Pub alternative use market slowdown
The demand for pubs being bought and converted for alternative use has declined over the past year.
Number of pubs sold for alternative use has reduced over past year
That's the view of a number of agents, who say the downturn is in line with current trends in the housing market.
Fleurets director Simon Hall said: “Sales for residential development have reduced considerably over the past 12 months — something that I’m sure reflects the general state of play.”
Simon Chapin, director at Christie+Co, agreed: “There is an appetite for alternative-use sites, with a small number still changing hands. However, this has diminished in line with the downturn elsewhere.”
“Developers are not such a strong force now and we are seeing values for alternative development declining,” said Savills director Kevin Marsh.
The agents said there were a number of misconceptions about the alternative-use market.
“Many people think these sites are operating pubs being sold for a much higher price. In reality, they are often closed and boarded-up properties that have reached the end of their economic life as a pub,” said Hall.
The agents also said small or local pubcos were buying pubs in order to prevent them being sold to developers.
Hall said: “Local or regional pubcos and private operators have a better understanding of the local area and its needs.
“They can apply cost savings to make the pub prosperous.”
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