Boost to community pubs as review of restrictive covenants launched

Community pubs minister Bob Neill has launched a review of restrictive covenants - a legal clause that can be used to prevent community pubs reopening as public houses following a sale.

Between 2004 and 2009 some 572 pubs are said to have been permanently lost following a sale with a restrictive covenant, potentially depriving thousands of regulars of an important community asset.

A covenant can have a double whammy effect, not only taking away a vital community hub but also preventing local people from being able to step in and revive their 'local' as a community run asset. By changing the use of certain restrictive covenants, communities would be given greater opportunities to use the new 'Community Right to Buy' power in the Localism Bill, which gives local communities the chance to take over and run much-loved local assets, such as the 'local', when they come up for sale.

Bob Neill said: "Pubs are hubs of community life, as important to the local social scene as they are to the local economy. Throughout their rich and diverse history they have proved themselves to be resilient, enterprising and full of initiative. But time is being called at too many of our 'locals', depriving people of treasured places to get together in the community.

"We are putting the people back in charge, giving them the power to step in and save their much loved community assets. Communities across the country are already stepping in to save their pub from closure. By reviewing this restrictive red tape we are giving people another opportunity to use their collective powers to ensure that their locals remain local and continue to thrive at the heart of the community."