Spirit tenant gets 28% rent cut

Lorraine Wager had been at the Hart of Duston in New Duston, Northampton, for three years and in that time had seen trade drop from around £7,000 a week to just £3,000 as a nearby industrial estate has also struggled in the economic slump.

The rent had been £64,000 a year when she took on the lease but that was halved in the first year to £36,000. Punch had offered a rent of £35,000 but this was rejected.

Spirit, which took control of the pub following its demerger from Punch, then agreed to settle at £26,000 before the arbitration process kicked-off.

“It is a huge relief because I was borrowing money to pay the rent,” said Wager. “I still don’t think I will make a profit, but I will survive.”

Wager said she has made a loss of £37,000 since taking on the pub three years ago. “I think you have just got to fight them on rents.”

David Morgan, director of Morgan and Clarke Chartered Surveyors, who represented Wager said: “Before Spirit took over the freehold interest, Punch were adamant that £36,000 represented a fair and reasonable offer for the Hart of Duston.

“The only way to bring the matter to a head was through arbitration proceedings and a RICS arbitrator was re-cently appointed.”

He added: “I am very glad that we brought the situation to a head after some eight months’ fruitless negotiation and that the rent has been settled by agreement, saving the formality of the arbitration procedure.”

A Spirit spokeswoman maintained: “We have taken a pragmatic approach to this matter to reach a swift conclusion.”