Leasehold pub market has been ‘decimated' in past year, says Fleurets
Sales of leased pubs have been "decimated" over the last 12 months, according to property agents Fleurets.
The company said that, while historically 50% of its business has been selling leases, 70% is now selling freeholds for the pubcos.
The company added that, for the second year running, the majority of freehold sales had originated from the pubcos disposing of former leased and tenanted pubs. Many of the properties sold on behalf of the pubcos were sold after being closed, or in some cases, vandalised.
However, successful freehold freehouse owners have resisted the temptation to sell in the current market, which has seen cash-rich buyers drive a hard bargain thanks to the lack of availability of credit.
Meanwhile Barry Gillham, chairman of Fleurets said: "It would be fair to say that the leasehold market has been decimated over the last 12 months, resulting in fewer assignments, and those that have sold, achieving prices of around 50% of those that pertained for the previous 15 years."
The company said that freehold freehouse prices have risen steadily from more than £200,000 in 1999 to nearly £700,000 in 2007. But the last two years has seen prices return to an average of £556,000.
Prices for leaseholds had risen steadily from around £50,000 in 1993 to £80,000 in 2007/08. However they have now nearly halved to an average of £48,000 and considerably lower in some areas.
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](http://www.caterersearch.com/Articles/2009/11/24/330997/hotel-guesthouse-or-b.html)*By Neil Gerrard*
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