Market defies regional crisis

Floods and foot-and-mouth have failed to curb interest in owning Yorkshire pubs, despite the fact that many rural businesses have been hit severely by a series of crises.

Rodger Vickers of Leeds-based agent Brownill Vickers reports that corporate operators are taking a particularly aggressive approach, on occasions even paying the vendor's agent's costs to complete a deal before the pub is advertised.

"The freehouse market in general terms is more vibrant than ever as far as those pubs trading at, say, £4,000 to 5,000 a week and upwards are concerned," he said. Rodger Vickers of ​
Brownhill Vickers​"Interest from private individuals has been swelled by major pub companies. Some of the better outlets are being sold within days of - or even prior to - coming onto the market.

"High barrelage figures are no longer the only attraction. A balanced income split between wet trade, food and even letting bedrooms is just as attractive.

"The market is not so vibrant, however, for pubs trading at lower levels," he continued. "Would-be buyers seem to be less swayed by the romance of owning their own pub than they once were - they look at the financial implications.

"Pubs trading poorly with little potential are likely to 'stick' on the market."

Ian Wilkie, director of Christie & Co's Leeds office, agreed that "although tourism has been severely affected, particularly in the Yorkshire Dales and North York Moors, potential buyers are taking a cautious yet positive approach".

"The media message that these areas are closed for business has dramatically reduced trade, but despite the obvious concerns, people are still prepared to buy businesses," he said.

"Since the onset of the foot-and-mouth crisis we have continued to see genuine buyers, mainly from outside the area. Purchasers have taken the view that this is a short-to-medium term problem and in the long term the national parks and rural Yorkshire will again attract a considerable flow of visitors.

"Many of the banks appear to be standing by the industry, not only supporting existing business owners but also prospective purchasers by offering holiday periods on loan repayments.

"We are not seeing chance buyers whose main aim is to pick up a bargain, nor are we seeing a panic reaction from owners keen to sell up," he concluded.

Simon Hall of Fleurets, meanwhile, has seen a number of his clients "reach the end of the road. It has just been one thing after another for the last 12 months and they have decided to call it a day," he said. "Nevertheless, the majority of publicans seem to be sitting tight and hope to ride out the storm to enjoy what must be sunnier times ahead.

"This has resulted in a shortage of supply with relatively few new properties coming onto the market. The current problems, however, do not seem to be putting off potential purchasers as levels of demand are remaining strong. Prices are set to remain firm as a result."