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03/06/2014
New Rules To Help Pub Tenants
Landlords of pubs tied to major chains have won a fight for better protection from unfair treatment in a move that could help beer prices fall.
Among the new rules is the right to request a rent review after five years.
Tenants of pubs under the 'beer-tie' agreements represent almost a half of the pubs in the UK. The 'tie' refers to obligations to make them buy beer from the firm that holds their lease at above market prices, in return for subsidised rent or other benefits.
The new rules follow a complaint in which such landlords claimed they earn less than the national minimum wage salary of £10,000 per year.
The government said that, following a consultation last year, it was setting up a statutory code with an independent adjudicator available to settle disputes.
This organism would have powers to impose sanctions on pub-owning companies failing to accomplish the code and the findings of any inquiry into allegations of unfair treatment.
Business Secretary Vince Cable said: "Far too many landlords feel their income is squeezed by big pub companies. So today we are tacking action to make sure they get a fairer deal”.
(CVS/IT)
Among the new rules is the right to request a rent review after five years.
Tenants of pubs under the 'beer-tie' agreements represent almost a half of the pubs in the UK. The 'tie' refers to obligations to make them buy beer from the firm that holds their lease at above market prices, in return for subsidised rent or other benefits.
The new rules follow a complaint in which such landlords claimed they earn less than the national minimum wage salary of £10,000 per year.
The government said that, following a consultation last year, it was setting up a statutory code with an independent adjudicator available to settle disputes.
This organism would have powers to impose sanctions on pub-owning companies failing to accomplish the code and the findings of any inquiry into allegations of unfair treatment.
Business Secretary Vince Cable said: "Far too many landlords feel their income is squeezed by big pub companies. So today we are tacking action to make sure they get a fairer deal”.
(CVS/IT)
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