The Pub Governing Body (PGB) has agreed with the pubcos who follow the tenanted and leased codes of practice and self-regulation that all rent review negotiations will be suspended until further notice.
PGB chair, Sir Peter Luff, said: “This pragmatic and sensible step is in addition to any agreements individual companies have put in place for their pubs, and relieves all tenants of one possible worry during the coronavirus epidemic.
“This quick and flexible response to the current crisis brings real benefits to pubs and we hope it will be welcomed.”
In practical terms, the announcement means:
- A pause in ongoing and upcoming rental negotiations
- No requirement for business development managers to respond within 35 days, though best attempts to do so should be made, and accepting that the response can be made by an alternative representative of the pub company rather than only the BDM
- Visits for the purposes of rent assessment being postponed until pubs re-open
- Any request submitted by a tenant for a rent review during the suspension period being paused until that period ends.
- Subsequent rent review periods being shortened by the length of the suspension period, ie three months.
Pub Governing Body members are six of the industry’s leading associations representing both tenants and landlords: UKHospitality, the Licensees Association, the British Beer & Pub Association, the British
Institute of Innkeeping, the Federation of Licensed Victuallers Associations, and the Guild of Master