THE AGENTS

Anyone looking to buy a pub could be forgiven for hearing only doom and gloom. But at Guy Simmonds, we are finding the smoking ban has had a considerable positive effect on the number of people wanting to operate in a smoke-free working environment. Despite some existing operators clinging to the past, the fast-growing breed of future licensees graduating through our award-winning training academy, can see a whole new opportunity to literally breathe fresh air into the trade.

Despite a slowdown in the residential market and a tightening in the mortgage market, domestic prices are holding up well and continue to release considerable equity, providing a solid foundation for first-timers to finance their first pub acquisition. We are also finding many prudent purchasers who, having sold their residential property, are living in rented accommodation with cash in the bank, so as to be ready to strike when the ideal proposition comes along.

We are seeing a definite trend in purchasers shying away from the idea of buying boarded-up leaseholds direct from pub-operating companies. We have seen in the national tabloid press that even a nil premium doesn't motivate a buyer to take on a closed unit.

Our purchasers see it as far better to buy a going concern with a good trading history and proven cash-flow/accounts marketed at a realistic valuation; this will allow a new owner to recoup his purchase price in one to three years.

Another interesting trend is a migration of existing operators from tied to free-of-tie leases. At Guy Simmonds we have a special and unique relationship with many of our purchasers, who attend our training academy before going on to acquire their first pub. These same clients often return to us to "part-exchange" their tied business by seeking freehold or free-of-tie leaseholds - thereby reinvesting their capital gain and experience in order to take the next step up the ladder.

In summary, in the 30-year-plus history of Guy Simmonds we are finding licensed property sales at their most buoyant in all price sectors. This week alone we have successfully negotiated over 10 sales, ranging from a small leasehold at a bargain price of only £19,000, to a top-quality freehold inn in the Peak District at a purchase price in excess of £1.5m.

Guy Simmonds logo for this please (rather than head shot)