The year 2025 marks a significant turning point for tied pub tenants across Scotland. Following the Tied Pubs (Scotland) Act 2021, the Scottish Pubs Code Regulations 2024 are now coming fully into effect. These new Pubs Code regulations introduce crucial rights designed to create a fairer relationship within Scottish pub tenancy law. Understanding these changes, particularly the key provisions activating in 2025, is essential for every tied tenant operating north of the border.
This article outlines the core elements of the Pubs Code Scotland, details what’s changing in 2025, and discusses how tenants can navigate this new landscape, potentially with expert support from Pubs Code experts, such as MDE Pub Consultants.
The Scottish Pubs Code Explained: A New Framework for Fairness
Unlike its counterpart in England & Wales, the Scottish Pubs Code applies to all tied pub agreements in Scotland, regardless of the landlord’s size. This offers protection to a wider range of tenants.
The code is built on three core principles:
- Fair and lawful dealing by PubCos.
- Tied tenants should be no worse off than if they were free-of-tie.
- Fair sharing of risks and rewards between tenants and PubCos.
Overseeing the code is the independent Scottish Pubs Code Adjudicator (SPCA), Sarah Havlin, appointed in June 2024. The SPCA enforces the code, handles disputes through arbitration, and investigates breaches.
Key Changes & Implementation in 2025
2025 sees the activation of the most impactful provisions of the Scottish Pubs Code:
Guest Beer Agreement (Effective March 31st, 2025)
This is a landmark right exclusive to Scotland. Tied tenants can now request an agreement allowing them to sell at least one guest beer of their choice.
- Tenant Choice: You choose the beer brand (as long as its annual production is 5,000 hectolitres or less), the format (cask, keg, bottle, can), and the selling price.
- Process: Requests must be made in writing to the PubCo, who must offer an agreement within 4 weeks unless one already exists.
- Support: A new portal (www.guestbeer.co.uk) launched by SIBA helps tenants verify if a beer brand meets the production criteria. The SPCA has also published guidance on this.
Market Rent Only (MRO) Lease Option (Effective June 30th, 2025)
From this date, eligible tied tenants gain the right to request a Market Rent Only lease – essentially breaking the tie and paying an independently assessed market rent.
- Timing: Tenants can request MRO up to 6 months before reaching the halfway point of their lease.
- Process: The code outlines the MRO process for pub tenants, including rent assessment and appeals.
- Exemptions: Apply for short leases, recent requests, notice to quit, specific investments.
Enhanced Information & Fairness (Effective March 31st, 2025)
Increased transparency, including mandatory provision of a detailed Schedule of Condition.
The Role of the SPCA in 2025
The code mandates increased transparency. PubCos must provide prospective tenants with comprehensive information packs, including details on pre-entry training, lease terms, rent assessment data, and significantly, a detailed Schedule of Condition for the premises, which must be considered during repair discussions.
Navigating the New Landscape: Advice for Scottish Tied Tenants
This new era under Scotland pub lease law requires tenants to be proactive:
- Know Your Rights: Understand your Pub tenant legal rights, especially regarding Guest Beer and MRO timing/eligibility.
- Review Your Lease: Identify key dates for rent reviews and the MRO window.
- Engage with Your PubCo: Communicate requests formally in writing.
- Understand Deadlines: Strict time limits apply to MRO and dispute referrals.
- Seek Expert Advice: The complexity warrants support for fair rent negotiations for pubs and understanding the Pubs Code regulations. Expert pub tenant rent advice can be invaluable, potentially leading to rent reduction for pubs where justified.
Expert Support for Scottish Pub Tenants: MDE Pub Consultants
Navigating new legislation and lease negotiations requires specialist expertise. MDE Pub Consultants dedicated Pubs Code consultants and Pubs Code experts focused on the UK pub sector. With an office in Edinburgh, we offer services highly relevant to Scottish tenants under the new code:
- Pubs Code (Scotland) Advice: MDE Pub Consultants provide guidance specifically for the Pubs Code Scotland, helping tenants understand their rights and navigate new processes like Guest Beer and MRO.
- Pubs Rent Reviews: As new rules apply from June 30th, MDE Pub Consultants offer expert analysis and negotiation support for fair rent outcomes in Scotland. This includes crucial pub tenant rent advice.
- Pubs Lease Renewals: MDE Pub Consultants provide strategic advice and negotiation expertise for pub lease renewals in Scotland, critical trigger points often linked to MRO options, also assist with fair rent negotiations for pubs.
MDE’s pub industry consultancy combines understanding of PubCo tactics with knowledge of lease law principles, offering invaluable strategic support
Leveraging Your New Rights Under the Scottish Pubs Code
2025 marks a major shift for Scottish tied tenants as the full Scottish Pubs Code takes effect, granting crucial pub tenant legal rights like the Guest Beer Agreement and the Market Rent Only lease option. Being informed and proactive is key to benefiting from these powerful changes. However, navigating the specifics of pubs rent review, pubs lease renewal, or MRO lease negotiations under the new pubs code regulations requires expertise.
Contact MDE Pub Consultants today to understand your options under the new code and secure a stronger, more autonomous future for your pub.
Email: info@mdepc.co.uk
Phone: 0330 088 3133
