Enterprise says High Court rent review case does not set precedent

Enterprise Inns has argued that a High Court ruling to allow a pub to pay £12,800 less rent than the company demanded does not set a precedent for future rent reviews.

Last week a judge ruled that Charles and Leslie Brooker, licensees of the White Horse, in Hambrook, near Bristol, should pay £18,000 rent, instead of the £30,800 wanted by Enterprise.

In his judgment, Judge Hughes QC said his assessment was based on rent being 35 per cent of the divisible balance of £51,500, instead of the norm of 50 per cent.

He said this would be seen as a "sensible compromise" in the current "highly unusual circumstances" adding that trading conditions facing pubs are "much worse than anyone can remember".

But in a statement Enterprise said the judge's decision "reflects his view of this one particular property".

"This is a matter of fact and is not a decision of principle or law and, as such, does not bind the outcome of any other lease renewal or rent review," the company added.

Enterprise also said it was "pleased to note" the judgment "explicitly approved and applied guidance issued by the Royal Institute of Chartered Surveyors (RICS) on the methodology by which pub rents are assessed".

It added: "The judgement sets a precedent on this point of valuation methodology which is now legally binding. Further, we are pleased to note that the judge explicitly rejected the alternative methodology proposed by the Brookers' advisor."

Meanwhile, MP Greg Mulholland, chair of the All-Party Parliamentary Save the Pub Group, has written to Business Secretary Lord Mandelson inviting him to attend a meeting of the group and hear pubco tenants' concerns.