Michelle Perrett talks to Trevor Watson, director of special projects for Davis Coffer Lyons - specialist property advisers to the licensed, leisure and catering sectors.
What do you think are the major property issues facing the pub/bar industry today?
Ever-increasing legislation is a deterrent to innovation and market activity. The Disability Discrimination Act is changing the way operators view conversions of old buildings. Possible changes in the A3 use class to segregate larger pubs from restaurants would reduce flexibility for operators.
What is the current state of the property market?
Smaller multiples and independents have an insatiable appetite for quality property at present. With many major multiples scaling back their acquisition programmes there are terrific opportunities for large numbers of operators. Demand is strong.
What do you think the future property trends in the property sector will be?
We expect to see high levels of activity continue while the economic outlook remains stable. I think the trend towards quality food will lead to an increasing number of gastro-pubs. These will become the British equivalent of the continental bistro.
Do you think that licensing reform is likely to have any impact on the property sector?
It is already. When we have specific proposals the market will respond even more clearly. If capacity limits are introduced, town centre pubs could see a major re-distribution in trade leading to significant value changes. I believe the market will readily adapt to the abolition of the terminal hour, however, the introduction of operating plans could lead to greater fragmentation.