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New Pub Company Reforms mean boost for local landlords

June 4, 2014 12:40 PM

New rules unveiled by the Liberal Democrats will help pub tenants battling to pay rent or beer costs in Cheadle constituency, local MP and CAMRA (Campaign for Real Ale) member Mark Hunter has said today.

Landlords tied to large pub companies have said they are struggling to make a decent living, with more than half claiming they earn less than the minimum wage.

The Government will give landlords the right to request a rent review after five years, as well as set up an independent adjudicator with the power to resolve disputes.

Tied tenants have to buy beer from their owning company, and usually pay a higher price for it. This should be balanced out by subsidised rent or other benefits they may receive from their pub company, but this may not happen and rents can be too high. However, under the new code, pub landlords will benefit from fairer rent assessments.

Mark Hunter said:

"I am a long-term supporter of our local publicans and recognise the vital part they play in communities across Cheadle constituency; as well as making an important contribution to the economy. The variety of beer and ale that we have to enjoy was clear at the Annual Stockport Beer Festival which I visited last weekend!

"For a while however, I have felt that too many landlords' income is squeezed by big pub companies. As such I am pleased that the Liberal Democrats are taking action by introducing these reforms that will ensure that landlords will get a fairer deal."

Within the proposals are measures that will ensure:

  • All tied tenants will be given the power to request a rent review if they have not had one for five years.
  • All tied tenants will also have the right to review the information pub owning companies have used to decide to increase rents. This greater transparency will allow tenants to see what information their landlord has used in calculating the rent, and decide whether an increase is fair.
  • There will be additional protection for tied tenants whose pub owning company owns 500 or more tied pubs. If they cannot agree a tied rent with their pub company, these tenants will have the right to request a 'parallel free-of-tie rent assessment' to show whether they are worse off than their free-of-tie counterparts.
  • Tied tenants will be able to report breaches of the code to a new independent adjudicator who will also arbitrate on rent disputes.