2025 Scottish Pubs Code Reshapes Edinburgh’s Trade
A new era of fairness and transparency is dawning for pub tenants across Scotland. The arrival of the 2025 Scottish Pubs Code is set to level the playing field between pub-owning businesses and their tenants. For those running or looking to run a pub in the vibrant city of Edinburgh, understanding these new regulations is crucial. This article provides a comprehensive overview of what the new Code entails, your rights as a tenant, and where to turn for expert advice.
What Is the New Scottish Pubs Code?
After industry consultations, the Scottish Pubs Code came into force on 31 March 2025. From 30 June 2025, tied pub tenants can request a Market Rent Only (MRO) lease at the half-way point of their tenancy agreement, with the process able to start 6 months before the half-way point. The Scottish Government’s aim with the Code is to ensure fair and lawful dealing by pub-owning businesses in relation to their tied pub tenants and that tied pub tenants should not be worse off than they would be if they were not subject to any product or service tie. At its core, the Code is built on three key principles:
- Fair and lawful dealing: This principle governs the conduct of pub-owning businesses, ensuring they act in good faith with their tenants.
- No worse off: Tied pub tenants should not be financially disadvantaged compared to their free-of-tie counterparts.
- Fair sharing of risk and reward: The tenancy agreement should balance the risks and rewards between the tenant and the pub-owning business.
Overseeing the implementation and enforcement of this new legislation is the Scottish Pubs Code Adjudicator, Sarah Havlin, who has the power to adjudicate disputes and investigate potential breaches of the Code.
Key Rights for Tenants: A New Chapter for Edinburgh’s Publicans
The 2025 Scottish Pubs Code introduces several significant rights for tenants, empowering them to make informed decisions and operate their businesses more effectively.
Market Rent Only (MRO) Leases
This is arguably the most transformative aspect of the new Code. Eligible tied tenants now have the right to request an MRO lease. This means they can opt to pay a market-based rent for their pub, freeing them from the obligation to buy beer and other tied products from the pub-owning business. This “free-of-tie” option allows tenants to source their own products, potentially leading to better profit margins. The process for requesting an MRO lease involves serving a formal notice to the landlord, followed by a statutory timetable for negotiations. If the parties cannot agree on the rent or terms, an independent rent assessor or the adjudicator may intervene.
Guest Beer Agreements
Tenants now have the right to sell at least one guest beer of their choice, even if they remain in a tied agreement. The only stipulation is that the guest beer must come from a brewer with a production capacity of less than 5,000 hectolitres per year. This allows tenants to offer a greater variety to their customers and support local or craft breweries.
Increased Transparency
The Code mandates that pub-owning businesses provide prospective tenants with a wealth of information to ensure they can make an informed decision. This includes:
- A draft lease proposal outlining the terms of the agreement.
- A rent assessment statement with a profit and loss forecast.
- A Schedule of Condition for the premises.
- Details of any costs and charges the tenant will be responsible for.
- Information on gaming machines and flow monitoring devices.
Navigating Tied Pub Regulations in Scotland
A “tied pub” is one where the tenant is contractually obliged to buy some or all of their products from the landlord or a nominated supplier. The 2025 Scottish Pubs Code is a direct response to concerns that this model can lead to tenants paying inflated prices and having limited control over their business. By introducing the MRO option and guest beer rights, the Code gives tied tenants in Edinburgh and across Scotland greater flexibility and a fairer deal.
👉 Read more: Introducing MDE Pubs Consultants
MDE Pub Consultants Provides Expert Pub Lease Advice in Edinburgh – Scotland
The new regulations can be complex, and navigating them effectively can be challenging. Seeking professional advice from pub lease experts is highly recommended to ensure you understand your rights and can leverage them to your advantage. MDE Pub Consultants offers a range of services specifically tailored to the Scottish pub sector:
- Pubs Code & Market Rent Only in Scotland: Our experts can provide clear, actionable advice on your rights and options under the new legislation. We can help you understand the implications of an MRO lease for your specific business and guide you through the transition process.
- Representing Tenants: We are committed to ensuring tenants are fully aware of the changes in the Scottish Pubs Code. Should a dispute arise with your landlord, our team can represent you, ensuring your case is presented effectively to the adjudicator.
- Sustainable Business Strategies: Whether you are considering moving from a tied lease to a free-of-tie model or seeking to leverage the MRO option for a more sustainable business, we can help you develop a clear and effective strategy.
- Industry Credibility: MDE Pub Consultants is not a generalist business advisor – we are specialists in the pub sector. Our lead consultant, Michael Erridge, is a seasoned professional with a decade of experience in the Pubs Code in England & Wales, pub operations, leasing and valuation. This experience means we offer well-rounded advice that considers both commercial and legal factors. You can trust our guidance, knowing it’s rooted in real-world pub industry knowledge.
The Scottish Pubs Code is a landmark piece of legislation that will reshape the landscape of Edinburgh’s pub trade. By understanding its provisions and seeking the right support, the city’s publicans can not only navigate this new environment but also thrive within it, securing the future of these vital community assets for years to come.
For expert advice on the Scottish Pubs Code and your tenancy, contact us for a confidential discussion today.
Email: info@mdepc.co.uk
Phone: 0330 088 3133
