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UK Pub Sales News: Rate of pub closures slows down

Mon, 30 Apr 2012 17:13:07 +0100

The rate of pub closures across the UK has fallen to just 12 per week, new research from the Campaign for Real Ale (CAMRA) shows.

Rural pubs are now closing their doors at a rate of four per week, while licensed premises in suburban areas are closing at eight per week. These figures are down from an average of 16 each week during last September.

CAMRA believes that above inflation tax hikes on beer sales are a major contributor to the woes of many public houses and its new national e-petition to block further tax increases has already garnered more than 33,000 signatures.

“Whether situated in a small village, city high street, or on the edge of a housing estate, pubs are so central to our society that whole communities can grow around a particular pub," Mike Benner, chief executive of CAMRA, stated.

“A threat to the future of traditional pubs is therefore also a threat to countless social groups within Britain that thrive because of their local."

UK Pub Sales News

UK Pub Sales News: Government needs to do more for rural pubs

Thu, 26 Apr 2012 12:49:36 +0100

An academic is urging the government to do more to ensure that the nation’s rural pubs are preserved.

Dr Ignazio Cabras from the York Management School believes that too often brewing companies look at profitability rather the social benefits a pub offers to its local community.

He urged ministers to consider tax reforms which would help profitability in rural areas so that vital licensed premises can continue to serve the local people’s needs.

These reforms would include tax relief for anyone considering buying a pub in a remote village or cutting tax on beer, which has increased by an incredible 42 per cent in little over four years.

“The emphasis on profits can be justified economically, but not socially. If I was running a business, I would be want to make as much money as possible,” Dr Cabras told the Yorkshire Post.

“But when a pub is successful, the tenant often cannot afford the rents which are increased by the owning company and the pub closes.

“If a pub is continually opening and closing, this undermines the relationship between the customer and the landlord. And the closure of a pub is not just a business that it shutting, it is the loss of a real asset for the community.”

Dr Cabras, who lectures on economics, business and management, has carried out five years of research on the licensed premises market and through a grant from the British Academy is going to spend 14 months more studying the links between pubs and communities.

The British Beer and Pub Association (BBPA) has said that independently owned pubs are the ones most at risk at present and are shutting down at a rate of 15 per week.

UK Pub Sales News

London Pub Sales News: Kensington and Chelsea pubs to be saved from threat of closure

Fri, 20 Apr 2012 10:49:54 +0100

Rising living costs, unemployment and an inability to get a handle on debts means that increasingly tenants are struggling to pay their rent on time each month.

According to new research from the Association of Letting Agents (ARLA), four in ten (41.2 per cent) of estate and letting agents have seen an increase in the number of tenants unable to meet their rental payments to landlords during the past six months.

This has resulted in many struggling tenants attempting to haggle down the cost of their rent. The practice, ARLA reports, is most common in the North East of England and the South West, but virtually unheard of in London where rental values are continuing to rise.

Ian Potter, operations manager at ARLA, said that because unemployment is likely to rise many more tenants will find meeting the commitments difficult and this coupled with a rise in mortgage rates could lead to landlords also finding times hard.

"At worst, this double whammy may result in landlords defaulting on mortgages and tenants being forced to move out of a property," he said.

Tim Hyatt, ARLA President, added: "This situation highlights just how important it is for both landlords and tenants to carry out thorough research and, where possible, checks before signing a tenancy agreement."

The comments echo recent findings in the latest BTL index from LSL Property Services.

The index shows that during January this year the average home rental cost rose by 0.1 per cent to £712.

This equates to an increase of £30 to average tenant, a figure that many of those already struggling with debts and rising household costs simply cannot afford.

Indeed, LSL Property Services say that 10.7 per cent of all rental agreements were paid late or not at all by the end of January and the total value of the UK's arrears stands at £300.3 million.

UK Pub Sales News: Pubs and restaurants enjoyed buoyant March

Wed, 18 Apr 2012 14:40:53 +0100

Trade for both restaurants and pubs grew during March, thanks in part to the unseasonably warm weather.

Figures from the Coffer Beach Business Tracker show that business for those in the eating out sector were up by 6.3 per cent on the same month in 2011.

