Profile: Andrew Coulter, business development director, Dowling Kerr

Michelle Perrett talks to Andrew Coulter, business development director, Dowling Kerr.​

Do you think pub company policies of upward-only rent reviews are on borrowed time?​

Yes, at the present moment there is a case for saying that pub rents are at their peak or have been at their peak for too long. There does need to be some realism as to the requirements of the landlord, that is their return on investment and the need for the tenant/licensee to make a reasonable profit.

Upward rent reviews are quite often geared to property values rather than income and with inflation at only two per cent to three per cent it is unlikely that a significant number of publicans will be able to pay increase rent reviews.

Pub companies should take a more pragmatic view as to whether they are running a property company or a pub group and bearing in mind that the pubs may well be run by tenants and licensees they should engender good faith and profitability.

What do you think are the major property issues facing the pub industry today?​

In three words, "lack of flexibility". We have, in my opinion, too many pubs in the hands of major chains or under management and furthermore this is undermined by the tied pub lease. Where else in the world is there such a monopoly and control on such a major social activity?

If some of the pub groups thought more of trading rather than as property owners then the independent pub sector would be able to offer a wider range of services and provide themselves with a better income which in turn would improve the overall state of the industry.

If capacity limits are introduced under the new licensing laws do you think this will have any impact on pub property prices?​

Any legislation that affects capacity limits is unworkable and, what's more, unnecessary. A free independent market tied to an efficient and responsible licensee will always be preferable to any licensing laws. The pub prices are only geared to demand and there will always be a demand for private individuals to own, run and manage a pub.

Likewise, a demand to increase market share by pub groups and brewers will again always be causing a greater demand.

Prices, I believe, are at a peak, rather like housing, and I can see them going down is in a controlled manner for the next six months or so.