The latest Christie & Co Pubs & Restaurants Market Review showed pubs dominated deals made within the sector during the first half of this year.
It said pubs accounted for 79% of all hospitality deals brokered by the property advisory firm so far in 2025, compared to 21% for restaurants.
Most of the deals - 68% - involved freehold assets, indicating “sustained investor confidence” in bricks-and-mortar ownership.
Independent buyers played a key role, representing 65% of transactions, underlining the growing influence of smaller operators, according to Christie & Co.
The report added while the sector continued to face cost pressures and operational complexities, the pub market remained solid: “Despite the widely-reported economic headwinds and operational challenges, hospitality operators are tackling uncertainty head on, and we are still seeing demand for pub and restaurant sites across the UK.
Long-term viability
“Looking ahead to the rest of the year, we predict there will be an increase in M&A activity, with tenanted pubcos continuing to be active. There are more opportunistic buyers in the market and as interest rates continue to fall, we anticipate accelerated transaction activity in the sector.”
Some 86% of the pubs sold were acquired for continued use as pubs. This, Christie & Co suggested, underscored the “resilience and long-term viability” of the sector.
The average reported value of the 83 individual pub and restaurant valuations Christie & Co instructed on in H1 this year stood at £1,265,758.
Most of the valuations were freehold and were for triennial revaluation purposes and refinance.
Despite slightly subdued demand in large regional cities outside London, appetite remained strong for premium sites with sustainable earnings.
The report noted a rise in acquisition activity among pubcos, alongside a move to streamline portfolios. However, pricing remains a critical factor in deal negotiations.
Meaningful opportunities
Despite cost pressures, the report added distress sales were low, though it warned this could change as a “direct consequence” of the measures announced in last year’s Autumn Budget, which could further fuel an increase in M&A activity.
Consumer preferences have also changed, the report added, including increased desire for no and low alcohol options, experience driven pub visits and a shift in demand from food to wet-led occasions.
Additionally, the data found the market for pubs with accommodation was more “robust” than expected and had seen “significant growth”.
Christie Finance consultant Nathan McFarlane said: “The current lending environment presents meaningful opportunities for operators.
“The broadening of lender appetite is creating a more inclusive landscape for a wider range of operators.
“Experience continues to be a key factor for lenders, and this creates excellent opportunities for experienced leasehold operators who are looking to transition into ownership, especially if the opportunity pertains to their current site.
“This trend is expected to grow and is underpinned by favourable lending conditions and a supportive market environment.
“Although freehold acquisitions remain a primary focus for many lenders, there has been a marked improvement in the availability of funding for leasehold transactions.”
