Rent under a Market Rent Only (MRO) compliant tenancy and Independent Assessors

What information should be provided to me with the MRO rent offer?

The PCA has issued Guidance on clarity in the MRO procedure to Pub-owning Businesses (POBs) to ensure a fair and consistent approach. This Guidance sets out the PCA’s expectations as to information in support of the MRO rent offer that the POB must provide you. 

Based on the information provided by your POB, you should be able to understand how the proposed MRO rental figure has been calculated, including the reason for any assumptions and disregards involved in the calculation. 

I do not agree with the POB’s proposed MRO rent. What can I do? 

You and the POB must first try to reach an agreement on the MRO rent. Where you cannot agree, you can ask an Independent Assessor (IA) to determine the market rent. 

Making a referral to an IA can add time and cost to the MRO procedure. It may be preferable for the parties to reach an agreement on the MRO rent. 

If you are unable to reach agreement with your POB on the MRO rent, and you want to ask an IA to determine the market rent, you must notify the POB in writing that you intend to do this. 

Strict time limits apply for making a referral to an IA. Please check the  – Market Rent Only Rights factsheet for more information on these time limits.

After notifying the POB in writing that you intend to refer the MRO rent to an IA, within 28 days of the POB receiving the notice, you and the POB must:

 a) Jointly appoint an IA; or

 b) Notify the PCA in writing that you have failed to make an appointment. The PCA must then appoint an IA within 14 days and notify you and the POB of this appointment. 

Guidance on the PCA process for appointing an Independent Assessor and the notification form are available on our website.

An IA must meet the PCA’s criteria (whether appointed by the parties or the PCA). A list of IAs who meet the criteria and guidance on fees is available on The Royal Institution of Chartered Surveyors’ website: www.rics.org.

The POB and I have jointly appointed an IA. What happens now?

Within 28 days (starting the day after the IA is appointed) you must give the IA: 

a) The proposed MRO tenancy. 

b) All documents you hold from those listed in Schedule 3 to the Code. 

c) Other information you think is relevant to the determination.

Within the same 28 days: 

• the POB must also provide documents and information in line with b) and c) above The PCA’s Guidance on clarity in the MRO procedure sets out the PCA’s expectation that this information will include the POB’s approach to any tenant’s improvements. 
• information you and the POB provide to the IA under b) and c) should also be provided to each other. 

You and the POB must also: 

• comply with any reasonable request by the IA for information or documents you hold which the IA considers relevant for the determination; and 
• provide any such information or documents to the IA and to each other as soon as reasonably practicable.

What are the documents in Schedule 3 to the Code?

I have received the IA’s determination of the market rent. What must I do next? 

You must accept or reject the IA’s determination of the market rent (and the associated tenancy) in writing to the POB, within 21 days of it being communicated to you*. 

*If a rent assessment (or assessment of money payable instead of rent) is still in progress at the end of the 21 days, you have until the date this assessment ends to give the above notification. 

If you do not notify the POB of your decision in time, you will be treated as having rejected the IA determination and the associated tenancy. 

Note: the above applies unless you or the POB have referred the IA determination for arbitration (see next section).

I disagree with the IA’s determination, or I have not received the IA’s determination. What can I do?

You or the POB can make an arbitration referral if either of you think one or more of the following applies: 

• The determined rent is not the market rent. 
• The IA in making their determination has not had regard to the Schedule 3 documents provided to them. 
• The IA has not conducted the procedure in accordance with the PCA’s guidance for IAs. 
• The IA has not communicated their determination within 21 days, starting the day after the 28-day period in which information must be provided to them.

You (or the POB) must make your referral within 14 days of the date the IA’s determination is communicated to you. 

If you have not received the IA’s determination, you must make your referral within 14 days of the date it should have been communicated to you.

You can find a helpful flowchart which shows the IA process on our website.

The Chartered Institute of Arbitrators, who administers Pubs Code arbitrations has published information about making an arbitration referral

I (or the POB) do not agree with the IA’s determination and have referred it for arbitration. What could happen?

