Auctions offer rich pub pickings
Canny buyers are picking up bargain pubs at auctions in the north-west and Midlands, with one Northampton site being picked up for £50,000 less than its guide price.
Of the eight pubs included in a Bigwood sale in Birmingham, two sold in the room, while four sold prior and
two did not sell. Northhampton's Castle Inn was snapped up for £50,000, half of its guide price.
Bigwood MD Rory Daly said: "The pubs that have gone to market have really struggled over the past few years. When it comes to our auctions, we are quite tough on prices, and insist on vendors setting realistic prices, or we won't take the pubs. Our standard guide price is discounted 20% to 25% on the market value, but two years ago we said to pub
sellers we needed to be more competitive at 50% to 60% of market value.
"This time we didn't feel we needed to be quite so tough on pricing. On 26 May we exceeded expectations with the pubs, whereas for the last 18 months we've been fighting to get to the reserve and do a deal. We've done much better."
Bigwood's next auction is on 21 July.
Meanwhile, Pugh Auctions was selling off 23 pubs at two auctions, in Leeds and Manchester, over the past week. Twelve of the pubs sold prior, while five pubs sold at the auctions.
