Pub property agents report 'buoyant' summer sales activity

09-Sep-2013 - Last updated on 24-Jun-2024 at 09:53 GMT

Pub sales: property agents have reported 'buoyant' trading over the summer

The pub property market could be seeing green shoots of recovery as agents report “buoyant” trading over the summer, which is traditionally a quiet period.

Paul Tallentyre, director of pubs and bars at Davis Coffer Lyons (DCL), said that the company has been “busier than ever before”.

He told the Publican’s Morning Advertiser that DCL has seen appointments rise by 12% over recent months, and that leasehold premiums on pubs in London have increased by more than 20% in the past three months.

“It is difficult to put your finger on the reason for this bounce in the market,” he said. “It appears to stem from the confidence that has been emerging in the economy.

“This has buoyed the wider property sector to become more active, which has, in turn, filtered down into the pubs market. Both new and established operators are now actively looking for opportunities to buy or dispose of assets.”

'Clear economic cycle'

Robin Mence, managing director at Sidney Phillips, has seen similar trading patterns. “It’s been the best since pre-recession,” he said. “The market is improving.”

He put it down to a “clear economic cycle", which has “seven good years and seven bad years”.

Guy Simmonds’ managing director Stephen Taylor described trading as “frenetic and buoyant”. The firm has seen viewings rise 40% over the summer, compared with the same period in 2012.

Taylor said that, as the residential market has picked up, people have been able to sell homes and are desperately looking for a business.

“However, the caveat and warning is that prices must be realistic,” he added.

Simon Hall, director and head of pubs at Fleurets, said that pubcos’ financial year-ends have helped drive through sales. He added that he has seen more sales in the south, including cities such as Bristol and Brighton.

Paul Davey, managing director of Davey Co, reported a 30% rise in activity over the summer period.

“It’s been really busy,” he said. “People always say the market is distracted with low-cost disposals but we’re seeing a lot of better-quality pubs.”