Guidance

PCA Advice Note: Tied Rent Review Dispute Resolution Clauses and Disputes During the MRO Procedure

The following advice is issued to tied pub tenants (TPTs), pub-owning businesses (POBs) and their representatives, under section 60 of the Small Business Enterprise and Employment Act 2015.

• From: Pubs Code Adjudicator
• Published: 24 April 2020

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PCA Advice Note: Tied Rent Review Dispute Resolution Clauses and Disputes During the MRO procedure

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PCA Advice Note: Tied Rent Review Dispute Resolution Clauses and Disputes During the MRO Procedure

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The PCA has issued statutory advice addressing the use of a contractual dispute resolution clause during the market rent only (MRO) procedure to identify the tied rent upon a rent review where it cannot be agreed, after having invited industry observations on the matter. It replaces statutory advice issued by the PCA in June 2017 and subsequently withdrawn. It complements the statutory advice issued by the PCA in June 2019 regarding the operation of regulation 28 of the Pubs Code etc. Regulations 2016, which prohibits the recovery of rent increases after service of a MRO notice unless the tenant does not take the MRO option, and it also deals with related matters concerning the agreement of the tied rent in writing during the MRO procedure.

Published 24 April 2020