“March’s figures essentially put the sector back on an even keel,” said Peter Martin of Peach Factory – the firm which produces the sector tracker.

“The good weather will certainly have helped trading, particularly in the pub market, which performed more strongly than high street restaurants."

David Coffer, chairman of Coffer Group, added that London pubs and eateries are likely to see the biggest spikes in business this summer because of the Queen's Diamond Jubilee celebrations and the 2012 Olympic Games.

The UK's largest pub and restaurant chains all reported a significant boost figures for food and beer sales last autumn after we saw the warmest September for five years, and the equal-sixth hottest in 100 years.

Licensed property news: CAMRA calls for business rate relief for pubs which serve their community

Wed, 28 Mar 2012 17:37:46 +0100

The Campaign for Real Ale (CAMRA) believes pubs should be able to become the centre of their community by being offered new business rates which enable them to offer extra services, such as a post office or a crèche, the Morning Advertiser reports.

Speaking at the recent All-Party Parliamentary Save the Pub Group meeting in London, CAMRA chief executive Mike Benner said that a new system of financial relief for pubs which contribute to their community should be funded by the government and local councils.

He does not feel that the scheme would cost the government too much in real terms but the benefits to local businesses as well as the licensed trade would be immeasurable.

Mr Benner said: “If you assume that 10 per cent of pubs qualify for this discretionary relief, that’s 5,000 pubs, and if the typical rates bill for those pubs is £10,000, and if 50 per cent discretionary relief is applied, it comes to about £25 million.

“I don’t think that is a lot if we are serious about the contribution that well-run community pubs bring to our society. If you compare it to the £6 billion raised in beer duty and VAT, it soon starts to look like a small figure.”

If the scheme comes into force it spells good news for anyone looking a buying a pub, particularly in rural areas.

UK Pub Sales News: Villagers love the pub so much they buy their own

Tue, 20 Mar 2012 13:50:07 +0000

Such is the importance of a good pub to a community that residents at a village in Staffordshire have clubbed together to buy their own.

The Hollybush public house in Seighford was expected to developed into a different kind of commercial building, but villagers did not which to lose their local tavern and instead agreed to buy it at an auction in Birmingham.

However, they believe that the real work is yet to start as they now need to find a landlord as well as raise further finances for the premises restoration.

“We own it. Everyone is absolutely over the moon and it is really exciting," villager Michael Carthy told the Staffordshire Newsletter.

"We have paid for the building so there would be no rent charges initially. Our aim is to get it up and running and keep it that way.”

Some 19 pledges of support made the purchase possible, including one of £150,000 from a local haulage boss.

Licensed property news: FSB calls on government to support funding for licensed trade

Tue, 20 Mar 2012 13:48:21 +0000

The Federation of Small Businesses (FSB) is urging the government to look into producing schemes which would help those in the licensed trade to raise funds.

The government recently launched its New Buy Guarantee to encourage people to look at the possibility of owning their home, but no finance packages have been set to help small and medium-sized businesses to thrive.

The FSB is calling for the government to look into the possibility of facilitating a peer-to-peer lending system, where business loans can be obtained from a pool of investors.

For those looking for larger amounts of funding, say £250,000 and above, the FSB has proposed that a debt bond market be created.

“We need to accept that in its current form, our banking structure might never fully cater to the needs of the UK’s business community. We need to build alternative routes that connect savers and investors with viable small businesses eager to grow, and thereby introduce innovation and competition to the sector," John Walker, chairman of the FSB, said.

“We challenge the Government to look for short term wins, as well as thinking about the longer term and the kind of financial infrastructure we need to underpin our economy and support small firms to grow.”

Licensed Property News: 2012 could be a good year to buy a pub

Tue, 14 Feb 2012 17:13:47 +0000

This year looks like being a good time to invest in the pub trade.

Despite stories of doom and gloom, a survey conducted by business advisory firm Zolfo Cooper shows that the number of people visiting public houses is on the up.

On average Brits visit the pub 4.6 times a month. This is up from 4.3 per cent per month since last summer and significantly higher than in 2010.

However, the research shows that the average person is spending a little less on each visit, not that it really matters to landlords when they are calling in more often.

Similarly, UK restaurants and night clubs are reporting that while spending has slightly decreased the number of visits has risen.

