Punch Taverns, the second largest pub operator in Britain by number of pub estates, said pub reforms that came into effect in the UK in July are having a negative impact on letting activity in the first half of its new financial year.

Publicans tied to Britain’s big pub companies, such as Enterprise Inn and Punch Tavern, were given greater powers to challenge rent prices and have a new independent adjudicator to turn to in disputes, under the new pubs code that came into force on July 21st.

Punch, which operates around 3,300 pubs across the country, said that the impact was on near-term trading, but expectations for the longer-term growth remain unchanged.

Punch said average profit per pub across the entire estate for the full-year was up 4 per cent helped by disposal of non-core pubs.

– (Reuters)