Call for review of pubs code after Punch sell-off raises suspicions

The advisory group supports licensees, including Carol Ross of the Roscoe Head​, who believe they were sold to prevent them from opting for Market Rent Only (MRO).

Under current laws pubcos owning more than 500 pubs must offer MRO - which allows licensees to buy beer on the open market. The Pubs Advisory Service calls for this to be lowered.

Co-founder Chris Wright said: “It was stated by the Business, Innovation and Skills committee officials during the run-up to the new the law that the government would look at moves by pub companies to reduce their holding to below the 500 level.

“Given that one company New River Retail now have over 350 pubs from just two of the big 5 pubcos it would seem an appropriate time to review the level.

“It is also apparent that the 500 level put forward many years ago no longer reflects 1% of the market, as it is the number of pubs in the UK is widely reported to be well below 50,000 and if anything the de-minimus should be directly comparable to the numbers of pubs today.”

NewRiver’s property director Allan Lockhart told M&C Report​ that the company was committed to the tied model.

He said the company would be a hands on landlord and wanted to have a similar relationship with its pub tenants as it had with those in its shopping centre portfolios.

He said: “We are long-term investors. We are prepared to invest into our pubs to improve profitability.”