Paul Hemming, partner of corporate advisory services at Zolfo Cooper, said: “Consumers now recognise that they still afford to go out regularly and enjoy themselves, provided they spend a bit less on each night out.”

Pete Brown of the Publican’s Morning Advertiser recently pointed out that 2011 was actually a very good year for the licensed trade despite stories to the contrary.

Licensed Property News: Hospitality firm Living Ventures plans 2012 expansion

Tue, 03 Jan 2012 08:22:53 +0000

Living Ventures is set to spend £8 million on the purchase and development of pubs and bars in 2012.

The north-west-based restaurant and bar firm intends to add to its 26 premises with seven new Oast House pubs.

The new openings will include new venues in Liverpool and Greater Manchester although the firm is also rumoured to have been looking at a site in the affluent Alderley Edge region of Cheshire.

"I see the Oast House as our onslaught into the 'pub' market, very much focused on the basics and what a pub should actually be in terms of the way it reacts to the whole community rather than just sections of it," company boss Tim Bacon told the M&C report.

Living Ventures announced steady profits in March this year, proving that contrary some reports the licensed trade is still thriving.

Indeed, Pete Brown of the Publican's Morning Advertiser recently said that 2011 has been a very good year for industry and publicans should have every reason to feel confident about what 2012 will bring.

UK Pub Sales News: 2011 was actually a good year for pubs

Wed, 14 Dec 2011 17:15:09 +0000

Unexpectedly, 2011 has been a good year for the licensed trade says Pete Brown of the Publican’s Morning Advertiser.

And Mr Brown says he is feeling very positive about what 2012 will have in store for those with or looking to buy a pub.

He feels that many of the claims about pubs failing are misleading as bad news is always reported more widely than good news and that CGA Strategy’s prediction that new pub openings will soon exceed closures as a good indication of the way which the trade is heading.

However, he points out that many of new openings will be a “different breed of pub from those which are closing: they’re more premium, more expensive, a bit flashier”.

His comments follow on from advice given by the All Party Parliamentary Beer Group recently, which said that adding a food menu to your pub's offerings is one of the best ways to boost trade.

UK Pub Sales News

UK Pub Sales News: Licensed trade set for growth over the next few years

Wed, 23 Nov 2011 12:34:15 +0000

The licensed trade in the UK will be flourishing again in the next few years.

Figures released by CGA Strategy highlighted that closures of public houses are now at the lowest level for more than four years.

Speaking at a media briefing for Suffolk-based cider producers Aspall, CGA's Scott Elliott said that the licensed trade was evolving due to forward thinking publicans and growth can be expected from 2015 onwards, reports In a Pub News.

“The ones that are opening are very different to the ones that are closing. 50 per cent of all new openings are a hybrid kind of concept. The café /wine-bar outlets with a good range of premium products including decent cask ales," he stated.

His comments follow on from advice given by the All Party Parliamentary Beer Group recently, which said that adding a food menu to your pub's offerings is one of the best ways to boost trade.

UK Pub Sales News

UK Pub Sales News: Pubs remain a solid investment, figures show.

Mon, 14 Nov 2011 14:28:19 +0000

Pubs and restaurants continued to defy the gloom and remain a solid investment, figures from Coffer Peach's Business Tracker show.

Collectively, like-for-like sales between the two sectors rose by 0.9 per cent during October.

Peter Martin of Peach Factory, which investigated the sector in partnership with KPMG and UBS, said that figures in the hospitality trade continue to grow because the recession did not slow down people's desire to go out to eat and drink.

He added: “Quality is still the main factor in choosing where to go out, but value is becoming increasingly important, and with the cost of eating-in and eating-out narrowing in many parts of the market, it remains an attractive proposition even for those with families."

His comments follow on from advice given by All Party Parliamentary Beer Group, who said that the licensed trade is still very lucrative providing pub landlords are prepared to diversify their offerings, particularly for traditional pubs branching into serving food.

UK Pub Sales News

UK Pub Sales News: Food sales could boost your pub's revenue

Fri, 11 Nov 2011 12:15:37 +0000

People looking to buy a pub should consider the benefits of serving food, says the All Party Parliamentary Beer Group.

