The leasehold pub market has been “decimated” in the last 12 months, according to a leading property agent.
Fleurets said it meant there had been fewer assignments and prices for those that were sold were 50% lower than those achieved in the previous 15 years - at an average of £48,000.
On the freehold front Fleurets said successful operators were hanging onto their pubs, with the main activity coming from pubcos selling off what was often closed or vandalised stock. Average freehold prices were around the £200,000 mark, although there were wide regional variations.
Barry Gillham, chairman of Fleurets, said: “It would be fair to say that the leasehold market has been decimated over the last 12 months, resulting in fewer assignments and those that have sold. Achieving price of around 50% of those that pertained for the previous 15 years.
“Bad news in the press, declining profit margins and a gindingly slow assignment process have combined to cause this very poor market.”
Discussing freeholds,Gillham said: “For the second year running, the majority of freehold sales have originated from the pubcos disposing of former leased and tenanted pubsm and in the main, sold without trade figures.
“A large percentage of the sales have gone to alternative use, with retailers from other sectors identifying empty pubs as generally large plots, with huge potential, at below average prices.”
