Town sites see boom in trade

Related tags Rural pubs Newcastle upon tyne

City profits rise while rural pubs continue to sufferThe town and country divide is as marked in north-east England's pubs market as it is anywhere...

City profits rise while rural pubs continue to suffer

The town and country divide is as marked in north-east England's pubs market as it is anywhere in the country.

While foot-and-mouth has added to the troubles of many rural pubs, especially in Northumberland, nightlife in the cities is as vibrant as ever and drawing in plenty of investment.

According to Nigel Westwood, head of licensed and leisure business at local property agent Sanderson Townend & Gilbert, "reduced movement in the countryside has had disastrous effects on trade and for some small rural pubs it may be the final straw".

However, David Lee at Christie & Co's Newcastle office reports that the freehouse market is "particularly buoyant at present".

"Pubs most in demand have a high turnover and a high barrelage which are of interest to large operators," he said.

Inn Partnership, for instance, recently picked up Folly's Bar in Barnard Castle for £320,000 and Cottles Bar in Willington for £215,000, while leaseholds have been attracting first-time buyers.

It is the towns and cities, however, that are seeing the big action.

"The Quayside area of Newcastle is still the hotspot," said Mr Westwood. "But strong trade has spread to Gateshead which, when the new millennium bridge opens later this month, will bring tourists and revellers south of the river."

A Pitcher & Piano has already taken up prime position at the head of the bridge and will be joined by more bars, restaurants and hotels.

"Another area enjoying a boom is Jesmond, to the north of the city centre," he added. "Hotels and guest houses have taken advantage of changes in licensing and are now trading at exceptionally high levels with increases of 200 per cent reported.

"Having said that, these changes have not gone down well with residents and no doubt the expansion of the area will be carefully monitored."

On Teesside, substantial sums of money are being spent on redevelopment and refurbishment, reported Sanderson Townend & Gilbert's Jo Robinson. "In Middlesbrough, operators who currently trade on Corporation Road are likely to benefit from the new leisure park, due to open later in the summer," she said. "Further along, towards the town centre, Luminar Leisure has purchased the Odeon cinema with plans to open a Jumpin' Jaks venue.

"In Darlington the established circuit along Skinnergate seems likely to continue. New development schemes are also taking place with plans over the next 18 months to build a leisure centre housing bars and restaurants on a site near the town's bus station.

"The area of Salt Yard at the top of Bondgate will provide scope for future leisure developments, making use of the derelict buildings that have stood empty there for some time.

"However," she added. "As with all geographical areas activity in the cities may have a knock-on effect for outlets in more rural locations where there has been a marked increase in licensed premises being sold for residential use."

Our focus on the North East continues with:

Investment set to revitalise Newcastle's 'Pink Triangle' (11 June, 2001)

Wessex rationalises estate after further acquisition (11 June, 2001)

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