IPC welcomes RICS pub rent findings

The newly formed Independent Pub Confederation (IPC) has welcomed the findings of the report into the fairness of rent setting.

The IPC, which includes key consumer, tenant and brewer groups such as Fair Pint, Association of Licensed Multiple Retailers, the Campaign for Real Ale (Camra), Justice for Licensees and the Society of Independent Brewers (SIBA), said the findings of the Royal Institute of Chartered Surveyors (RICS) reflected its own manifesto (RICS to make pub rent changes​).

"This is the second major, independent investigation of the sector and MPs and surveyors are in agreement — the status quo is not an option," an IPC spokesman said.

"The report identifies and addresses all the same concerns we as lessee representatives have been raising. Indeed, the RICS report goes further and suggests that if tenants were consumers, government would be obliged to intervene to address the adversarial nature of the relationship.

"This is a message which can no longer be ignored and the IPC stands ready and willing to discuss serious and substantive steps to tackle these problems with all stakeholders.

"The IPC looks forward to inputting and commenting on the proposed new RICS guidelines, Code of Practice and database of benchmarks and endorses the recommendation that this should be independent of industry.

"We look forward to proposing appropriately qualified lessee representatives to sit on the Trade Related Valuation Group, who have the necessary qualifications in property and direct operational experience to address the perceived concerns."

Nail on the head​

ALMR chief executive Nick Bish hailed the report as "succinct but authoritative".

He added: "The RICS has hit the nail on the head. This is exactly the clear strategic direction which ALMR and the newly formed Independent Pub Confederation has been calling for, and mirrors the recently published manifesto."

Bish also said he was pleased the ALMR benchmarking survey had been recognised as a good base for estimating Fair Maintainable Trade and divisible balance.

"We are particularly pleased that the RICS, like the Business and Enterprise Committee Report before, has recognised the value of the ALMR's Benchmarking Survey and we look forward to working with them and other industry partners to continue to refine, improve and expand its scope."

Camra​

Mike Benner, Camra 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."

"Given the repeated failure of pub companies to deliver meaningful reform in the past, the Government and/or Competition Authorities may need to act to require them to co operate with the ongoing process of reform."