Buyers will lead way but no room for gloom
The year 2005 will no longer be a sellers market and those looking for buyers for their pubs must be prepared to consider realistic offers.
That's the view of Barney Bettesworth of West Country agent Bettesworths. But he stressed: "While pub and hotel prices may have peaked during the summer, there is no reason for gloom and doom.
"Unlike in the late 1980sand early 1990s, the economyis now much stronger in theUK with almost full employment, minimal inflation and, despite recent increases, stillrelatively low interest rates."
While Bettesworths does not foresee any great fall in values, the agent says that would-be buyers will be looking very carefully at benefits of purchase, the accounts, and how much they are paying, particularly for lifestyle businesses.
"The underlining demand is still strong and there are still many would-be buyers for hotels and pubs, particularly in the West Country," Bettesworth added.
Lenders are keen for new business, but with less inflation in the property market, they are obviously keen to ensure that the new business is a viable concern, and price is therefore a critical factor.
Bettesworth added: "To sum up, 2005 will no longer be asellers market. Purchasers in a position to proceed without a dependent sale, will be in a strong position and will be looking for good value as an increasing flow of businesses come on to the market."
Bettesworths reports that it has sold 135 hotels, pubs and catering businesses in the 12 months to early December with 70% of the buyers coming from outside the area.
The pub market has been buoyant with properties changing hands including the Kings Arms in Blandford, sold for £840,000 to Scottish & Newcastle in an off-market deal, and the Bell at Broadway, Somerset,sold to a corporate buyer for £675,000.
Substantial hotel sales conducted by Bettesworths include the 60-bedroomed Kistor Hotel, close to Torquay's seafront, sold off an asking price of £1.7m, and the 52-bedroom Bancourt Hotel, also in Torquay, which changed hands off an asking price of £1.25m
