Pub auctions bonanza looms

A series of auctions will be held over the coming months as pubcos strive to offload bottom-end pubs.

Nottingham-based property consultant HEB is holding an auction on 12 October and eight pubs, all with vacant possession, will go under the hammer.

Guide prices for the properties range from £95,000 for the Victoria, in Chesterfield, Derbyshire, to £285,000 for the Fox and Hounds, in Tugby, Leicestershire.

HEB's Matt Hilton said "a decent amount of interest" had been shown in the properties even though the sales catalogue had only just been finalised. He expects at least seven will be sold at the auction — which is being held at the Nottingham Belfry Hotel — judging by the results of previous events conducted by HEB.

Over the past year, the company has sold 50 pubs at auction and holds sales every two months on average.

Around two-thirds of all pubs sold at HEB auctions are then subjected to a change of use to residential dwellings or other commercial activity.

Hilton said: "Pubcos have had to go through the process of clearing out the non-profitable pubs.

"I believe pubcos are getting towards the end of that process."

Pugh & Co will be holding an auction on 14 October, but the number of pubs being sold is uncertain as the catalogue has not been finalised. Last week, the company held a similar event in Leeds involving six pubs.

Four were bought before the auction and one failed to reach its reserve price — the Bulls Head, in Cleckheaton, West Yorkshire, which is now being offered below the reserve.

The only pub to sell on the day was the Star, in Conisbrough, South Yorkshire, which went for £100,000.

Earlier this week, Sheffield-based Mark Jenkinson & Son offered six South Yorkshire pubs. Five of these were Enterprise Inns' disposals with guide prices ranging from £45,000 for the Cutlers Arms, in Gleadless, Sheffield, to £185,000 plus VAT for the Toll Bar in Maltby.

Jenkinson's Adrian Little said all six offered potential for conversion.

"Their time as public houses has gone. They are being sold as a last resort.

"It costs a lot to keep a pub closed because there are security and heating bills

to pay."

Stephen Taylor, managing director of Guy Simmonds, said the pub auction market was still buoyant, especially auctions held at the pub.

"We have found on-site auctions very successful, but they are labour-intensive.

"On average, we get 30 to 40 prospective buyers at each auction."

The next on-site auction is on 5 October at the Sneyd Arms Hotel, in Stoke-on-Trent, Staffordshire. The business has a turnover in excess of £900,000 and a guide price of £675,000.

It is owned by Maureen Flowers, a former British ladies' darts champion.

Taylor said the auction was already attracting a lot of interest.