Campaigners and ALMR welcome rent report
Campaign group Fair Pint and CAMRA have welcomed a report promising greater fairness in the way pub rents are set.
In the report, published today, the Royal Institution of Chartered Surveyors (RICS) said it will compile a new code of practice on rents and offer a database of trading information for licensees. The proposals were among a host of measures designed to improve relations between tenants and pubcos.
It also clarified that a tied tenant should be no worse off than a free-of-tie tenants, if its guidance is properly followed.
Karl Harrison, a spokesman for Fair Pint, said: "It now appears that the RICS, and a leading property lawyer, agree with the Fair Pint Campaign that a rent review should leave the tied tenant no worse off financially than the non-tied tenant."
He also welcomed the fact RICS was not endorsing the 50/50 split of the divisible balance and had acknowledged the recent High Court Brooker case.
Harrison also claimed the report discredited the British Beer & Pub Association's recent agreement with the BII and the Federation of Licensed Victuallers Associations on reforms to the pubco model, following the mediation process.
"The RICS report today shows up the so-called settlement between the BBPA, BII and FLVA for what it is - a sham," he said.
Mike Benner, CAMRA's chief executive, said: "We are delighted that RICs intend to take the lead in establishing a meaningful code of practice on rents, a database of trading information and a campaign to highlight the importance to licensees of seeking professional advice before agreeing to any rental proposal.
"The review also clarifies that tied tenants should be no worse off than non-tied tenants.
"It is the application of this core principle which will enable a fair share of the benefits of tied agreements to be delivered to consumers."
Nick Bish, chief executive of the Associaiton of Licensed Multiple Retailers, also welcomed the report and recommendations.
"RICS has hit the nail on the head," he said.
"This is exactly the clear strategic direction which ALMR and the newly formed Independent Pub Confederation have been calling for, and mirrors the recently published manifesto."
