9 April 2026

Ale be seeing you later – Star Pubs v Gunmakers Arms [2026]

A landlord can oppose the renewal of a business tenancy under the Landlord and Tenant Act 1954 on several defined grounds – one of these grounds applies if the landlord is able to demonstrate that it intends to occupy the premises to carry on a business itself (ground (g) of section 30(1) of the 1954 Act).

If a landlord instead intends to have a third party operate a business under a management agreement, would that suffice as “own occupation” for the purposes ground (g) of the 1954 Act?   

Yes – at least on the facts of the recent Central London County Court case of Star Pubs Trading Limited v Gunmakers Arms (Essex) LLP.

The Gunmakers Arms in Loughton had been occupied and run by the Defendant, the tenant, for over 10 years. 

The landlord, Star Pubs, intended to “occupy” the premises itself by using its standard model management agreement (referred to as “Just Add Talent”), which provided that the operator would run and manage a public house from the premises. This agreement extended to the operator physically occupying and running the business and making use of equipment and furniture, in exchange for a management fee (comprising a base fee and a top-up, derived from the pub’s revenue and share of its profit).

Would this arrangement satisfy the test of whether the landlord would occupy the premises for its own business purposes, or would the effect of the management agreement simply be that the operator carried on its own business?

The Court was persuaded by the significant level of control the landlord would retain over the pub: the agreement provided that Star would enter into all commercial contracts rather than the operator (save the employment contracts of staff), and Star would set the prices of items sold at the pub. 

There was also to be a lengthy and prescriptive “Manual” setting out in minute detail strict controls on how the pub must operate, including as to the management of stock and cash, the marketing of the pub and the hours of service of food. The principal financial risk would remain with Star, as would responsibility for licencing. 

There would be very little room for manoeuvre to conclude that the business would belong to anyone but Star.

In its pint-sized judgment, the Court concluded that by virtue of the detailed terms of the management agreement, Star would indeed occupy the premises to carry on its own business, regardless of the fact that in practice it would be managed by the operator. 

 

 

This case does not reveal any new law on ground (g), but it is an interesting example of the analysis the Court will employ in deciding how far a landlord’s “own” occupation may stretch.

Subscribe to our latest insights by topic here.

Tom Mills Tom Mills Senior Associate, Real Estate Disputes

Recent Insights