Brian Sheldon, director, Christie+Co

Just over two years on from the introduction of a smoking ban in Scottish pubs, the overriding feeling in the sector is one of acceptance, as operators have used the legislation as an opportunity to improve their offers to cater for new and existing customers.

The threats that many smokers would flout the ban never arose, and any negativity towards the new law was quickly buried beneath reports that the initial impact had been positive.

Non-smokers returned to pubs, coupled with an increase in female customers, while smokers in general were willing to put up with the change as they took to smoking while walking from pub to pub.

Pubcos and operators, which had invested significant amounts in preparing for the ban, reported marginal uplifts in sales, and while the novelty value has worn off, the predicted rush of closures has never come to fruition.

The operators who have embraced the ban as the next step on the road to improved standards of environment have benefited, while those who have stood still have invariably suffered.

The major pubcos, who in previous years had been increasing their portfolios by acquiring freehold pubs to convert to their developing tenanted estates, started to review their policies on what type and nature of pub would satisfy and meet post-ban trading demands.

Consequently, their acquisition of traditional pubs which occupied the ground floor of a tenement building offering no smoking solution began to be questioned. However, their reluctance to move swiftly allowed single operators to act and further drive the freehold market.

So the market now has a distinct lack of quality privately-owned freeholds, which has led to the growth of the tied leasehold market.

The Scottish pub market has turned virtually full circle in two decades, whereby the development of the tenancy market now mirrors the freehold market of the late 1980s.

There has been much to contend with over the last few years within the pub trade in Scotland — and much change, most of which has been forced on licensees. However, the market is still robust. There are still buyers, and banks are keen to get involved and back good operators who have a solid track record.

Values have levelled out within city centres — and, it could be argued, have dropped elsewhere, but this has in turn has brought a sense of realism to the valuation and expectation of what someone will pay for a public house.