Cornwall pubs see record price rises

Pubs in Cornwall hit record prices during 2003, according to Jeremy Beeching, director at agent Scott Burridge Chick Leisure.

He says that the increase in the number of people looking for a "better or alternative lifestyle" is a major factor. And increasing numbers of pub-owning companies and multiples keen to acquire new units for their increasing estates have also driven up prices.

The re-branding of Cornwall as a tourist destination and new attractions such as the Eden Project, the Tate in St Ives and the Falmouth Maritime Museum has made the area more attractive to prospective licensees, the agent explains.

"This has fuelled an across-the-board demand for property, in particular, there is a surge in demand for licensed property," says Mr Beeching.

"Much demand has come from national pub owning companies keen to acquire more units to their ever increasing estates, and indeed from private or small multiple pub owners." The result has been that many freehouse pubs are being sold above of the asking prices.

The Boathouse in Falmouth, for example, was sold for more than its £400,000 price-tag. The agent adds that as a result there has also been an increase in demand for leasehold properties in the area.

"This is due to the scarcity of freehold property but also to the availability of cheap finance and a greater willingness by institutions to lend on leasehold properties," explains Mr Beeching.

The result is that leaseholds in Cornwall have been sold in excess of £100,000. He predicts that 2004 will continue with freehold and leasehold pubs remaining in demand.