Average freehold pub prices have fallen by 34,7% post-coronavirus, according to Fleurets’ Survey of Pub Prices 2020.

The average freehold trading pub was £567,400 in Q2 and Q3 2020, down from £868,683 in the six months to March 2020.

However Fleurets said the sharp fall in value was distorted by a significant reduction in the like for like quality of assets sold compared to the prior year, as well as more transactions being in the north.

Following the lockdown, the leasehold sales market was badly affected, with transaction volume declining by 59% and the average sale price falling by 46% to £30,769.

Fleurets reports leasehold assignments were very limited and the sale price often represented little more than a payment for the fixtures and fittings.

The ‘fair maintainable turnover’ (FMT) declined by 25%, indicating a reduction in the quality of operation being transacted

Average prices in the south (-51%) fell more than the north (-38%) primarily as a result of a lager reduction in the FMT, -32% in the south and -12% in the north.

The large drop in FMT indicates a combination of factors, including more closed units, lower trading expectations and lower quality units.

Compared to 2019 the volume of activity post-covid was down -82% representing the stagnation of a large part of the leasehold market.

A higher proportion of leasehold units are wet led and in town and city centres and these areas have been most adversely affected by the pandemic.

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