Freeholds get boost

More private buyers will get the chance to buy freehold pubs, following the decision by Admiral Taverns to curtail its acquisitions programme.

Neil Morgan, director and head of Christie+Co's pubs division, says the freehold sales market will be boosted following Admiral's withdrawal.

Morgan predicts substantial numbers of houses put on the market by big operators such as Punch and Enterprise will now be advertised individually rather than sold in block packages. He says it will give private individuals, multiple operators and small brewers a golden opportunity to acquire more pubs.

"Admiral's decision to halt pub purchases will give a much-needed boost to the freehouse market.

"It will enable a range of buyers, previously excluded from the market, to bid for the substantial number of pubs that will now be placed on open sale.

"We expect many new entrants and first-time buyers to get the chance to bid for these pubs as they become available," he said.

Admiral has bought more than 3,000 pubs over the past three years, the vast bulk obtained via packages made available by the big operators, but never advertised on the open market.

"We expect private buyers, multiple operators and small brewers to emerge as the most likely buyers.

"Many pubs will be marketed as individual units, giving a range of different buyers a better chance of getting the outlets they want," he added.

Morgan said a substantial number of bottom-end houses will be made available for realistic prices on a "bricks and mortar basis" because in many cases they have been closed and unable to offer recent trading accounts.

Christie+Co says about 5% of the UK's stock of 17,000 freehouses was sold last year, the bulk going to pubcos.