Fleurets has published its annual statistics and analysis of the sale price of public houses for the year to September 2013, reporting that the public house property sector involved many of the same dominant market forces as the previous four years. At the bottom end a continued strong supply of Pub Co sales from the big six tenanted pub operators was supplemented by an increase in administration sales.
Finance continued to be restricted and economic uncertainty was the underlying trend. However, as the rationalisation of the Pub Co estates entered its fifth year, residential values were increasing in some areas and with improved like for like sales figures being published by several multiple operators, there were signs that things could be starting to change.
Highlights
National
- 38% increase in the total number of pub transactions
- £148m total transaction value – up 61%
Bottom End Freeholds
- No change to average sale price at £217,403
- Multiple of FMT down in both north and south
- 54% sold for less than £200,000
- 50% of sales were for non pub use
Leaseholds
- 3.7% increase in average sale price nationally
- Small decline in multiple of FMT north and south
- 36% tied lease transactions
- Double the number of £100k+ leasehold deals
Freehold Freehouses
- –12% decline in average sale price nationally
- 138% increase in number of freehouse sales
- 60% of transactions in the south
- 74% of freehouses sold for continued pub use
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