'Right time to return to normal levels of rent'

14-Jul-2021 - Last updated on 14-Jul-2021 at 10:32 GMT

Rent due: pub companies have outlined their expectations for rent payments following the end of lockdown laws on Monday 19 July (image: Roy Mehta / Getty)

Pub companies have set out their plans for rent payments beyond 19 July, with most expecting tenants to pay full price when restrictions end.

Covid trading restrictions in England - including the rule of six, social distancing requirements and a ban on vertical drinking - are to be lifted on Monday 19 July.

Consequently, pub companies including Star Pubs & Bars and Greene King have confirmed tenants will be required to pay full rent from 19 July.

A spokesperson for Star Pubs & Bars confirmed normal rent would resume from Monday, replacing a 10% rent concession introduced in May.

The pub company has invested more than said £65m in rent concessions for leased and tenanted licensees over the past 16 months, the spokesperson said.

Long term support

They added: “We welcome the additional support provided by the Government to date, but urge the Prime Minister to provide pubs with long-term - support such as an extension to business rates relief and the VAT reduction, and a reduction in beer and cider duty.”

Admiral Taverns said tenants will be required to pay rent at 100% of their agreement level alongside full insurance and service charges from August onwards.

Admiral tenants received a rent credit of 10% for July, subject to a floor annual rent payment level of £5,200 with full insurance and service charges.

Greene King wrote to English operators following the Prime Minister’s confirmation that step four of the country’s unlocking roadmap would go ahead, to say the current 40% rent concession would be removed.

Right time

Tied tenants had received a 90% rent concession for most of the pandemic, moving to 40% when pubs were allowed to reopen indoors in May.

A Greene King spokesperson added: “Now England is moving to step four of the government’s roadmap and social distancing and other restrictions on pubs are being lifted, we feel now is the right time to return to normal levels of rent for pubs in England, as we hope to see pubs bouncing back with improved trade due to the removal of capacity restraints.”

Scottish Greene King tenants will be offered a 10% rent concession from 19 July until further notice given the ongoing restrictions under level zero of the country’s Covid measures.

Community pub operator Hawthorn said it would return to 100% rent in August in line with “the expected increase in trade” and rent is presently charged at 75%.