Robert Humphreys, secretary of the organisation, warned that times are still hard for many in the licensed trade but he said that it is still a very lucrative and rewarding industry for those prepared to research their market and try new things.

For many pub landlords that could be starting a food menu.

"Increasing the amount of food you sell if you have the market to justify it is a very sensible approach in times when alcohol consumption is slowly declining," he said.

"It can be a bit risky, you are sticking your neck out a bit further if you decide just to go into high quality preparation and service but the rewards are considerable if you get it right.

"If you are diversifying from a more traditional pub model which is beer-based into other business activity it is a very sensible way of spreading risk and expanding potential markets."

Mr Humphreys advised that anyone making the move into running a pub should firstly get to know the market and ideally have some kind of experience in the trade, whether that be as a member of bar staff or as a manager.

He added that, while serving food is undoubtedly a good idea for many, there is no set formula for a successful business. He said that it is important to weigh up the cost of supply and extra staffing, such as an on-site chef and waiters.

His comments come following claims made by Michelin Guide editor Rebecca Burr, who said that gastro pubs were far outperforming traditional ones during the recession.

Last month the Hand & Flowers public house in Marlow, Buckinghamshire became the first pub in the UK to be rewarded with two Michelin stars, the golden seal of approval for any eatery.

UK Pub Sales News

Licensed Property News: BBPA plans to rid pubs of red tape lunacy

Wed, 02 Nov 2011 12:03:01 +0000

Existing landlords or people looking to buy a pub will be pleased to hear that the British Beer & Pub Association (BBPA) is urging the government to "stick to its guns" on planning reforms that will lead to a reduction in red tape for those seeking to make minor improvements to their premises.

At present public houses and breweries often have to endure long and costly delays when attempting to make often fairly small alterations.

But, at the same time as the BBPA submits evidence on the National Planning Policy Framework, the body is putting pressure on Westminster to follow through with proposed changes to the existing process.

BBPA chief executive Brigid Simmonds said the government is correct to pursue a reforming agenda as it is crucial to the UK’s growth and many jobs depend on it.

"We need a 'can do' culture from councils - and this means a presumption in favour of approving improvements or expansions of small and sustainable businesses like breweries or pubs, whilst of course taking on board legitimate development control concerns," she stated.

Last month Michelin Guide editor Rebecca Burr said that despite gloomy economic circumstances, the pub trade is still flourishing for many, adding “what recession?”

Licensed property news

UK Pub Sales News: Listed pubs for sale in the West Country

Thu, 16 Jun 2011 17:09:29 +0100

Property investors looking for pubs for sale might be interested to learn that two special properties in the West Country have come on the market.

ThisisDevon.co.uk reported that the Grade-II listed Ashill Inn in Culm Valley has been put up with a value of £295,000.

The freehold includes a restaurant, ground floor bar and commercial kitchen, along with two double bedrooms and a pool room.

Meanwhile, the Swindon Advertiser stated that the Queen's Head in Dunkirk Hill, Devizes, is also on the market.

The pub, which is Grade-II* listed, has been granted planning permission to undergo a change of use and be converted into a house.

Paul Redman, joint owner of the empty pub, told the news site: "We spoke to agents about it reopening as a pub but they were recommending lower rents for it and there were better conditioned pubs coming on to the market. Everyone was telling us that other pubs would survive before this one. It was obvious no one would want it."

He noted that turning the pub into a home raises its value and would allow it to be repaired properly.

"Structurally the property is pretty sound. There are no major defects but it does need a lot of work done on it," Mr Redman added.

Steve Oliver, negotiator at Paramount Investments, commented: "Although I'm sad to see another pub close, I'm pleased that this old building will be restored for future generations to enjoy the outstanding architecture."

UK Pub Sales News

Licensed property news: Localism Bill 'could affect pub sales'

Mon, 06 Jun 2011 11:28:37 +0100

People thinking of buying a pub might be interested to hear that the government's Localism Bill could affect the way purchases are made.

The British Beer & Pub Association has called for changes to be made to the community right to buy proposals under the legislation, as in their current form the organisation fears pub sales could be hindered.

