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PCA Report Shows Need For Clarity To Avoid Further Operator Costs

The ALMR has responded to the Pub Code Adjudicator’s (PCA) report into the Market Rent Only Verification Exercise, by calling for more clarity and guidance to smooth the process for all parties and avoid unnecessary costs for all operators.

The report showed that nearly 500 MRO notices had been served by pub tenants to their landlord, with 11 MRO tenancies agreed and over 130 referrals to the PCA from July 2016 to April 2017.

Kate Nicholls, ALMR’s CEO, said: “It is inevitable that new legislation brings new challenges and the PCA has been given a clear role to oversee its implementation. As it stands, delays and uncertainty are piling costs onto operators.

“The ALMR’s 2017 benchmarking report shows that nearly two-thirds (63%) see a role for the tied model, so it is obviously vital that structures are in place to efficiently and equitably handle MRO cases.

“Yet the overriding message from the report is that, more than a year in, there are still too many grey areas in the process. It needs to deliver assured, decisive action to benefit all parties in disputes. Delays in the process only create unwelcome uncertainties.

“We would welcome a more proactive and conciliatory approach from pub operators. It’s clear that there are some uncommon practices taking place and it’s important that the PCA gives clear guidance on what is legal and acceptable within the spirit of the Code, and to do so at the very earliest opportunity.”

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