If the arbitrator decides the alleged failure has occurred: 

The arbitrator must explain, in writing, why the failure has occurred. Then, having regard to the nature of the failure, the arbitrator must do one of the following:

• Substitute a figure for the market rent and explain why. That substituted figure is final. 
• Direct the IA to make a second determination of the market rent in light of the arbitrator’s explanation as to why the failure has occurred. 
• Make another determination the arbitrator considers appropriate, which may in exceptional cases be for the appointment of another IA to assess the market rent.

Where the arbitrator directs the IA to make a second determination of the market rent, the IA must do this within 21 days, starting the day of the arbitrator’s direction.

Where the arbitrator appoints another IA to assess the market rent, the IA must determine the market rent within 21 days of the arbitrator’s appointment.

You must accept or reject any determination or substituted market rent figure (and the associated tenancy) in writing to the POB, within 21 days of it being communicated to you*. 

*If a rent assessment (or assessment of money payable instead of rent) is still in progress at the end of the 21 days, you have until the date this assessment ends to give the above notification. 

If you do not notify the POB of your decision in time, you will be treated as having rejected the determination or substituted market rent figure, and the associated tenancy. 

Note: the above applies unless you or the POB have made another arbitration referral on any IA determination you have received as a result of the first arbitration. 

See section: I do not agree with the IA determination that I received as a result of my arbitration referral. What can I do? 

If the arbitrator decides the alleged failure has not occurred:

You must accept or reject the original IA determination (and the associated tenancy) in writing to the POB, within 21 days of the arbitrator’s determination being communicated to you*. 

*If a rent assessment (or assessment of money payable instead of rent) is still in progress at the end of the 21 days, you have until the date this assessment ends to give the above notification.

 If you do not notify the POB of your decision in time, you will be treated as having rejected the IA’s determination and the associated tenancy.

The IA has not communicated their determination within 21 days and I (or the POB) have referred it for arbitration. What could happen?

The arbitrator must do any of the following: 

• Direct the IA to make their determination of the market rent and specify when they must do this. 
• Appoint another IA to determine the market rent (the arbitrator will make this appointment within 14 days of the matter being referred). 
• Decide that the IA requires additional information to determine the market rent and require you or the POB to provide this. The arbitrator will then direct the IA to complete the determination and specify when they must do this. 

You must accept or reject the IA determination (and the associated tenancy) in writing to the POB, within 21 days of it being communicated to you*.

*If a rent assessment (or assessment of money payable instead of rent) is still in progress at the end of the 21 days, you have until the date this assessment ends to give the above notification. 

If you do not notify the POB of your decision in time, you will be treated as having rejected the IA determination and the associated tenancy. 

Note: the above applies unless you or the POB have referred the IA determination for arbitration (see next section).

I do not agree with the IA determination that I received as a result of my arbitration referral. What can I do?

You or the POB can make another arbitration referral if either of you think one or more of the following applies:

• The determined rent is not the market rent. 
• The IA in making their determination has not had regard to the Schedule 3 documents provided to them. 
• The IA has not conducted the procedure in accordance with the PCA’s guidance for IAs. 

Either you or the POB must refer the matter back to arbitration within 14 days of the determination being communicated to you. 

The arbitrator may then make a final determination of the market rent within 21 days of the referral. 

You must accept or reject the arbitrator’s final determination (and the associated tenancy) in writing within 21 days of the determination being communicated to you*.

*If a rent assessment (or assessment of money payable instead of rent) is still in progress at the end of the 21 days, you have until the date this assessment ends to give the above notification. 

If you do not notify the POB of your decision in time, you will be treated as having rejected the final determination and the associated tenancy. 

More information about Pubs Code Disputes can be found here.

For general queries about the information in this factsheet, you may contact our enquiry service. 

Please note, we can provide information about your rights, the Code and our processes. We cannot advise you about your case. 

Complete our online enquiry form 

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This factsheet provides information to support tenant understanding. It is not a substitute for the Pubs Code framework. Our website contains other useful information about accessing your Pubs Code rights and the PCA’s role as regulator in enforcing those rights. 

You may find it helpful to take independent professional advice before making any decisions that may affect you and your business.

Last updated: March 2025