Pub property agents point to north-south divide

Simon Hall, director and head of pubs at Fleurets, told the Publican’s Morning Advertiser​ the trend has been gradually developing over the past 12 months.

“We are seeing better returns in the south, not just London but the south-west and southern regions,” he said. “It’s the inverse of what it was four years ago.

“Birmingham and Manchester remain the same for us, but the total number of sales has been lower. The pub companies have got less on than in previous years. It is the same for the private market.

“It’s been a gradual change over the past 12 months and it is becoming more pronounced and more obvious now.”

Davey Co’s managing director Paul Davey has also seen similar trends.

He explained that the terms for which pubs are being offered are “sensible”, which brings buyer confidence. “The pace and early take-up is more marked in the south,” said Davey.

“We are finding that it’s across the board — be it freeholds for £2m or entry-level properties.

“If it is on sensible terms, there is a sharp take-up. I think that this year has seen a marked improvement — in the past six months, the market has perked up.”

Stephen Taylor, managing director at Guy Simmonds, said that although there were pockets in the north that were seeing good sales activity, the south was generally more desirable.

“Broadly speaking, profitability and desirability in the south far outweigh that of the north, and we see this chasm further widening in the future — in line with the overall economy in the UK,” he added.