Property profile: Konrad Szymanski, director, Humberstones
Michelle Perrett talks to Konrad Szymanski, a director of Humberstones - a specialist agent and valuer for the licensed trade.
What do you think are the major property issues facing the pub/bar industry today?
There is a lot more interest in freeholds and a shortage of supply.
This is due to pub companies buying more freeholds and the situation in the domestic housing market. People are finding that, with higher house prices, it is difficult to sell a pub and have enough capital to get into the housing market.
What is the current state of the property market?
Leases have become more popular over the last five years as the market has got used to them. People are happy to sell their house and purchase a lease. In the south, where house prices are high, 70 per cent of our businesses is in leaseholds.
What do you think the future trends in the property sector will be?
The industry will continue to see a rise in freehold prices. The domestic housing market will have a knock-on effect on increasing values in the pub market, but pubs are still a little behind. The market saw a dip in freeholds between 1991 and 1994 but is recovering well, although turnover is still not as high. Semi-rural pubs are becoming more popular because of the favourable lifestyle attached to them.
Do you think that licensing is likely to have any impact on the property sector?
Anything that increases trade behind the bar is going to increase the value of the business. As long as a pub trades when customers want to drink it will bring more turnover into the pub and increase the value of the unit.
