£1m freeholds are top targets

Freehouses marketed and sold in excess of £1m are becoming increasingly common in the property market. Pubcos are actively seeking out such businesses, along with private buyers, particularly those new to the trade.

Paul Davey, of Davey & Co, said: "Demand at the quality end of the freehold market is at an all-time high. This is driven mainly by the major pubcos, but also by private buyers who have access to large cash stakes facilitated by a strong housing market."

John Williams, of Sidney Phillips, said: "Lots of new money is coming into the trade from London. These buyers are attracted because you get a lot for your money with a licensed premises."

Stephen Taylor, managing director of Guy Simmonds, said: "We have many private clients we make contact with through our training courses. Most of them have a background in the City and are now looking for a change in lifestyle."

He continued: "Pubcos are almost always interested in high barrelage figures and a wet-led trade, whereas private operators are often looking for a food-led business."

Mike Morgan, of Sidney Phillips, said: "Properties are becoming more valuable because people are getting more astute at building up their businesses."

Schemes are in place to make these transactions easier, said Davey. "Funding for acquisitions at this level is, unlike availability of units to buy, in plentiful supply," he said. "A particularly supportive conventional banking environment and highly attractive tax-efficient vehicles are facilitating speedy transactions."