Pubs Code for tied tenants

If you're a tied pub tenant with one of the six regulated pub-owning businesses (POBs), you have rights under the Pubs Code. The Code ensures you're treated fairly and can choose to go 'free of tie' through the Market Rent Only (MRO) option.

This guide explains your rights and how to exercise them.

Understanding the Pubs Code

Pubs Code overview

Overview of the Pubs Code regulations protecting tied pub tenants

The Pubs Code etc. Regulations 2016 protect tied pub tenants in England and Wales. The Code applies to pub-owning businesses (POBs) with 500 or more tied pubs.

The core principle is fair dealing: tied tenants should be no worse off than free-of-tie counterparts. The Pubs Code Adjudicator (PCA) enforces compliance and resolves disputes.

Threshold: 500+ tied pubs
Commencement date: 21 July 2016
Geographic scope: England and Wales only
Tied tenants covered: Approximately 12,000 tenants
Current Adjudicator: Fiona Dickie (since May 2020)

Pubs Code Adjudicator guidance

Does the Pubs Code apply to you?

Yes, if:

You have a tied tenancy or lease with a regulated POB
Your pub is in England or Wales
Your POB owns 500+ tied pubs

No, if:

Your pub company owns fewer than 500 tied pubs
You're in Scotland (separate Scottish Pubs Code from March 2025)
You're in Northern Ireland (no Pubs Code)
You have a free-of-tie lease

Regulated pub companies

Regulated pub-owning businesses

The pub companies currently regulated under the Pubs Code

Six pub-owning businesses (POBs) are currently regulated under the Pubs Code:

Admiral
Greene King
Marston's
Punch Pubs
Star Pubs and Bars
Stonegate

Each POB must appoint an independent Code Compliance Officer to verify compliance.

Regulated POBs: 6 companies
Maximum PCA fine: £2,000,000 (Star Pubs fined October 2020)
PCA annual running cost: Approximately £1,600,000 (paid by levy on pub companies)

Market Rent Only (MRO) option

MRO lets you go free of tie and pay market rent instead.

Market Rent Only (MRO) option

Tied tenants' right to request a free-of-tie lease at market rent

The Market Rent Only (MRO) option allows tied tenants to request a free-of-tie lease at market rent. MRO can be requested within 21 days of one of four trigger events:

Rent assessment proposal received from POB
Renewal of pub agreement or tenancy
Significant price increase in tied products or services
Trigger event with significant impact on trade (beyond tenant control)

An MRO tenancy contains no tie of any kind - no product, service, or gaming machine tie.

MRO request deadline: 21 days from MRO event
MRO lease minimum term: At least remainder of tied agreement
Price increase comparison: Current 4-week period vs same period 12 months ago

PCA Market Rent Only guidance

When to request MRO

Watch for these MRO trigger events:

Rent assessment proposal: When your POB sends a RAP
Lease renewal: When your agreement comes up for renewal
Price increase: When tied product prices rise significantly
Trigger event: Unexpected event affecting your trade (not your fault)

You have 21 days from the event to request MRO in writing.

Rent assessment process

Your POB must follow specific rules when assessing your rent.

Rent assessment requirements

Requirements for rent assessment proposals under the Pubs Code

POBs must provide rent assessment proposals (RAPs) meeting specific requirements:

Provided at least 6 months before cyclical rent review date
Prepared per RICS guidance with written confirmation from RICS member
Tenant can request rent assessment if none concluded in last 5 years

If parties cannot agree rent, an Independent Assessor determines market rent (costs shared equally).

RAP advance notice: At least 6 months before rent review date
5-year right: Can request assessment if no review for 5 years
IA appointment period: 28 days to agree, otherwise PCA appoints
IA determination response: 21 days to accept or reject (no response = rejection)

Challenging a rent assessment

If you disagree with the proposed rent:

Negotiate directly with your POB
If no agreement within 28 days, request an Independent Assessor
IA determines market rent (costs shared equally)
You have 21 days to accept or reject the determination

Remember: No response within 21 days counts as rejection.

Business Development Manager requirements

Requirements for POB Business Development Managers under the Pubs Code

POBs must comply with specific requirements regarding Business Development Managers (BDMs) and their interactions with tenants:

BDM must provide written record of discussions within 14 days
Tenant has 7 days to dispute the record
Cannot rely solely on flow meter readings without additional evidence
POBs must provide 37 distinct information categories pre-agreement

Record provision deadline: 14 days to provide record of discussions
Tenant dispute period: 7 days to dispute record
Pre-agreement disclosure: 37 distinct information categories (Schedule 1)

Pubs Code regulations Schedule 1

Protecting yourself

Keep records: Note dates and content of all BDM meetings
Check BDM records: Review written records within 7 days
Dispute inaccuracies: Challenge any errors promptly
Flow monitoring: POB cannot penalise you based solely on flow meter readings

Raising disputes with the PCA

PCA enforcement powers

Pubs Code Adjudicator enforcement and arbitration powers

The Pubs Code Adjudicator has powers to:

Arbitrate disputes between tied tenants and POBs
Investigate suspected breaches of the Pubs Code
Issue financial penalties for non-compliance
Require compliance with Code requirements

Complaints about PCA service can be escalated to the Parliamentary and Health Service Ombudsman after receiving a final response letter.

Maximum financial penalty: £2,000,000 (highest to date)
Arbitration managed by: Chartered Institute of Arbitrators
Appeal route: High Court (specific legal grounds only)

PCA complaints procedure

When to contact the PCA

Your POB denies an MRO event occurred
You believe your POB has breached the Code
You cannot agree MRO terms with your POB
Your POB's rent assessment doesn't comply with requirements

Arbitration is managed by the Chartered Institute of Arbitrators on the PCA's behalf.

Scottish Pubs Code

Scotland has its own Pubs Code from March 2025.

Scottish Pubs Code

Separate Pubs Code regime for Scotland from March 2025

Scotland has its own Pubs Code regime under the Scottish Pubs Code Regulations 2024, with staged implementation from 31 March 2025. Key differences from England and Wales:

Guest beer rights: Tied tenants can offer guest beer from small brewers
MRO timing: Can request MRO at any time (with minor exceptions)
Flow monitoring: Not required on guest beer line without tenant consent

Commencement date: 31 March 2025 (staged implementation)
Maximum financial penalty: 1% of annual UK group turnover
Guest beer provision: Allowed alongside tied products

Scottish Pubs Code statutory review

Business Context Testing

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Pubs Code for tied tenants

Understanding the Pubs Code

Does the Pubs Code apply to you?

Regulated pub companies

Market Rent Only (MRO) option

When to request MRO

Rent assessment process

Challenging a rent assessment

Business Development Manager requirements

Protecting yourself

Raising disputes with the PCA

When to contact the PCA

Scottish Pubs Code

Compliance Assistant

🧪 Business Context Testing

◉ Content Graph

Understanding the Pubs Code

Does the Pubs Code apply to you?

Regulated pub companies

Market Rent Only (MRO) option

When to request MRO

Rent assessment process

Challenging a rent assessment

Business Development Manager requirements

Protecting yourself

Raising disputes with the PCA

When to contact the PCA

Scottish Pubs Code

Related guides in Leasing Property

Business Context Testing

Content Graph