Pub prices stabilising, claim pub property valuers
A survey of Association of Valuers of Licensed Property (AVLP) members found that only 36% thought freehold prices had fallen in the past six months. This is against 81% of members believing prices had fallen in the previous six months.
A quarter (25%) said that they had seen a rise in the interest in freehold during the period – against only 6% in the previous six months.
Half of AVLP members claimed that the value of leasehold premiums have fallen in the past six months, compared to 75% last time around. However, 7% said that they had risen compared to 0% in the previous six months.
Additionally 31% of people said that interest in leasehold pubs had risen, against 20% in the last poll.
According to 14% of those asked, multiple operators were considered more active in terms of acquisitions in the past six months against 27% in the previous period. Muliples, were thought to be more active in the disposal market according to 40% of those polled, a moderate rise from 38% in the last survey.
Only 6% of those polled said that funding for licensed property was more accessible than six months ago, down from 13% last time around, while 31% claim it is broadly the same, against 25% last time.
Bob Whittle, secretary of the AVLP, said: “I remember looking at this poll last year and thinking that if there’s one thing this industry needs now it’s straight forward, honest advice, that, and for the banks to take the industry seriously again, and I’m not sure too much has changed. The poll is reflective of our membership and whilst not all-encompassing, certainly it’s clear indication that we’re not out of this recession yet.
“It’s not all doom and gloom, deals are getting done, but typically by those that are self-funded, exactly as the results of the poll elude to. Looking ahead, the market can only be driven by the sensible and sustainable matching of buyers and sellers. There are thousands of keen buyers around who are willing but are unable to proceed because the banks are not willing or able to lend or vendors prices are unrealistic.”
