Pub rents: RICS rent panel must meet again

By Ewan Turney

- Last updated on GMT

Related tags: Royal institution of chartered surveyors, Rics

Rent: confusion remains
Rent: confusion remains
The Royal Institution of Chartered Surveyors (RICS) must now reconvene to produce a clear interpretation of its rent setting guidance in the wake of the Business, Innovation & Skills Committee (BISC) report.

That’s the view of one member of the rent setting valuation guidance panel, Simon Clarke of the Enterprise leased Eagle Ale House in Balham.

Although the BISC praised the new RICS guidance as “one of the few positive messages” it said that it was “deeply frustrating” that confusion remained over the principle that a tied tenant should be no worse off than a free-of-tie tenant.

It said the on-going debate, most recently publicly played out by Lib Dem MP Greg Mulholland and Enterprise Inns boss Ted Tuppen, was a “demonstrable failure of the RICS guidance”.

It added that it showed a “lack of willingness on both sides to resolve the matter to the benefit of the industry”.

Chartered surveyor Clarke said: “I don’t think RICS can afford to leave it as it is.

“It just doesn’t look good that there is such a difference of opinion.

“Our challenge is to prove to RICS that the tied tenant should be no worse off than the free of tie, but if they decide the other way, then we would have to reluctantly accept it.

“But they must come out and say it means this so that there is no grey area.”

Enterprise boss Tuppen maintained during the oral evidence sessions that his interpretation was that the guidance says it is difficult to compare tied and free-of-tie pubs and so a valuer should make comparisons between pubs on similar terms.

Related topics: Property law

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