The Pubs Code etc. Regulations 2016[1] were introduced by the UK Government as part of the Small Business Enterprise and Employment Act 2015.[2] The code was passed on 14 June 2016[3] and implemented on 21 July 2016.[4]
The code regulates the relationship between pub tenants and the large pub owning companies, known as pubcos. A pubco rents out a pub to a tenant and then sells them the pubs supplies, known as tied products. This makes the pub what is called a Tied house. The tenant is obligated to buy these supplies from the pubco.
The code establishes the right of a tied tenant to take a free of tie rent option at certain trigger points, known as the Market Rent Only (MRO) option. The code also mandates that the affected pubcos must provide information to new tenants on how the landlord / tenant relationship is conducted.
The code applies only to tenants of pubcos owning over 500 pubs The regulated pubcos are:[5]