Much as it has always been, the ultimate goal of many tenants and lessees is to purchase a freehold pub.
The lure of running a business with your own bricks and mortar rather than remaining a tenant or lessee is a powerful incentive to buy.
But is there a dearth of freehold premises in the current marketplace? Has it got harder to find and purchase the dream?
Pubco power
There is no doubt that national pub companies, together with expanding local operators, are snapping up properties on a countrywide basis. Acquisition managers are working as hard as ever. Often their brief is to look beyond town and city centre sites to more suburban and rural premises capable of offering food and accommodation.
Investors and developers interested in taking on pubs have been appearing in ever-growing numbers as the yields on commercial properties have outweighed alternative investment opportunities.
Meanwhile, individual buyers with a view to building up their self-invested personal pensions, with advantageous tax allowances, also form a sizeable proportion of the interest that freehold property sales generate.
Alternative use
Many licensed premises, as soon as they hit the market, are appraised by potential buyers for their alternative use value - with many sites operating after purchase on a temporary basis while the planning options are worked for a change of use.
The rise in property prices in formerly less desirable parts of the UK has had the knock-on effect of increasing the value of converting apparently nondescript pub sites to a potentially more valuable commercial or residential use.
Freehold opportunities
The pool of available freehold pubs therefore continues to shrink throughout the country.
So, with all these comings and goings, where does that leave the individual who is considering taking the plunge into the freehold market?
Well, there are still many opportunities to be had for the determined buyer.
The large national pub companies are in a perpetual state of churn at the bottom end of their portfolios as they jettison underperforming premises.
Some of these disposals take the form of substantial packages, which are in turn reappraised by a substantial buyer, with the least productive layer being offered on an individual basis to the market.
There have also been pubs for sale at the very top level of the ladder, as witnessed by the recent sale of a number of superlative sites on behalf of Spirit Group.
A number of those Spirit pubs produced considerable interest within the trade, while attracting offers over the asking price.
Smoking ban impact
Next year's smoking ban will have an impact on everyone in the trade.
Licensees who have not anticipated the likely change in trading patterns will provide an opportunity for the freehold market.
As their turnover starts to decline they may have to consider selling up.
A good number of freehold sales at the James A Baker office are carried out on an off-market private and confidential basis. This will be for a variety of reasons, including the difficult task of keeping the staff from knowing what is going on, and preventing local gossip from affecting trade.
For the would-be purchaser, the possibility of an off-market sale is the opportunity to strike up a warm relationship with your favoured licensed property consultant, something all us agents look forward to.
It also means that an agent in possession of your acquisition specification and funding details can make discreet approaches on your behalf if there are specific properties you have in mind that are not currently available.
A recent example at this office was the successful acquisition of the picturesque Cotswolds Ebrington Arms, purchased on a completely discreet off-market basis on behalf of private individuals.
Finally, the variety of competitive financing and mortgage arrangements now available from reputable brokers means that when you find your ideal business your ability to fund the purchase is more flexible and easier than it was a few years ago.
Happy hunting!
Tim Meek is agency manager at property firm James A Baker