Downturn in sales warning

Agents have warned that the present economic climate will make it harder to sell pubs.

There are fears that the current "credit squeeze", high interest rates and the downturn in the leisure industry will make valuers extremely

cautious.

David Morgan, of Cookseys DMP, said: "Just like the last three recessions that have occurred since 1975, the downturn started with banking caution, leading to valuation concerns over the ease of true values at forced sale, which ends up with a 'realignment' of the market.

"The market is getting harder, but if leases are priced sensibly, they are selling. The prime freehold market is holding firm."

He continued: "A flood of leaseholds and tenancies on the market as a result of the bad summer weather, plus flooding, will further pull down values."

Stephen Taylor of Guy Simmonds said: "The public perception of the health of the pub trade is not very good at the moment, partly due to national press coverage.

"There are a lot of boarded- up tenancies and leaseholds, but it's important to remember that it's still an attractive lifestyle change. People don't dream of running a fish and chip shop - they dream of running a pub."

He added: "In the short term we're OK - there's a lot of money being transferred to the commercial market from the residential. But I think that the current downturn in the housing market could be mirrored in the pub market over the next year.

"From previous experience, the effects take about 14 months to filter through."