Regional report
What makes Cambridgeshire a good place to own a pub?
Cambridgeshire in numbers
- There are 578 pubs in the county
- These pubs employ 12,591 people
- Pubs paid £255m towards GDP and £109m in taxes (Source: British Beer & Pub Association)
- Cambridgeshire receives more than 24m visitors a year bringing £2bn to the local economy and accounting for 10% of local employment (Cambridgeshire Economic Impact of Tourism Report 2013)
- At the Census 2011, the population of Cambridge was reported as 123,900. This was an increase of about 15,000 (13%) since 2001
- Estimates put the population at 143,653 in 2018
Cambridgeshire is a county that boasts history, rural landscapes, villages as well as cities, including Cambridgeshire, Peterborough and Ely. And let’s not forget Cambridge University. One of its most famous residents was Oliver Cromwell and also ITV detective series Grantchester was set in the county.
According to the British Beer & Pub Association, there are 578 pubs that employ 12,591 people in Cambridgeshire.
Pubs for sale
The Lazy Otter, Streatham, Ely
Price: £75,000
Tenure: Free-of-tie lease
Turnover: £482,656 (inc VAT)
Rent: £48,000
Wet: dry:accom split: 30:40:30
Agent: Guy Simmonds 01332 865112
This pub is in an enviable riverside location with high-quality letting accommodation. The pub has a loyal wet trade and it has a good reputation as a destination food venue. Due to its location, it is also very popular with the boating fraternity.
The Golden Lion, Stonea, March
Price: £395,000
Tenure: Freehold
Turnover: £200,000
Wet: dry split: 35:65
Agent: Davey Co 0333 200 8788
The freehouse and restaurant sits alongside the water frontage, which is only five miles from the market town of March. The premises is set in about two acres of grounds, offering great scope for leisure use. It currently trades three evenings and weekends only.
The Snug, Lensfield Road, Cambridge
Price: £90,000
Tenure: Leasehold
Rent: £39,500
Landlord: Ei Group
Agent: Fleurets 01223 402600
The Snug is a predominantly two-storey mid-terrace brick-built property under a pitched tiled roof. The trading area is largely open plan and is well presented throughout. It has an open-plan bar (52 covers), external seating (60) and a commercial kitchen on the first floor.
Growth in population
The landscape also means there is a raft of different pub operations. While many of the rural areas and villages are populated with independent freehold pubs, cities and towns such as Cambridge are awash with corporate operators.
And it is a region that is growing. Estimates from the Office for National Statistics show that it expects the population to hit 857,700 in 2019 and will increase to 935,200 by 2041.
Zaine Lamont, regional valuations manager of Eastern Counties at Sidney Phillips, says Cambridgeshire has been an area subject to recent population growth and urban expansion due to its strong road and rail connections to the capital.
Free-of-tie leases attractive
There has also been the evolution into a business and science hub centred around Cambridge and its academic institutions.
Lamont says that the leasehold pub property market remains buoyant despite the challenges facing the industry such as the market-rent-only (MRO) option and changes in pubco ownership.
But there are some trends in the market. Freeholds with a value of less than £300,000 are attracting interest from cash-funded developers while those above £300,000 are drawing experienced operators, he reveals. Free-of-tie leases, meanwhile, continue to generate the most attention.
“Corporate operators continue to dominate the bulk of visible out-of-town sites situated on main roads, retail parks and new housing estates due to their ability to fill large 100-plus cover purpose-built venues with a tried and tested food-led offering,” he says.
“Independent operators and small multiple operators occupy the vast majority of smaller venues situated throughout the towns, villages and countryside, which are sized more appropriately for hands-on owner-operators supported by a team of local staff.”
Village pubs face pressure
Karl Hines, director of the valuations team at Christie & Co’s Ipswich office, says trading is “challenging” in these rural areas of Cambridgeshire with too many pubs and not enough trade.
“There are a lot of village pubs there that are under a bit of pressure,” he says.
“Village pubs, unless they are doing a strong food offering, are going to struggle.”
Much of the activity in the region has been around the city of Cambridge. It has the benefit of not just a strong all year-round trade but a strong student population, UK tourists and overseas visitors.
“Cambridge is going to continue to remain the honey pot location with strong demand,” he says.
Micro-climate conditions
He describes Cambridge as a “trading micro-climate” compared to the rest of the region.
“Both the hotel and the pub market are very strong and there is a lot of corporates trying to get in to the city,” he says.
Interestingly, much of the property is reportedly owned by the colleges and universities.
A report by The Guardian in May 2018 revealed that the property holdings of
Oxbridge colleges were worth a combined £3.5bn. This means that freeholds are rare in the city but despite this the market remains competitive.
City Pub Company thinks the city has potential and has eight pubs open including The Old Bicycle Shop, Old Ticket Office and Cambridge Brew House.
History and academia
City Pub Group executive chairman Clive Watson said Cambridge is a good city for trading.
“Cambridge is a great city steeped in history and academia, but also very vibrant,” he said.
“We opened our first pub – the Mill – in May 2012 and we love the vibe the city generates. Cambridge is not uber trendy or flash – just a fun place where it’s great to operate a collection of pubs.”
To find out more about pubs for sale, lease and tenancy visit our property site.
Done deals
The Black Bear Whitchurch, Shropshire
Price: £445,000
Tenure: Freehold
Turnover: £446,368
Wet:dry split: 45:55
Agent: Davey Co 0333 200 8788
This market town freehouse has a single principle lounge-bar-dining room and two private meeting/dining rooms. There is scope to reconfigure the layout to provide three or more letting bedrooms. The premises provides an overall dining capacity in excess of 60 covers and has a good outside trading garden and terrace area in addition to customer car parking.
The Horse & Groom, East Ashling, West Sussex
Price: £1,250,000
Tenure: Freehold
Turnover: Circa £690,000 (inc VAT)
Wet: dry: accom split: 40:40:20
Agent: Guy Simmonds, 01332 865112
The Horse & Groom is a 17th century traditional village pub set in the affluent location of East Ashling. The pub was placed on the market for the first time in 24 years. The sale was agreed to entrepreneur John Ayton. The pub has a lounge bar, a snug and a restaurant. There are also 11 en-suite letting bedrooms, a good-sized beer garden and parking facilities for about 35 cars.
