Happy Hour for Property Investors - 15/10/09
With pubs closing at record rates, property investors are picking up bargains. Since January, pubs sold at auction were worth £53,539,000, with experts predicting more will end up in the auction room in coming months. Last year £58,731,000 was raised.*
Research for the British Beer and Pub Association (BBPA) showed 52 pubs closed every week in Britain for the first six months of this year.
Chris Baguley, director of Auction Finance Limited which lends to investors buying property at auction, said:
"Investors are converting pubs into restaurants, convenience stores, nurseries and apartments, or selling the vast space for storage. They're generally in excellent locations, many with large car parks and gardens. We recently financed a pub that was turned into an adult education centre. It's perfect for this use due to its location in a densely populated residential area.
"This trend is occurring throughout the UK, as the commercial property market shows signs of recovery."
A dip in consumer confidence during the recession, coupled with the smoking ban and competition from supermarkets means pubs across the UK are closing.
*Figures taken from Essential Information Group, which monitors auctions across the country www.eigroup.co.uk