Property market stands up to events of 2001
The licensed property market is a resilient business that has stood up to the demands inflicted by foot-and-mouth disease and the events of September 11, according to leading agents.
In their reviews of 2001, Robert Barry & Co, AW Gore & Co and Christie & Co all agree that although the market was affected by the unpredictable events of 2001 it was not harmed in the long term.
"Last year was an extraordinary one," said Christie & Co managing director Chris Day (pictured).
"Foot-and-mouth impacted in rural areas but the impact on Christie & Co's activity has been relatively small. We have continued to sell. September 11 had a minor impact but the effect on sectors other than hotels appears to be minimal."
AW Gore & Co pointed out that, despite the devastation caused by foot-and-mouth and September 11 with the threat of recession it brought, licensed property prices continued to rise.
Christie & Co said pub property prices rose by three per cent in 2001 which was "comfortably ahead" of inflation.
Even in areas where trade was initially affected by the outbreak of foot-and-mouth disease, such as those covered by Robert Barry & Co's Plymouth office, business picked up and the firm was trading strongly by the end of the year.
Robert Barry points out that at its Plymouth office things recovered so well that by December "well-funded buyers" were outstripping the supply of new properties, something, it said, that is "a good sign for the new year".
One feature of 2001 was the increasing number of new leases as several pub companies transferred managed houses to leasehold.
AW Gore & Co said this was also helped by low interest rates and banks being willing to finance leasehold purchases.
Colin Wellstead, national public house director at Christie & Co, said: "We've seen the creation of a lot more leases and a very strong demand for freeholds and leaseholds."
Christie & Co's Business Review predicts that 2002 will see a more positive and stable market after the events of last year.
High street branded pubs will be "under scrutiny" as a concept while gastropubs are, according to the Business Review, the next big thing to hit the pub trade.
However, while the overall outlook for 2002 is good, Mr Wellstead did have a word of caution for the trade.
"Foot-and-mouth was a blip," he said. "September 11 is something completely different and it is still far too early for licensees to assess what effect that whole scenario has had on their business."
