Pub & Bar News Sponsored by Ditsch UK
The Green Room, an iconic pub in the West End of Edinburgh, has become one of the first pubs to move from a tied lease to free-of-tie, exercising new rights to a Market Rent Only (MRO) lease under the Scottish Pubs Code. This means that they can source their products and services independently. The Green Room celebrated this change with their “freedom party” that took place on the 11 February 2026, as well as announcing a significant reduction in the price of beer as a result of moving free-of-tie.
This result shows the Code in action and a transformative change for Scottish tied pub tenants, who acquired this right to request MRO leases from June 2025 onwards.
The Scottish Pubs Code Adjudicator, Sarah Havlin, said: “This news shows the Scottish Pubs Code in action, and it is great to see tied tenants and their customers benefiting from it. This is evident from the benefits that the Green Room have reported after moving to a Market Rent Only (MRO) lease. Granting new and effective rights for tied pub tenants was the reason why the Scottish Pubs Code was brought into force, providing them with flexibility and opportunities for growth.
“Not every tied pub tenant is eligible to seek an MRO lease. For those that are, the costs and benefits of remaining in a tie with a landlord or looking to move free-of-tie may vary. What is crucial is that there is a new business model that can be considered, more choice for tenants and, potentially, benefits to customers.”
“This case shows the Scottish Pubs Code in operation, and as the first Scottish Pubs Code Adjudicator, I am delighted to see the results of the Code creating a more equal playing field in the pub industry. It is clear that effective communication between landlord and tenants is key for a successful Market Rent Only (MRO) lease. This forms the key elements of any successful tenant and landlord relationship.”
The Scottish Pubs Code regulates the relationship between pub owning businesses and tied pub tenants. The Code came into force on 31 March 2025, with the right to request a Market Rent Only (MRO) from 30 June onwards, allowing eligible tenants to seek to move free of tie.
Sarah Havlin is the Scottish Pubs Code Adjudicator and was formally appointed in June 2024. She is responsible for overseeing and enforcing the Scottish Pubs Code Sarah is a solicitor by profession, with has extensive experience in contentious litigation, regulation, commercial dispute resolution, employment law and industrial relations. Her expertise reflects years of practice handling complex legal cases and navigating regulatory challenges. Sarah’s career experience demonstrates a strong track record of acting impartially, upholding standards and ensuring fair dealings.
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