Pub property agents call for stamp duty cuts

Cutting stamp duty and cracking down on cheap supermarket prices top the list of measures that agents want the next Government to take to stimulate the pub property market.

The Morning Advertiser​ conducted a snap survey of six agents, which revealed that half call for the Government to act on stamp duty.

Neil Morgan, head of pubs at Christie+Co called for the introduction of a stamp duty holiday for first-time pub buyers.

GA-Select's managing director Graham Allman said stamp duty should be abolished on licensed properties worth up to £500,000, and stay at 1% on pubs valued between £500,000 and £1m. Graeme Bunn, a director at Fleurets, called for cuts to both stamp duty and capital gains tax.

Agents also felt that below-cost alcohol sales in the off-trade were negatively impacting on the industry, making it less attractive to newcomers.

Two agents also called for the Government to exert pressure on the banks to lend to the licensed leisure sector.

Paul Tallentyre, head of pubs at Davis Coffer Lyons, said more stringent lending criteria at state-owned banks would "revitalise lending into the sector".

More radical measures included calling for a complete restructure of the tied lease model — which Stephen Taylor, managing director of Guy Simmonds, said would "help to attract more pub buyers" — and allowing some pub purchases to be exempt from VAT for a certain period.

Taylor called for "positive action, not posturing" from the next Government. He added that restructuring the tie to allow licensees to earn a fair wage would help change the pub's negative image.

"The trade has got such adverse national publicity now, and there are so many failed and boarded-up pubs, that this has really damaged the public's perception of the trade.

"It would help if people could see you can earn a living through running a pub."