Westward go!

The South West remains a popular place to own a pub. With much of the region offering the opportunity of a back-to-basics approach, it is an obvious target for publicans looking for the quiet life - or at least a quieter life.

As such, agents continue to oversee the rising stream of freehold and leasehold deals, with competition for outlets high. Here, four agents with offices in the region give their view on the current state of the market…

Tim Meek, James A Baker ​

"We have seen high demand for South West properties on a freehold and leasehold basis. Generally speaking, prices have achieved expectations and there has usually been strong competition for pubs.

"At the right price pubs still offer a home and a business wrapped up as one. Several parts of the South West attract interest from across the country as these businesses are perceived to have a 'way of life' selling point. In addition, the boom in residential values underpins an element of the value attached to licensed property.

"Pubs are also still considered to be good value from a development angle. We have seen an increase in enquiries from both local and national developers looking to acquire sites.

"Leaseholds continue to attract interest at the right price as they offer a relatively cheap entry into the market.

"Our most recent deals tend to reflect a steady marketplace, despite the impending smoking ban and interest rate rises.

"The development market remains buoyant and proven businesses still sell. The South West remains a popular place to live and work and the enquiries we receive indicate continued demand in the market."

Linda Smart, Humberstones ​

"The pub market in the West Country continues to grow from strength to strength, and the desirability of owning a licensed premises is as popular as ever. The continuous rise in freehold prices has not deterred prospective buyers and the number of enquiries to buy is rising daily, with a number of purchasers who have the means to go forward also on the upward trend.

"The market is, at present, flooded with leasehold businesses, mainly tied leases, and this makes for a very price-sensitive market.

"Chosen wisely, these can be extremely profitable businesses that should increase in value as the business grows. Because of the obvious advantages there is, as ever, a high demand for free-of-tie leases unfortunately far greater than the availability.

"The imminent interest rate rise has so far not had an effect on the market. I would personally say that a further rate rise of a quarter or even half a per cent will see no dramatic downturn in the freehold market - however, only time will tell."

Matt Bettesworth, Bettesworths​

"The South West remains a very popular area in which to buy a licensed premises.

"As ever, properties by the sea are popular, although these are becoming increasingly difficult to find and therefore attract substantial premiums, whether freehold or leasehold. Popular 'hot spot' coastal towns include Falmouth, Newquay, Padstow, St Ives, Salcombe, Dartmouth, Torquay and Sidmouth.

"Inland, the large conurbations of Taunton, Exeter and Truro are seeing mini-booms. Pub prices continue to rise, particularly in the freehold sector, where demand outstrips supply.

"The growing trend of pub companies and brewers buying for investment purposes fuels the problem of lack of stock and therefore drives prices up. Meanwhile, as these companies pay top dollar to enter the market in the South West, the result is often an oversupply of tied leases with high rents.

"Regardless of growing prices, the South West still remains probably the most popular region in which to buy. Many of our applicants have had experience in the trade and several are looking for a change of lifestyle - and where better to look than in the South West?"

Richard Jones, Sidney Phillips ​

"Many aspects of the licensed trade have changed in recent years but the desire from potential licensees to move to the West Country remains. The improvement in the road networks has been a further factor attracting licensees in search of a more favourable lifestyle to the West Country. The freehold sector remains particularly strong and quality businesses with varied income streams are often selling without the need to reach the open market.

"Buoyancy with freehold pubs is further fuelled by the corporate sector raising the bar and paying seven-figure amounts in many cases for high-profile sites.

"Major companies are hungry not only for high-barrelage sites but businesses with significant catering and accommodation.

"The leasehold market is more delicate with potential lessees having a wide and varied choice. The banks' attitude to lending on leasehold pubs has restricted purchasers' ability to meet some asking prices and this has brought more caution, with most purchasers now seeking a more realistic return on their investment.

"The imminent smoking ban has made purchasers wary, particularly with non-catering-driven pubs. However, the favourable climate of the West Country should enable the area to adapt well."