Pub tenants to get RPI-rent reduction

Pubco tenants and lessees can look forward to an unexpected rent reduction after the annual Retail Price Index inflation rate (RPI) went negative last month.

Punch, Admiral Taverns and Trust Inns said this week they will honour the new -0.38% figure announced for March.

All three companies say they will automatically adjust rent review calculations to take account of the new figure.

Punch said agreements that have anniversaries dated between 1 March and 31 March will be in line for the reduction and backdated to the anniversary date.

Admiral Taverns confirmed its tenants would get the relevant reductions and also promised flexibility and fairness to those licensees caught up in "invoice vacuums" where review details were sent out in advance of the March RPI announcement.

Trust Inns said about 10% of licensees in its 600-strong pub estate were on RPI review agreements.

"We will follow the RPI figure and give our licensees the benefit of the reductions," said managing director Brian King.