Pub property market picking up

Interest in pub deals is growing according to agent Christie + Co which has reported a 27 per cent increase in completed transactions in the first quarter of 2010.

The property agent also recorded an 18 per cent rise in the numbers of pub viewers compared to the first quarter of 2009.

Neil Morgan, head of pubs at Christie + Co, said: "Although the first quarter of 2009 was one of the most challenging periods faced by the sector, we believe the rise in the numbers of completed deals, viewings and viewers over the last three months is very encouraging and continues the momentum we experienced in terms of sales at the end of last year."

This growing interest in pub purchases was evidenced at the Swan, in Cippenham, near Slough, where agent Fleurets was surprised by the level of interest shown in the boarded-up building.

Whereas such a unit has typically been attracting only five viewings James Davies, associate at Fleurets, said 17 people visited the property and eight of these have put in offers - a number in excess of the asking price.

"It shows there is activity in the pubs market and that for the right opportunity there are people with money to spend," he said.

Morgan suggested there was also a resurgence of interest in freehold pubs: "For established, multi-site operators there has never been a better time to grow their portfolios with a number of quality freehold opportunities becoming available at once in a life time prices."

He said the major pubcos, in contrast, continued to rationalise their estates as shown by the package of 150 pubs placed on the market by Admiral Taverns in April.