Move to cut pub inventory disputes

Disputes between tenants and pub companies about inventories could be reduced thanks to a new procedure agreed by more than 100 pub property valuers.

The move is deemed necessary because many modern tenancy agreements lack a procedure for resolving such disputes that can prove costly for tenants, said the Association of Valuers of Licensed Property's (AVLP's) honorary secretary Bob Whittle. Under the procedure revealed this week, all 110 AVLP members have agreed to appoint an independent expert valuer (IEV) if an inventory valuation cannot be agreed by both sides.

The AVLP has set up a panel of IEVs to choose from, and if the two valuers (one for the ingoing tenant and one for the outgoing tenant) cannot agree on the appointment, the decision will be made by either the AVLP president Roger Thomson or Whittle.

If either the seller or buyer refuses to accept using an IEV, the two valuers must both tell their clients and the landlord that the change cannot go ahead unless both parties agree to the dispute procedure.

The valuers must make their clients aware of the extra costs of the procedures and let them know that the decision of the IEV is binding.

Smooth running​

Whittle said: "This kind of procedure has been running for more than 100 years, but for some reason some breweries and pub companies have removed it from their tenancies.

"So by doing this, we want to help solve any complications and assist a smooth running. It will help and protect the genuine tenant.

"We need to have provisions set in place for those who choose not to take the sensible route in solving the problem.

"Of course, we would like to see the terms brought back into tenancy agreements."

Fleurets' chairman and AVLP member Barry Gillham said there have been recent problems where either an ingoing or outgoing tenant refuses to agree with the inventory valuation.

"It had got a bit sloppy so members said this is the way it ought to be done — there was a lot of threats and cajoling going on," Gillham said.

"As there are more leases coming in now, the terms have been getting lost during transfers."

Industry advisor Phil Dixon supported the new procedures.

"This highlights the need for people to have independent, expert advice," Dixon added.

"I know of a number of occasions where inventories have been out of date."