South West pub market 'continues to show signs of positive growth'

28-Sep-2014 - Last updated on 30-Sep-2014 at 15:32 GMT

'There has been a particularly noticeable rise in the gastro pub concept', says Christie + Co

The South West pub market is continuing to show “positive signs of recovery”, with 34% of buyers new to the sector, latest research from Christie & Co has revealed.

The property firm said it has noticed a surge in new applicants registering with the company and looking for pub opportunities over the last 12 months, which it said has sparked a 9% rise in pub sales in the South West region.

It said renewed interest in the trade is due to the rise in the residential housing market and general signs of economic recovery, with many buyers relocating from London and the surrounding areas for a change of lifestyle.

Food-led concepts

Sophia Sangchi, licensed agent for Christie + Co, said: “Many buyers are spotting the opportunity to turn what might have once been a poor performing pub in need of capital expenditure and investing in it to develop their own ideas, with a particularly noticeable rise in the gastro pub concept. These pubs tend to offer a selection of good quality food, with locally sources ingredients and a trained head chef.

“A good example of this is the former Try Again pub in Bristol. When we launched this to market, the pub was wet led and had very limited turnover. It was offered to market as part of a larger corporate disposal programme. A local purchaser spotted the opportunity and transformed the unit into profitable business known as The Ashville, offering good quality food, local ales and B&B accommodation.”

As well as an improvement in food, Christie + Co said the South West has also seen a rise in the number of pubs offering locally brewed craft beers, which it said has come following an increase in the number of microbreweries.

It added that a rise in trade, triggered by a rise in consumer spending, means buyers are realising it is an excellent time to enter the pub market or expand their portfolio of sites while making the most of low interest rates currently being offered by lenders.

Freehold demand

Pub director for the South West, Nicholas Calfe said: “Demand for freehold opportunities continues to grow with buyers keen on assets with strong trading figures and/or in desirable locations such as Bath, Bristol or Cheltenham. A good example of this is our recent marketing of The Parrot in Cheltenham. The pub is currently closed, but due to its strong location, a deal was agreed within six weeks of marketing.”