Leases change in light of ban
The effects of the smoking ban could lead to changes in the tenanted/leased pubco model - but it will be "evolution rather than revolution", a leading property agent has said.
In its assessment of the ban one year on, Christie + Co said it predicts a slow change in the nature of leases, rather than a "heavy handed legal challenge".
"It is more likely that the nature of leases will change slowly, possibly to allow tenants to benefit more from the buying power of their landlords with suppliers such as energy providers," the firm said.
On the subject of pub closures it pointed out this had been going on for "several years" and included outlets being sold for alternative use, "as well as those which have closed for economic reasons".
Looking at the prospects of recovery, Christie predicts that "a reasonable summer, coinciding with the one year anniversary of the introduction of the ban, may well signal a recovery in the fortunes of the sector.
"But this recovery is likely to remain relatively fragile until general economic conditions improve and the 'feel good' factor returns," the property firm said.
It concluded: "The UK pub industry has been, and will remain, resilient and despite the short term issues which are currently being experienced, most commentators believe it has a long term future.
"The key to the survival of individual pubs will be flexibility in the nature of their trade, an ability to attract new customers and the financial wherewithal to invest in the business."
