Average new lease length drops to five years

The RCIS Pub Benchmarking Survey also found the average rent on a new lease was £25,549, with an average projected annual turnover of £335,377.

Therefore average rent is 7.5% of projected turnover, a drop from 8.3% last year.

Average wet share of turnover on new leases was 77%, the dry share 21% and other shares 2%.

This is a shift from 70% wet share in Q4, 2014.

Fully tied leases continue to rise at 60%, up from 52% for the whole of 2014. 35% of new leases have part tie on average, with 5% free of tie.

Enterprise Inns, Punch Taverns, Marston’s and Star Pubs contributed to the survey.

The parliamentary Business, Innovation and Skills Committee recommended that RICS help improve pub rental transparency in the UK by better dissemination of pub lease transactional information.

In an effort to improve pub rental transparency, NCIS works with pub companies to produce a quarterly report on lettings activity.