Talking 'bout... when to buy property

"We've 30 pubs and we're looking to expand. We've the money, but the question on everyone's lips is when to buy and what to acquire? There's some distressed stuff on the market which looks OK, but then is the timing right?

"Prices are also a bit on the high side at the moment. Properties are still being touted at two times' turnover, which we think is high. We think 1.5 times is more appropriate.

"The good thing about the current environment is that two years ago £2m might have bought four community and mixed economy pubs, whereas now it would possibly buy twice that number.

"For a pub turning over £200,000 a year on six barrels a week, a price of £250,000 is probably about right.

"I personally don't believe the market has hit the bottom yet. There's just too much property coming on; there's too much supply and not enough demand.

"There are pubs coming onto the market quicker than they're coming off it. We're looking to expand but it will all depend on when the time is right. The thing is we're not convinced that time is now.

"The question to which the industry wants an answer is will the market turn before the end of the first half of the year, or will it be well into the second half?

"Stuff comes across our desk and if it's interesting we'll look at it in detail. But we're holding fire for the moment.

"The news these days is generally horrible, when it comes to trading. The recession hasn't helped, and nor has the smoking ban, which really kicked off the problems, in my opinion.

"But I believe the British pub has a huge future, even if there'll be a few thousand fewer in a number of years' time."