The West Midlands is no different to the rest of the country in seeing a shortage of freehold pubs available. However demand remains high with some predicting that a new breed of licensee will enter the trade following the smoke ban. Here four local agents give their view of the current market conditions:
Noel Moffitt, Christie + Co
"With interest as strong as ever in the Midlands, we saw the average pub values rise by 8.5 per cent last year against only 5.2 per cent the previous year.
"This has created a market in which vendors are making the most of their assets with continued high levels of demand and limited supply.
"This has resulted in the general quality declining and, as a consequence, a fiercely fought battle for the high-quality operations continues between pub companies, investors and private individuals to ensure they secure the best the market has to offer.
"Purchasers' attitudes are changing locally as freehold prices become out of reach for many in the region, tied leases are now an attractive alternative. The high street has had a tough time in recent years but for the right location the purchasers are still there to take assignments."
Andy Tudor, Fleurets
"In terms of the property market in the West Midlands, I think it's fair to say that it is performing well. Leasehold properties continue to trade well, with the good ones attracting strong interest. It almost goes without saying, but the freehold market is limited by the few that come to market - when they do, much in line with the rest of the country, they are generally snapped up.
"Of course, the area hasn't escaped talk of the smoking ban, but that's to be expected and, as always during a time of change, we are likely to see some vendors and purchasers sitting on their hands during this period.
"Looking mid-to-long term though, I see the ban having a relatively small effect on trade in this area. Sure, we'll see a few operators leaving, but my feeling is that we'll see a new breed of licensee entering the trade.
"In summary, would-be purchasers of leaseholds will have to pay the going rate for the better end of the leasehold market and freeholds will remain scarce.
"That said, I think the right operators will be able to unearth a few pubs in the West Midlands that hold great potential, ban or no ban."
Andy Downey, RTA
"We have experienced a sustained level of enquiries for the Birmingham and West Midlands area. This is not surprising as the statistics for this part of the UK make interesting reading for anyone who wishes to run a business dedicated to providing the public with quality, value entertainment in the pub sector.
"Birmingham has seen an average rate of growth of residential property over the last five years of 12.5 per cent. However, house prices are still reasonable when compared to the whole of the UK with an average price being 84 per cent of the UK house average.
"This, together with the fact that there is a high percentage of young and single people, good employment prospects and all in one of the most densely populated parts of the country, should provide any pub person with the raw material for a successful business - potential customers."
Barry Alldread, Davey & Co
"The lack of freehold sites becoming available at the end of 2006 resulted in average prices reaching £500,000, while we have also seen a rise in value for good-quality rural leasehold freehouses.
"Profitable, partially tied leases which are free of brewery tie on wines, spirits and minerals, located in suburban towns have also been in strong demand by first-time buyers.
"The freehold market has remained strong in the first few months of 2007 and there is little sign of this slowing down. We are confident that through-out 2007 demand for quality outlets will be high, with rural pub-restaurants and inns leading the way.
"We believe that both freehold and leasehold freehouses will continue to achieve high premiums, and partially tied leases will remain appealing."