Pub agents hope banks will begin to lend

Pub property agents are hopeful the new Lib Dem-Conservative coalition Government will kickstart lending to the sector.

Following a Morning Advertiser​ straw poll of seven agents, four are optimistic the new Government will tackle banks to encourage more lending, although they admit it's early days. Otherwise agents don't think the new faces at Westminster will have much impact on the market.

Graham Allman, managing director of GA-Select and a Conservative councillor, believed the new alliance will be positive for pub property. "As far as banks are concerned, the new Government has some real big hitters including Vince Cable as business secretary, who is well respected. If anybody can get banks listening, it's him," said Allman.

"Banks will be Vince Cable's baby, and we know he wants to split the 'casino' parts of banks from the high-street lending arms — but I don't think any Government will be able to force banks to lend to the sector," said Andrew Watt, head of licensed leisure at Colliers CRE.

Robin Mence, managing director at Sidney Phillips, said: "When it comes to the financial issues we can only hope this Government will have better success than the last in getting banks to agree to start lending to the sector. It's only if the coalition can do this that the change of Government will have any major effect on the sector."

Guy Simmonds managing director Stephen Taylor said: "It's very difficult to assess what will happen as we are now entering unchartered political territory. It's banks rather than Government who are holding the cards."

VAT concern​

Taylor also admitted he is concerned by the predicted rise in VAT to 20%. "This would increase prices all round in a very weak retail market. It could hit pub profits, which could affect pub values and depress prices at a later date."

But Graeme Bunn, director at Fleurets, said: "I anticipate that the new Government will do little to directly assist the pub property market. The residential and general commercial property markets are in good health. Any direct action to assist property markets may just overheat the residential market in some places."

Looking at wider issues, Paul Tallentyre, head of pubs at Davis Coffer Lyons, said: "Hopefully the coalition will bring alcohol duty down. It may even look at releasing the tie within the next couple of years." But he isn't convinced the new team at Number 10 will have a major impact. "I've just emailed our clients asking what effect the coalition will have on their businesses, and most say there will be no significant impact."

Simon Chaplin, director at Christie+Co, said: "The initial signs are that the new Government will make swift decisions for the business sector, which will allow them to plan for any tax increases and deregulation, and get any pain out of the way sooner rather than later."