Trade Group excluded from RICS talks
The Trade Valuation Group, which sets guidance on how pubs are valued, will not be invited to the Royal Institute of Chartered Surveyors forum looking into the fairness of pub rents.
The group, chaired by Fleurets managing director Martin Willis, came under fire at the Business and Enterprise Committee investigation into pubco power.
MP Lindsay Hoyle accused Willis of being a gamekeeper and poacher as his firm Fleurets sells pubs for pubcos but he also chairs the valuation group and works as an expert witness or arbitrator in cases.
"RICS has taken some public criticism and it wants to find out why and hear any ideas on how it can improve the situation," said Willis. "It will then report back to the Trade Valuation Group and the BEC. It has to be independent so we won't be there."
Willis said the profits valuation method had been heavily criticised but he had yet to hear of a viable alternative. "The profits method is used worldwide. If it is so wrong, where are the alternatives? It will be interesting to see what is put forward."
He believes that rents have come more sharply into focus because of the recession. "The recession makes things worse as rent becomes a bigger cost for the business."
Willis also repeated his view that the pub trade should not have a register of pub rents to help with comparables as no two properties were the same in terms of their agreements. "No other industry has such a thing," he said. "Why should pubs be different?
"We have to remember that an awful lot of lessees settle their rent amicably with their pubco and only a tiny amount go to arbitration."
One source said he did not hold out much hope for change. "I think the process and the number of people invited to the talks may be too broad but we shall see."
