Rent dispute scheme goes live next month
Pub tenants will have the opportunity to resolve rent review disputes from as little as £1,000 from mid-September.
Five major trade bodies — BII, Association of Licensed Multiple Retailers (ALMR), Federation of Licensed Victuallers Associations (FLVA), Guild of Master Victuallers (GMV) and the British Beer and Pub Association (BBPA) — have officially launched the Pub Independent Rent Review Scheme (PIRRS).
The scheme will provide a cheaper alternative to arbitration. The PIRRS board is made up of chair Bernard Brindley (BII), Nick Bish (ALMR), Brian Rees (GMV), Tony Payne (FLVA), Martin Rawlings (BBPA) and Neil Robertson (BII). It will operate independently of its participating organisations.
Tenants can use the scheme if their pub company is a member of the PIRRS.
Rawlings said involvement is "not optional" for BBPA member companies that operate tenanted and leased pubs. Robertson said tenants of non-BBPA member companies would also be able to access the scheme.
A clear fee structure has been devised to eliminate the uncertainty of costs with traditional legal disputes.
For pubs inside the M25 with a passing rent of under £25,000, the licensee will pay £1,500 and the landlord £2,500. For pubs in London with a passing rent of over £25,000, the licensee and landlord will both pay £2,000.
Outside London, pubs with a passing rent under £25,000 will pay £1,000 and the landlord £2,000. Licensees with a passing rent over £25,000 will pay £1,500 — as will the landlord.
Robertson said a list of valuers is being drawn up now. "There's a bit of negotiation underway. There's a fair bit of administrative work before we put together that list. We are confident we will get a good panel."
He said the scheme will be piloted in the next few weeks.
Robertson said: "BII is delighted to support the Pub Independent Rent Review Scheme which gives licensees who have exhausted all other means, an option for a fair rent resolution.
"The PIRRS will be hugely beneficial to both licensees and landlords and demonstrates to the government that the industry has listened to, and acted upon, the BEC report."
Member companies will also provide funding for the administration of the proceedings for all cases between all parties free of charge, ensuring impartiality.
All fees will be paid directly to the independent valuer. Upon signing into the PIRRS both parties will be required to legally forfeit any right to arbitration or referral to original final offers.
For more information email vasb@cveefpurzr.pbz
