Rent review scheme made available to pubs code tenants

By Liam Coleman contact

- Last updated on GMT

Resolution: the scheme will help tied tenants with rent disputes
Resolution: the scheme will help tied tenants with rent disputes

Related tags: Rent review scheme, Dispute resolution, Public house

A rent review scheme from the Association of Licensed Multiple Retailers (ALMR), British Beer & Pub Association (BBPA) and other industry bodies has been made available to licensees governed by the pubs code.

The Pub Industry Rent Review Scheme (PIRRS) is now offering a tied-rent resolution service to companies and tenants from the six pub companies with more than 500 sites (Greene King, Marston's, Star Pubs & Bars, Admiral Taverns, Punch and Enterprise Inns).

When the pubs code became law in July 2016, the resolution service no longer covered tenants of the six biggest pub companies.

However, following requests by these six pub companies and their tenants for a low-cost review scheme to resolve tied rent disputes, the Pub Governing Board (PGB) has agreed to amend the procedure to give interested parties access to PIRRS.

Those companies and tenants wishing to use the service can use PIRRS to resolve tied-rent issues on a mutually agreed, case-by-case basis and payment of an administration fee. 

'A positive step'

PGB chairman Sir Peter Luff said: "The introduction of the statutory legislation last year led to a situation whereby those companies affected and their tenants could no longer use the low-cost equitable method of resolving tied-rent disputes provided by PIRRS.

"Following discussions with companies and tenants, we are pleased to announce the PIRRS procedure has been amended to allow the use of PIRRS to resolve tied rents on a case-by-case basis, if both parties mutually agree to use the system. 

"This is a positive step that will benefit both companies and tenants."

ALMR support

ALMR chair Kate Nicholls, who is on the board of the PGB, added: "This is a sensible and pragmatic step to continue to make available alternative forms of dispute resolution should the parties not wish to go to court, and the ALMR is fully supportive of it.

"With the introduction of the pubs code, there has been no mechanism for regulating tied-rent assessments and settlements other than formal arbitration. This can be very costly, time-consuming and with an uncertain outcome. This plugs the gap and ensures that tenants have a quick and cheap dispute resolution mechanism for their tied rent if they have not decided to pursue MRO."

Related topics: Legislation

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