Pub prices plummet with north of England worst hit
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.
