Pub prices plummet with north of England worst hit

By Luke Nicholls

- Last updated on GMT

Related tags: Price, England

The price of bottom end freehold pubs has fallen by 3.2 per cent nationally and 11.6 per cent in the north of England
The price of bottom end freehold pubs has fallen by 3.2 per cent nationally and 11.6 per cent in the north of England
The price of bottom end freehold pubs has fallen by 3.2 per cent nationally and 11.6 per cent in the north of England, according to Fleurets’ latest annual survey of pub prices.

The survey of pub prices by the property agency also reveals a significant increase in activity in the market for leasehold pubs and a ‘very inactive’ year for freeholds.

The decline in sale price for bottom end freeholds (those sold without accounts, often closed, vandalised or operational under temporary management or temporary tenant) reflects a willingness by many operators to conclude deals on problem sites at lower prices and an increase in low quality sites coming onto the market.

Key findings from the Fleurets survey include:

Bottom end freeholds

  • -3.2% decline in average sale price nationally
  • -11.6% decline in the North
  • +1% growth in the South
  • High Sales Volume Maintained
  • 54% of sales for Alternative (Non-Pub) use

Leaseholds

  • Sales Volume up 400% (from a very low base)
  • +16% increase in average sale price
  • Re-emergence of tied lease assignment market in the south

Freeholds

  • Increase in average National Sale Price
  • Limited volume of transactions continues
  • Increase in average Fair Maintainable Turnover

The year ahead...

Based on the above findingsd and from trends of previous years, Fleurets have predicted the following for pub prices under the three pub market types:

Bottom end freeholds

  • An increase in the average sale price in the north and the south.
  • Transaction volumes will remain high although at slightly lower levels than in previous years.
  • An increased viability of properties coming to the market will reduce the percentage of sites being sold out of the trade.

Leaseholds

  • The leasehold market in general will continue to be challenging, occasional significant deals will happen and the wider assignment market will continue to slowly improve, especially in the south.

Freeholds

  • It is difficult to see any significant change in the market activity in the next 12 months.

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1 comment

Is the problem in the NW bars v pubs?

Posted by Sarah Louise Dean,

Interesting news - I find that this does not apply to all parts of the country. Do you also agree with my article on the differences between North West pubs and bars?
I also saw the Fleurets survey but thought the message was more positive for wine bar owners and franchisees.

http://uk.businessesforsale.com/search/Pubs-for-sale/articles/Pubs-for-sale-cheaper-cleaner-and-greener

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