THE AGENTS

Barry Aldred

Associate Director,

Davey & Co

The pub sales market has continued to experience a sustained boom throughout 2006 and the pre-Christmas selling season from September to November lays testimony to the continued momentum in the market.

Over the past 12 weeks or so, we have secured more than 70 new instructions to the pub sales market, with a total sale value of over £28m.

These are all private-client, owner-operator-led businesses and we are averaging only 10 weeks to sell a business. The sheer volume and transactional value of these instructions confirms an overwhelming market sentiment.

Looking at these new opportunities in closer detail, it is interesting to note that freehold freehouses account for 33%, leasehold freehouses 30% and tied leases 37%.

As ever, demand tends to favour the freehouse market, both leasehold and freehold. However, profitable, well-located tied leasehold opportunities have also been in strong demand, particularly those carrying a beer-only tie.

These beer-only ties are popular, as they allow an operator to drive wine, mineral and spirit sales on the back of developing an attractive food offering.

As to what market trends hold in store for 2007, that remains to be seen. My guess is that as we continue to operate in a low-interest-rate environment, with continued support of the banks in the owner-operator pub sector, there seems little change on the horizon.

That said, I hold the opinion that values are unlikely to continue to rise at the rate we have experienced this year, with a levelling-off period in view rather than a sharp correction.