Press Release Summary: Why Buy A Pub Now? Because pubs are cheap due to the smoking ban, competition from supermarkets or just changes in the way we live. The licensed property market is being flooded with cheap empty pub sites ahead of the scrapping of concession rates for empty commercial properties.
Press Release Body: Pub companies and pub owners will soon be obliged to pay full rates on empty properties (after a three month holiday) up from the current 50%. This will significantly increase the cost of holding on to non-trading pubs.
Under the current system landlords pay no business rates on empty pubs, houses and commercial property for the first three months and 50% thereafter.
But from the 1 April landlords will have to pay full business rates after three months - something many pub company owners will not be prepared to do if the site is not trading.
Punch Taverns is selling a package of 39 pubs following a review of its property portfolio.
The UK’s largest pubco has identified the pubs, which are spread across the country, “as part of the ongoing strategic review of our estate”, said a spokesman.
“We usually identify somewhere in the region of 100 leased pubs each year for disposal.
“We currently have a package of 39 pubs for disposal and are talking to a number of possible purchasers,” the spokesman added.
Meanwhile, with full rates being applied to vacant properties from April 1, Punch had \"no plans\" to speed up the disposal of sites.
“We do not expect the rating changes in April to have any effect on the usual churn of our estate,” said the spokesman, who would not confirm the number of unoccupied pubs on the group’s books.
Mark Grieg, managing director of property firm Paramount Investments, said prices could be depressed by the new rate regime.
“Pubcos will find themselves having to pay full rates on vacant properties whereas previously they paid nothing for three months and 50 per cent thereafter.
“My view is that they will seek to sell these pubs, and that this will depress prices.
“Add in the effect of the smoking ban this winter, the credit crunch and recession fears, it seems likely the pub property market is undergoing a dramatic shakeout.”
Web Site: http://www.paramount-investments.co.uk/
Contact Details: 150 West End Lane London NW6 1SD T +44 (0)20 7644 2300 F +44 (0)20 7372 2712 E info@paramount-properties.co.uk
2012
