Freehold pub prices have fallen by more than 20% to an average of £537,000 in the last year and are set to drop further in 2009, according to a leading property agent.
Fleurets revealed in its annual price survey of all pubs sold for the year to 30 September 2008 and those currently being marketed that bottom-end freehold pubs dominated the market.
It said that 34% of Fleurets business was currently made up of bottom-end pubs, with 70% of these located in the Midlands and the North of England.
Barry Gilham, chairman of Fleurets, said that the value of bottom-end freeholds had fallen by around 10% over two years, with current asking prices likely to fall as low as £233,000, a third lower than in 2006.
Gilham said: “There will be a substantial fall in prices in 2009, as we're asking lower prices now than we achieved last year.”
He said that the pubcos, who had been the main buyers between 2000 and 2007 has largely pulled out of the market place since the introduction of the smoking ban, leaving more freeholds available.
He added that leasehold prices were still holding stable, although Gilham expected them to also fall.
