Pubs Code and adjudicator: market rent only option and rent assessments

We will be introducing a statutory Pubs Code to govern the relationship between businesses that own 500 or more tied pubs and their tied tenants. We will also introduce an independent adjudicator to enforce the code.

The Pubs Code is required as part of the Small Business, Enterprise and Employment Act 2015. The act means that the code must include a market rent only (MRO) option entitling tied tenants to be:

• offered (at certain trigger points) the opportunity to pay only a market rent for their pub
• free-of-tie for all products and services other than insurance

These measures will be introduced through secondary legislation.

We’re consulting on these measures in 2 parts. See part 2 of the consultation.

In this part we’re seeking your views on the MRO option including:

• disputes arising in relation to the MRO process
• the waiver from MRO in return for significant investment
• arrangements for rent assessments