Pub auction rates peak

March has been revealed as the busiest month for pub auction sales in the past year — 84 pubs went under the hammer and 55 sold.

An exclusive survey for the Morning Advertiser by auction analysts Essential Information Group (EIG) showed the average price paid for a pub at auction last month was £516,671.

London pubs sold at auction last month raised an average of £1.16m each, while the cheapest pubs were to be found across the north, with pubs in the north-east selling for £70,500, and in the north-west for £73,500.

The London market continues to be driven by the sale and leaseback of Enterprise Inns' crown jewels — two sales were held last month and 11 pubs were sold. Enterprise has sold 36 pubs via this route in this financial year.

Since January 2009, 583 pubs have been offered at auction, and 381 have sold.

The figures show that overall auction rates are highest in areas with fastest closure rates.

The north-west and Midlands have sent 103 and 126 pubs to auction respectively, successfully selling 70 and 76 of these.

According to data from market analyst CGA, these former industrial heartlands were hit with the highest pub-closure rates over the past few years. Dudley South lost 28% of its pub stock between June 2007 and March 2009, while 50 pubs in Manchester alone closed between June 2005 and March 2009.

EIG press relations manager Mary Sandeman said: "It seems obvious that the number of pubs being auctioned has increased due to the high pub-closure rates. Auctions have proved to be a quick way to dispose of closed pubs.

"However, I don't think the number of pubs being sold at auction will increase, as pub closure rates are slowing down."