities fall to the Landowner or Tenant - will vary depending upon the circumstances in which a plot of land is let.

A tenant will usually be responsible for:

• Keeping land clear of injurious weeds, including ragwort, broad-leaved dock, curled dock, creeping thistle and spear thistle.
• Stopping any damage to the present trees and fences.
• Maintaining condition of and repairing when appropriate, gates, fences, hedges and trees growing on the land.
• Grazing only his/her horse(s) and/or pony(ponies) on the land and ensuring no part of the land is assigned, sub-let, shared or parted with possession.
• Ensuring land is used only for grazing and by an appropriate number of horse(s) and/or pony(ponies).
• Gaining the Landowner's consent prior to storing vehicles/equipment on the land or putting up any fixtures.
• Having appropriate liability insurance for any injury or damage to third parties caused by the horse(s) and/or pony(ponies) whether on or off the land. The Landowner will also require adequate insurance cover.
• Indemnifying the Landlord for any damage and all costs and liabilities including legal costs and expenses incurred as a result of, or caused by the negligent act or omission of the Tenant.
• Maintaining land in accordance with the advice given by the Horse Pasture Management Project in the Grassland Management Advice Note (003).
• Ensuring any public or private right of way is not obstructed.

Whilst the Tenant may be expected to maintain fences, gateways etc to the standard held at the beginning of the tenancy, if measures beyond repair are necessary, renewal usually becomes the Landowner's responsibility. The exception to this would be if the Tenant has caused excessive damage beyond reasonable wear and tear. For example, a fence line that requires a new top rail due to the Tenant's horse(s) and/or pony(ponies) repeatedly chewing or cribbing would be the Tenant's responsibility.

A welfare clause should be included in an agreement to ensure horse(s) and/or pony(ponies) are kept in good condition. Healthy horses also generally reflect a good tenant.

The Tenant who pays the fee as requested and meets the terms of an agreement is entitled to the use of the land without interference from the Landowner. However, if there is a tenant's breach of condition, the necessary provisions must be in place to allow the Landowner early possession. Regardless of how an agreement is terminated, vacant possession must be given at that time.

Finally, both parties must sign the Agreement in the presence of witnesses.

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7. Summary

A negotiated written agreement will ensure the Landowner and Tenant know exactly what is expected of them during the course of the tenancy. It will make it easier to resolve issues and avoid dispute. By doing so, a detailed agreement will go a long way towards making certain the quality, visual appeal and safety of grazing is preserved for everyone's benefit.

The advice note is also available in a PDF version by following the link below.