RICS upbeat on pub costs surveys

The pub sector will soon have "good quality information" on running costs, which are used to set rents, for the first time.

So says the Royal Institution of Chartered Surveyors (RICS) in its submission to the Business, Innovation & Skills Committee (BISC), which is investigating progress made by the industry since last summer's damning report into pubcos.

MPs asked RICS to work towards a national database of trading information.

RICS said it is "encouraging an initiative by external parties" to create a new benchmarking service for the pub industry.

This will pool data from pubcos and other stakeholders and be a "valuable resource" for all involved in the rent setting and review process.

RICS said: "The opportunity exists to create a standardised system of benchmarking before the Committee's deadline for industry to demonstrate effective self-regulation [June 2011]."

RICS also "fully endorsed" the Association of Licensed Multiple Retailers' benchmarking survey and said the "industry will be well served by both benchmarking schemes running in tandem, as each will present data from different sides of the industry".

"Both schemes will complement each other - which means the pub sector will have good quality information for the first time, common in other related sectors such as the hotel industry."

RICS' updated Valuation Information Paper on rents was due in May.

But the group said it chose to "upgrade" to a full UK guidance note, imposing mandatory practice, following meetings with cross-industry representatives. The guidance is now expected in November.

"Despite the delay, RICS is encouraged by the wide-ranging progress the group has made and would like to offer the Committee assurance that the new guidance will take into account the views of all relevant industry stakeholders to the process."