News Article Comments : Pubco Inquiry: ‘Give us the truth’

Pubco Inquiry: ‘Give us the truth’

I'm getting weary of threads regarding valid topics being locked off because of one individual's behaviour. No one here refers to this person either directly or indirectly & yet any comment at which he takes umbrage results in a locked thread. Several of us have made a pact to ignore whatever he says in order to pursue subjects relevant to the interests which bring us all here, yet there is no escape from the barrage of sniping.

This is supposed to be a forum where issues affecting the pub trade can be freely discussed. If we are expected, as adults, to subjugate our varying views for fear of treading on egg shells then we might as well not post on this site at all. There is moderation & then there is censorship; what's going on here resembles the latter more than the former & is actually adding fuel to the flames.

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RE: Pubco Inquiry: ‘Give us the truth’

Hi S. ROBERTS, NICE OF YOU TO OFFER ANY ADVICE, I HAVE BEEN DEALING WITH DAVID MORGAN, HE TOOK UP MY CASE AGAINST ENTERPRISE WITH REGARDS TO RENT INCREASE, I HAVE NOW RUN UP A OF OVER £3500. ENTERPRISE DECIDED NOT TO GO AHEAD AT THE FINAL HOUR & TO KEEP MY RENT AT ITS ORIGINAL LEVEL, STILL TO HIGH FOR US, IM NOW IN PROCESS OF TRYING TO GET THEM TO PAY MY COSTS.EDDIE

This post replies to S Roberts > RE: Pubco Inquiry: ‘Give us the truth’

Pubco Inquiry: ‘Give us the truth’

Mark you have I assume read the RICS guide lines for rental valuations.

The Chairman of the RICS Committee deciding the format for rents in the pub industry was none other than the chief surveyor of one of the major Pub Co's.

The rent should be based on the potential earning capacity of the pub with some reference to the existing turnover, which strange though it may seem every Pub Co denies knowledge of apart from high volume pubs, where the pub valuation is linked to the turnover. The potential earning capacity is a joke since it is assessed by a few people who have never run pubs, the figures quoted are way in excess of reality on the middle to lower end pubs, creating this amazingly high average valuation on the Pub Co pubs, obviously to satisfy the city and borrowings.

The interesting thing is that with the diminishing business in the majority of pubs the potential earning capacity is in free fall, my question is why these surveyors are now ignoring their previous guide lines and not rushing forward to reduce the rents in line with the vastly lower potential earnings??? We all know the answer but a concerted effort to get the surveyors to use the same yardstick to substantially drop rents, if they did they would all be sacked. It is a very valid argument.

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Pubco Inquiry: ‘Give us the truth’

On the pubs that have been bought as freehouses, a number that I have seen, the rental level has totally ignored the existing turnover, using the potential earnings argument to establish an unsustainable level. The demise of various successive lessees surely points to a serious problem. The frequent granting of a new lease where the rental level is set using this method and the current downturn in business levels makes this method of rent calculation totally incorrect, if potential earnings are used to raise or set rents and the market changes as it has at the moment and will be very much the same for many years, there have to be serious questions raised about the so called norm used by these surveyors and companies and a complete revaluation across the board. The RICS needs to take a serious view about the way that these guide lines were established and their interpretations of use.

This post replies to martin kay > Pubco Inquiry: ‘Give us the truth’