Green light for rent adjudication scheme
The independent, low-cost rent adjudication scheme has been given the green light and is to be rolled out across the industry soon.
BII: all systems go for rent scheme
Licensees will pay between £1,000 and £2,000, with the pub company paying a similar amount, and the host would get to choose the valuer.
It's expected that the five trade groups involved in talks on the plan today - BII, Federation of Licensed Victuallers Associations, Guild of Master Victuallers, Association of Licensed Multiple Retailers and the British Beer and Pub Association - will choose a list of experts to handle the process.
The cost of the scheme will vary based on geography and rent. It's expected that licensees of pubs inside the M25 and with rent over £25,000 will pay the maximum of £2,000. Those outside the motorway and with rent under that level will pay a minimum of £1,000.
A statement agreed by the five trade groups says: "We are making good progress in putting the finishing touches to the scheme, which we hope to see working in the near future."
The scheme is seen as a way for the industry to respond to the criticisms in the Business and Enterprise Committee Report into pubcos, which said landlords often have the upper hand in rent negotiations.
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