Agents: smoke-free plans help sell pubs

Go smoke-free now, if you're thinking of selling your pub.

Smoke-free businesses will be easier to sell than pubs that still allow smoking, according to agents.

Davey & Co director Paul Davey said: "If operators ban smoking now, they are demonstrating that trade will not necessarily be affected by something that may damage profits.

"If they don't implement a ban, buyers may overcompensate for the potentially detrimental effect and put in lower offers."

Fleurets director Yaser Martini said licensees entering the trade should also get to work on their "exit strategy" to end smoking at their pub.

He said: "It's vital that you consider the eventuality that you will want (or worse still, need) to sell your lease or freehold interest, even if that isn't part of your original plan.

"If you're intending to sell your pub at the start of, or shortly after the forthcoming smoking ban, then I would urge you to act now. Buyers look at historic trading figures and with the advent of the ban they will, in most cases, be comparing figures 'pre-ban' versus 'post-ban.'

"Do this and you could make your business more marketable and maximise the price achieved on sale."

Guy Simmonds managing director Stephen Taylor said he expected a surge of wet-led traditional pubs to appear on the market next year.

"Lots of pubs have seen a surge in profit after they banned smoking early. I think a lot of 'old school' licensees will be looking to get out of the trade and a new breed, who didn't want to enter the trade because of smoking, will look to buy pubs.

"Not only will there be a wave of pubs, there will be a wave of new buyers," he said.