As a market leader in the sale of freehold pubs, Fleurets is well positioned to examine trends in pub sales and comment on the figures for continued pub use against conversion for alternative use in 2013. They have now released their analysis of the figures.
Lower quality pubs more often sold for other uses
The number of ALL freehold pubs sold by Fleurets last year for continued pub use, increased for the second year running to 56%. However, the percentage of ‘bottom end’ pubs sold in the year that stayed as pubs reduced to 50% down from 52%.These figures suggest that it is the lower quality pubs that are more often being sold for other uses.
Average pub sale price £282k
The average sale price of freehold pubs sold by Fleurets nationally last year was £282,000 which was 7% higher than for alternative use. However in the south sales for pub use was £365,000, which was 6% lower than for alternative use. In the north sales for pub use was £230,000 which was 33% higher than sales for alternative use.
Viability vs value
This suggests that in the north more pubs are closing and selling for alternative use because they are no longer viable as pubs, but in the south there are more pub sales going for alternative use because of the higher values being generated. At only +6% higher, however, it is not a significant amount and it may well be attributable to a few very high value alternative use sales in central London.
Residential conversions increase, CV stores continue
Fleurets has continued to see a slowdown in the conversion of public houses sold for alternative use, but the most common end uses haven’t changed a great deal over the last four years. What can be seen from the end use figures is that there has been a continued increase in the percentage being sold for residential conversion/development which last year accounted for 59% of all alternative use sales. The other point of note is that the supply of pubs to convert to CV stores is continuing, and developers continue to identify suitable sites with many working directly with the big pub companies.