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The Pubs Code etc. Regulations 2016

Draft Legislation:

This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Pubs Code etc. Regulations 2016 No. 790

Duty to conduct a rent assessment or an assessment of money payable in lieu of rent

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19.—(1) A pub-owning business—

(a)must conduct a rent assessment or an assessment of money payable in lieu of rent in connection with a rent review which is required under the terms of a tenancy or licence of a tied pub of which it is the landlord; and

(b)must conduct a rent assessment or an assessment of money payable in lieu of rent where a tied pub tenant of such a pub requests it under paragraph (2).

(2) A tied pub tenant may request a rent assessment or an assessment of money payable in lieu of rent if —

(a)such an assessment has not ended within the period of 5 years ending with the date of the request;

(b)there is a significant increase in the price at which a product or service which is subject to a product or service tie is supplied to the tied pub tenant; or

(c)the tied pub tenant demonstrates that a trigger event has occurred by means of a written analysis of the level of trading which is forecast for a period of 12 months or more beginning with the day on which the tenant makes the request.

(3) A request under paragraph (2) must be made in writing and—

(a)in the case of a request made under paragraph (2)(b), must be received by the pub-owning business within the period of 14 days beginning with the day on which the tied pub tenant receives notification of the significant increase; and

(b)in the case of a request made under paragraph (2)(c), must be received by the pub-owning business within the period of 14 days beginning with the day on which the tied pub tenant sends the written analysis referred to in that paragraph to the pub-owning business.

(4) The following are not rent reviews for the purposes of paragraph (1)(a)—

(a)an annual or other periodic indexation of rent;

(b)a change in rent in connection with the receipt of a corresponding benefit from the pub-owning business;

(c)a change in rent in connection with the freeing of the tied pub tenant from a product or service tie;

(d)any discussions in respect of changes in rent which are carried out within a review of the business provided for under the terms of the tenancy or licence.

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