RICS ignores TISC call for clarity on pub rents
The Royal Institute of Chartered Surveyors (RICS) has "snubbed" the key recommendations of the Trade & Industry Select Committee (TISC) by failing to breathe transparency into the rent calculation process.
That is the view of frustrated Freedom for Pubs Association co-founder Brian Jacobs after RICS issued revised guidance on the valuation of licensed premises.
The accountant hoped the RICS valuation faculty's review of its guidance notes would lead to a real breakthrough on rent calculations.
However, he claimed the guidance does not ensure transparency in rent setting or address the TISC recommendation that tied tenants should be no worse off than free-of-tie tenants.
"They have played around with a few words but said nothing constructive," said Jacobs. "I think they did not want to admit they have been wrong for the last 15 years. There is a silent concerted effort to ensure no-one sees what they are doing. It's like the Magic Circle - no-one tells you how the tricks are done."
Jacobs suggestions to the valuation faculty were largely ignored.
He wanted to see plans for a detailed profit assessment to help provide clear and concise data for rent calculation.
This would be attached to a lease and appear on the RICS register making rent comparisons simpler.
However, Rob May, chairman of the working party that produced the new guidance, said the principle reason for the review was to "address the lack of clarity" to non-valuers about how profit and loss accounts are used to assess rent levels.
