CAMRA: Big city closures due to developers

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Property developers and the booming property market are the major causes of the demise of the city centre pub according to the Campaign for Real Ale...

Property developers and the booming property market are the major causes of the demise of the city centre pub according to the Campaign for Real Ale (CAMRA).

Research published by CAMRA earlier this month revealed that 380 pubs have been closed in London alone over the past two and a half years, with inner London being the worst hit, losing 307. The organisation said that many of the pubs have been sold to developers for the land or have been converted to other businesses such as restaurants or residential use.

Many argue that because pubs are relatively cheap to buy compared to other property and planning permission is easily granted by local councils for change of use, it means that increasing numbers of city pubs are facing closure.

CAMRA's regional director for London, Robin Forshaw-Wilson, said: "It is astonishing the number of pubs that have been closed and bought by property developers and this is happening across London.

"It's surprising how many of these are run by successful pub chains which are making extra money from selling pubs to property developers."

Last year the Pineapple pub in Camden, North London, was under threat after property developers purchased the Victorian freehouse. The developers planned to convert the pub site into residential flats and new offices. But a local campaign from CAMRA supported by local celebrities including newsreader Jon Snow and the cast of London's Burning meant that the pub was saved. Now CAMRA has called for people to launch campaigns and try to save their local pubs.

Colin Wellstead, director of agent Christie & Co, agrees that in London a lot of pub sites are being sold for alternative use due to the high property prices.

But he thinks that there are already too many pubs in the UK and that a large number of those that have been sold to developers are pubs that are unviable to operate.

"It's not just a London thing, I think overall we have too many pubs across the country. Developers are taking some of the unviable pubs," he said.

"Most pubs have two upper floors with a lot of redevelopment opportunities and what a lot of developers are doing is retaining the lower floor for A3 use."

This means that although the upstairs floors of the pubs may have been redeveloped into housing or office units the downstairs area will be retained as a restaurant or bar.

David Gooderham, director of property agents AG&G, supports this view, arguing that the majority of freeholds being sold are to property companies rather than trade buyers.

"For relatively low turnover pubs, higher values are attainable for alternative use," he said.

"However, the majority of developers on buying these pubs have retained a licensed use to the ground floor and have converted the upper floor for an alternative use, typically residential flats."

Pubs possibly under threat in London