Martin Rawlings, director of pub and leisure at the association, commented: "We want to see as many pubs stay open as possible - and community right to buy definitely has a role to play in keeping community pubs open. But many pubs are successfully bought and sold every day, and thrive under their new ownership."

He said the organisation would like to see the transfer of ownership process remain free of costly delays but retain the benefits and safeguards of the community right to buy proposals.

Meanwhile, director of strategies at the Association of Licensed Multiple Retailers Kate Nicholls told the Morning Advertiser that her organisation has raised concerns about assignment of leases.

Licensed property news

Change of Use News: Bolton pub 'to be turned into community centre'

Thu, 24 Feb 2011 17:03:20 +0000

A former pub could undergo a change of use and be transformed into a community centre.

The Bolton News reports that the Church Inn in Deane, could be refurbished by the Heaton Unity Association (HUA) charity and eventually host a library, classrooms and a computer area.

A spokesman for the HUA wrote in the planning application: "The centre would provide a drop-in facility for careers advice. People can get help with online job search, job applications and with general information technology access.

"We have enthusiastic volunteers, many of them professionals from all walks of life, but we are unable to tap into this vital resource due to the continual hurdles we face in the way of a suitable location to base our activities," the application explained.

Councillor Robert Allen of Bolton Council told the newspaper that the proposals sound good.

"Pubs are closing everywhere every day and if this one hasn't worked, it makes sense to change it rather than have a derelict building," he added.

Change of Use News

Change of Use News: Lincoln pub to be turned into flats

Tue, 15 Feb 2011 16:43:31 +0000

A former pub is set to undergo a change of use and be developed into a block of flats.

The disused Monks Abbey pub in Lincoln has obtained planning permission to be transformed into four flats, which will then be let out to students when construction is complete, the Lincolnshire Echo reports.

Andrew Wilding, planning agent for the site, said in his application that a decline in trade made it difficult to find an alternative use for the building.

"It is big enough to make a generous family home, but the area is too noisy and full of traffic fumes," he pointed out.

"The lack of reasonable car parking precludes the use as offices, while the present economic difficulties make it unlikely anyone would want the premises for retail."

He said this particular area of Lincoln appears to be flourishing, so the building could do well to contain two four-bedroom flats, one three-bed apartment and a two-bed flat.

Change of Use News

Change of Use News: Disused pub transformed into health centre

Wed, 02 Feb 2011 13:04:43 +0000

A disused pub has undergone a change of use and has now reopened as a health centre.

Formerly known as The Junction, the Pudsey-based Active Health Centre has been taken over by chiropractor John Turner, the Yorkshire Evening Post reports.

Mr Turner commented: "It was a bit like the Marie Celeste when we moved in, with lots of half-empty beer glasses lying around.

"We spent months stripping layers of wallpaper and getting rid of the fake Victorian decor but it's been worth it. The location is brilliant and we have people of all ages coming in. My oldest customer is 94 years old and the youngest a few months old."

The change of business use occurred after the pub became a victim of the recession and opened again to the public at the end of 2010.

The building itself was erected in the eighteen-thirties and now hosts health treatments such as massage, exercise classes and nutritional advice sessions.

Change of Use News

London Property Investment News: Commercial property in London 'sees strong return'

Wed, 19 Jan 2011 17:15:19 +0000

Commercial property in London and other parts of the UK has seen its strongest return in four years, according to research from Investment Property Databank.

The sector delivered a 14.5 per cent return in 2010, a significant improvement from the 2.2 per cent recorded the previous year, the organisation's monthly index showed.

Office space in London was one particular driver, with "a combination of global as well as domestic economic forces" fuelling this, managing director Phil Tily noted.

"A clear divide has returned to the UK property market - London versus the rest of the UK - which will be exacerbated as the impacts of the government's budget cuts take hold during 2011," he added.

Similarly, interest turned to buying a pub last year, Paramount statistics show.

Steve Oliver, senior negotiator at Paramount Investments, commented: "December was an extremely busy month for the Paramount Investment department with more than 30 properties exchanging contracts.

"There were a number of reasons for this - one was that vendors were more realistic in their aspirations on price. They also felt that with the VAT increases coming into effect in 2011 it made business sense to secure a sale now," he added.

In total, the property company sold 215 in the previous 12 months.

London Property Investment News