New rules to help pub tenants feeling the squeeze
2:09pm Thursday 5th June 2014 in News
Ceredigion MP Mark Williams has welcomed new rules unveiled by the Liberal Democrats which will help local pub tenants battling to pay rent or beer costs.
Landlords tied to large pub companies have said they are struggling to make a decent living, with more than half claiming they earn less than the minimum wage.
The Government will give landlords the right to request a rent review after five years, as well as set up an independent adjudicator with the power to resolve disputes.
Mr Williams said: “Local pubs and their owners play a vital part in vibrant local communities right across the county, as well as making an important contribution to the economy. But far too many landlords feel their income is squeezed by big pub companies. So, as a party we are taking action to make sure they get a fairer deal.”
Tied tenants have to buy beer from their owning company, and usually pay a higher price for it. This should be balanced out by subsidised rent or other benefits they may receive from their pub company, but this may not happen and rents can be too high. However, under the new code, pub landlords will benefit from fairer rent assessments.
“The introduction of a statutory code will make sure tied tenants get an accurate assessment of how better off they could be. Meanwhile, the new independent adjudicator will make sure pub companies are forced to act to redress the situation if they are not behaving responsibly.”
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