got spring in its step
Despite a wet and sluggish summer last year, the region's pub market is blossoming thanks to spring and thriving tourism. TONY HALSTEAD reports
The vagaries of the tourism industry seem to pose no barrier to a vibrant pub property market in the west country as reports reveal there is a healthy demand for leased and freehold properties. Licensed trade surveyors and agents report keen interest in both urban and rural area properties, with key tourist areas still able to demand premium prices.
Although the barometer of economic success in Devon and Cornwall still swings heavily on the ups and downs of the tourism market, other areas are less reliant on the number of visitors who pass through during the summer months. "Tourism is still highly important and many may still view the west country as a region abounding with thatched-roof pubs located beside idyllic village duck ponds but that is only a small part of the story," explains Chris Irving, sales associate with licensed property specialists Fleurets.
"In towns such as Yeovil and Taunton where tourism is less important you are dealing with the usual mix of town-centre houses, community-style pubs and beer-house style outlets.
"The west country is no different to other parts of the UK where the stock of freehouses is falling and leaseholds increasingly hold sway in the market," he says.
Irving reports that the average west country leasehold pub changed hands for about £84,000 last year and this figure will almost certainly rise this year.
Freehouses can change hands for anything between £300,000 and £600,000, with quality properties fetching as much as £950,000.
"The pubcos are just as active in this region as anywhere else in the UK," says Irving, "so it means we are heavily involved in lettings and lease assignments," he says. "In general terms the west country market is holding up very well and demand is definitely there."
After the bumper summer of 2003, which saw the region enjoy its best season for years, last summer was not quite as good in weather terms.
However, tourism is on the up in Devon and Cornwall, which appears to have survived the onslaught of the Spanish "costa holiday syndrome" of the '70s and '80s better than most UK regions.
More people holidaying in the UK and better standards of accommodation in west country hotels still makes the region one of the country's top holiday destinations.
Away from the tourist belt the market has tended to ebb and flow, thanks to a number of different factors.
"At the start of 2005, the pub market in the west country took a little time to pick up, after such a buoyant and highly-successful 2004," says Nicholas Calfe from the Bristol office of surveyors, valuers and agents Christie & Co.
"However, during the first two months of 2005, the Bristol office secured a substantial number of new instructions, but with the housing market slowing a little, buyers have become more price sensitive."
"Now that spring is upon us, the market is certainly gathering pace with good quality businesses attracting interest and selling quickly in both the freehold and leasehold sectors."
Calfe adds: "An example of this occurred at the beginning of March, where a sale was agreed for the Bell Inn in the village of Great Cheverell near Devizes in Wiltshire. It was sold for an undisclosed sum off an asking price of £465,000 within days of coming onto the market.
"First-time buyers, a mother and daughter, Gill and Sara Currie, who had been seeking a lifestyle change, were introduced via the Channel 4 programme, Relocation, Relocation. Their success story will be shown in the new series starting soon."
Michael Eaton, of Christie & Co's Exeter office, comments: "The west country pub market has been relatively slow in the first quarter of 2005, but with the early Easter, it now seems to have turned the corner and viewing levels have increased dramatically, leading to a number of recent deals.
He adds: "It is a logical step in a market dictated by seasonal trade, as buyers want to be in situ prior to the start of the season and current operators don't want to go through another one.
"Undoubtedly 2003 saw the best year for quite some time for business owners with a long, hot summer, low interest rates and a return of foreign visitors, who had held off after previous worries over terrorism.
"Conversely, 2004 was a shorter wetter season and coupled with a slight tightening of the purse strings, which has left the majority of business owners in the south west hoping for a return in the forthcoming year to the levels shown in 2003.
"Despite this, the pubs department in Exeter saw its best year ever in 2004 in respect of transactions completed and there was a general feel good factor to the market from banks and purchasers alike.
"While this cooled a little in the last quarter, which is natural for the time of year, it seems to have returned with some vigour and sensibly-priced stock is selling within a reasonable time period."