Punch rent hike goes to tribunal

A couple who feel they are being penalised for their own success are having their case heard at a rent tribunal in Reading County Court following Punch Taverns' attempt to increase their rent by nearly 50%.

The tribunal will settle a two-year-old rent dispute over the Six Bells pub in Mill Street, Kidlington, Oxfordshire.

The passing rent stands at £21,561 and Punch wants an increase to £30,000. The dispute essentially centres on what is the fair maintainable trade at the pub, which is run by Keith and Tanya Dunne.

In his opening statement, Benedict Sefi representing the Dunnes, told recorder Flackard they had increased turnover from £150,000 to an average of £320,000 a year.

'My case is (that) the flair and hard work of the Dunnes made this possible and the fruits of which should go to them and not (Punch).

The Dunnes took over the lease in 1997 and at their own expense installed a children's play area in the beer garden, converted a disused function room into a games room complete with pool tables, refurbished the kitchen and introduced food. The couple previously managed to secure a reduced rent at their other pub, the Bricklayers Arms in Old Marston, from £31,500 to £24,500 in April 2003 because of increased competition in the area. Keith Dunne said: 'We put all our time and effort into the pub. We organised more stuff (than the previous tenant), increased the number of teams using the pub. We had cricket, rugby, darts teams. We got involved with it all. We had a different approach.

He added: 'Nobody in the pub could do the trade we are doing. No average tenant could do that.

Punch argues that the Dunnes, while being good tenants, are merely realising the potential of the venue. It would also prefer the couple to take a Punch Growth lease rather than renew their existing Vanguard lease.

A decision is expected next Wednesday when the hearing resumes.