Average rents on new leases drop, according to RICS

By Michelle Perrett

- Last updated on GMT

Related tags: Renting, Leasing

rents leases RICS
The average annual pub rent for new leases in England and Wales dropped slightly to £24,368 per annum during the second quarter of 2013, according to the Royal Institution of Chartered Surveyors (RICS) Pub Benchmarking Survey.

This is the first quarter to provide comparable data for the four leading companies — Enterprise, Punch, Marston’s and Star Pubs & Bars. In the previous quarter average rent on a new lease was £25,187pa.

As part of the report the four pubcos predicted that average pub turnover would reach £296,103 in the next two years, up from £293,698 predicted in the last quarter. If so, rental costs will represent about 8.2% of turnover.

Pubs in the central south have the highest rents at £29,725, followed by the south-east at £28,316 and the east at £25,279. A total of 308 leases were granted in the period and average lease length fell from seven to six years.

Related topics: Property law

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