Pubs positively linked to economic value of rural areas
It is no secret that the decline of pubs often goes hand-in-hand with the disappearance of other community initiatives.
However, an academic has said his findings show their decline also has an impact on the overall attractiveness and economic value of areas, especially countryside communities.
The research was produced by Ignazio Cabras, professor of entrepreneurship and regional economic development and head of accounting and financial management at Northumbria’s Newcastle Business School.
Professor Cabras explained: “In rural areas, preserving pubs from closure can help keeping house prices stable and may even increase the value of localised house markets.”
He used data from 373 local authorities gathered between 2005 and 2015, and found this effect was particularly strong in predominantly rural areas.
Third places
Cabras said his research is further proof the Government and local authorities should continue to invest in projects that aim to prevent pub closures.
He said: “In the past, public sector financial support helped many communities create co-operatives aimed at purchasing their pubs, particularly in the countryside.”
Several initiatives have increased public awareness about the risk closures pose to the cultural life of rural communities, including Pub is The Hub, the Plunkett Foundation, and the Campaign for Real Ale (CAMRA).
Cabras added: “Preserving the role and impact of pubs as third places would also serve in increasing the level of attractiveness of many residential communities and according to their location, these may be expected to have a positive impact on house prices.”
Last year it was found that houses within walking distance of JD Wetherspoon pubs sold for more than £70,000 less than the local average house price.
Houses nearby 184 JD Wetherspoon sites were discovered to be 27% cheaper than the local average according to the study from Mojo Mortgages, as reported by The Morning Advertiser.
