Sales of pubs increase despite downturn

Sales of pubs are defying the economic down turn and have risen by 12 per cent, according to property agent Christie + Co.

The agent has released details of its first quarter trading in 2009, that show more deals have been agreed than in the same period in 2008. Over 150 individual pubs have been sold since January 1.

Christie has confirmed that a significant number of those sold have been to regional brewers and local operators, who are taking advantage of lower prices and a lack of competition from pub companies.

Neil Morgan, head of pubs at Christie + Co, said: "The pub sector was one of the first in the UK to be affected by the credit crunch, which impacted the market on the back of the smoking ban and the rise in alcohol duty. Come mid-2008 the deal market was driven by 3 D's — 'Debt, Death and Divorce', while we are far from the road to recovery, we are seeing the first signs that a fourth D — 'Desire' is making a slow return."

"[This increase] shows that people's appetite to acquire and run a pub is still strong despite the difficulties the sector is currently faced with."

David Grant, head of UK business mortgages at Christie Finance, said: "Despite laying down stricter lending criteria, banks are still willing to lend to those looking to acquire pubs, especially established operators and also in cases where the business for sale has a good trading record."

Christie also confirmed that demand for freehold pubs and managed to leased conversions remained strong. The alternative-use market has remained stable with new clients such as convenience store operators, showing interest.