The property agent also revealed 21% of the pubs it had sold so far this year H1 2025 have been leasehold premises.
The report also showed pubcos increased M&A activity during the first half of the year.
It said the tenanted and leased sector model had seen the number of outlets continue to fall, as the bigger pub groups focus on their managed and managed operator (franchised) models.
It added the independent sector is the dominant operating model which is where we are most likely to see innovation and entrepreneurship, which it describes as “a sign of a healthy sector overall.”
Geographically there were some interesting trends.
The north and Midlands saw high activity in the first half of the year driven by pubcos and expanding groups looking to purchase privately-owned inns and bars to grow their portfolios.
Wet-led in fashion
The report found that food is no longer a pre-requisite, due to the increasing cost of produce and kitchen staffing, and wet-led bars are now very much back in fashion.
Sites in the region which offer letting accommodation in tourist and leisure destinations were “hugely popular”, given the accommodation gross profit is high in comparison to food.
In the south and east, the market also remained active in H1 2025, but pricing sensitivity continuing to shape buyer behaviour.
Demand for leasehold assets remained strong, particularly among experienced private operators and small independent groups. The sub £600,000 freehold segment continued to attract significant interest, particularly from cash buyers.
Despite extended transaction timelines, largely due to financing hurdles, the premium segment is also remaining resilient in the region.
Market conditions
The report predicted that transaction volumes would rise in the second half of the year in the region, driven by opportunistic buyers and sellers seeking to capitalise on improving market conditions.
However, the market in Scotland remained two-tiered with lower value freehold and leasehold businesses remaining “extremely buoyant”, while the higher value end remained “more challenging.”
There is growing interest in leasehold opportunities which give new entrants the chance to trade at a realistic rent level, it said.
Deals remain challenging due to funding and the length of time that they are taking to complete, however, it is seeing ‘creative’ deals happening where vendor loans are becoming more noticeable.
With the Scottish tied estate bill around the corner, pubcos are likely to diversify their estate, the report said, bringing opportunity for new and existing operators to acquire quality sites across the country.
