THE AGENTS

When licensed property agents are asked to comment on the property market, they almost invariably refer only to freehold sales and/or second-generation leasehold assignments.

There is, of course, a third level to the market in terms of new lettings, and I would suggest this is the most buoyant of all the markets at the moment.

My firm has been involved at the very forefront of this market since the early 1990s, when we pilot-marketed both the first Bass and the first Tetley (Vanguard) leases; marketed those outlets transferring from the Allied Domecq managed house division to lease in the mid-1990s; marketed the new Punch leases in the late 1990s and the Voyager leases in 2001.

The current activity in this sector has never been as strong. Indeed, during the lettings campaign we undertook for the Union Pub Company earlier this year, we saw more than

1,800 telephone enquiries and 800 new registered users on our website for a package of 88 pubs, leading to deals being agreed for 94% of the pubs within the first four months.

It is hardly surprising demand is so high, as not only are we dealing with outlets that trade at a level often in excess of £10,000 per week, but also, the overall "fairness" of the deals being offered is fuelling demand. Rents are based on a percentage of the profitability of the business after costs, with superb levels of barrelage discounts; substantial building-repair issues are being resolved prior to the lease commencement; high levels of support and training are provided, and the opportunity exists for joint-investment development and refurbishment schemes.

While the marketing of new leases is nothing new, it brings both added quality and freshness to the market. It's also good to see such quality businesses coming into the hands of private individuals, proving that the licensed property lease market continues to grow and prosper - with an overriding message that it is in everyone's interest to see sustained annual growth of the businesses from day one.

Having just launched a further 82 Spirit pubs and

restaurants on the market on behalf of Punch Taverns, we expect the demand to continue to be as high as ever. Just watch this space.