What future for traditional British pubs?

DARLING CALLED ON TO DROP PLANS FOR BEER TAX RISE

Tories today called on Chancellor Alistair Darling to drop plans for 
further increases in taxes on beer in his April Budget because of
the threat to the future of the traditional British pub.

Shadow ministers described the pub as a “vital British institution”, and
claimed thousands faced closure because of steep tax increases planned by
the Government. Pub beer sales were also down 10 per cent in the quarterly
beer barometer published last month.

The British Beer & Pub Association said tax revenues from beer were already
down £181 million since last year’s Budget, and forecast further falls in
the Chancellor’s income because of the beer duty escalator introduced by Mr
Darling.

Association chief executive Rob Hayward said: “These figures highlight the
extreme economic pressures hitting Britain’s beer and pub sector. Beer sales
are sinking and many pubs are struggling to survive. Pub closures have
escalated to nearly six a day. 

“Unfortunately, Government tax policy is only making a difficult situation
worse. Due to the Government’s tax escalator and VAT policy, we are facing
two further tax increases this year alone. By the 2012 Budget, the tax on
your pint of beer will have increased by up to 40 per cent from February
2008.

“We are not asking for a tax handout, like other sectors. We just don’t want
our tax burden to be made worse. When it comes to stimulating the UK
economy, the Government should not and must not turn a blind eye to
Britain’s beer and pub sector,” said Mr Hayward.

Shadow culture secretary Jeremy Hunt said: “We all have our favourite local
pub but up and down the country people have been losing theirs. Not only are
they a critical part of our heritage but they are often hubs for local
communities helping social groups, sports clubs and often even the village
shop. 

“For too long the Government has tried to tackle binge drinking by punishing
responsible drinkers and landlords. With massive tax hikes and heavy handed
regulation all Labour will succeed in doing is closing down more pubs. This
has to stop.” 

Shadow business minister Mark Prisk added: “Pubs are often small family-run
businesses. Not only are they the social heart of their communities, they
also provide jobs.” From the Shropshire Star

211 Pubs have closed down in Midlands

MIDLANDS PUBS Region’s pub hit hardest

More pubs are closing across the Midlands than in any other part of the
country - new figures have revealed.They were shutting at the rate of eight
a week over the last six months of 2008, according to the British Beer & Pub
Association.

A total of 211 venues closed – the highest number of any region of the UK –
as more than 1,000 pubs shut down nationwide.It is the first time the BBPA
has revealed data for the Midlands and it confirms the region is being hit
by a nationwide problem.

Landlords face bigger bills at the same time hard-up punters are turning to
cheaper supermarket booze. Enthusiasts at the Campaign for Real Ale have
warned that up to 100 pubs a month could close this year. From Express and
Star

Commercial property for sale in England, Scotland and Wales

Paramount Investments offer Pubs for sale, Clubs, Wine Bars and Inns for sale, Hotels and Guest houses for sale, Restaurants, Tea Rooms and Takeaways for sale throughout England, Scotland and Wales

We also have a large and comprehensive register of Grocery Shops for sale, Newsagents for sale, Post Offices for sale, Supermarkets and Convenience stores for sale, Marine businesses for sale, Care Homes for sale, Retirement Homes for sale and Nursing Homes for sale.

UK pub conversions and redevelopments

6 pubs a week are calling last orders for the last time,
as reported by the campaign for real ale CAMERA. With cinemas being
converted into trendy bars the old Victorian pub is struggling. Many are
being sold on to developers for conversion into family homes or apartments.
Pubs have features which make them ideal for conversion; they already have
multiple separate entrances; they have large cellars with high ceilings;
multiple floors, all with large airy rooms. Furthermore, if yours has not
undergone a ghastly refurbishment in the past 30 years you may have all the
period features of the century it was built, which could be anything from
14th century beams up to Victorian cast iron fire places. Permission to
convert to a residential dwelling is not always guaranteed with the only pub
in the village unlikely to be given the go ahead conversion to apartments
and three executive houses on the car park. You would be more likely to get
permission on a city centre pub, and many are advertised with full change of
use/planning.

Save the Pub - Axe the Tax

AXE THE TAX CAMPAIGN Uk pubs are closing at a rate of 5 a week with the
blame being placed firmly on the smoking ban, the credit crunch and the
availability of cheap booze from supermarkets. Theres more to come for pub
landlords as Alistair Darling plans tax increase on beer sales and the
Scottish Parliament introduces a bill to ban cigarette vending machines in
pubs.

The pub trade is fighting back with the Axe the Tax; Save the Pub campaign
launched at the end of January and with supporters from the worlds of
politics, celebrity and the brewing industry. The campaign has been helped
by high profile supporters who have pushed the ‘Save the Pub’ campaign to
the top of the political agenda, with 47 MPs supporting the campaign through
an Early Day Motion in Parliament.

Supporters of the campaign emphasize that
British breweries employ 20,000 people with a further 30,000 dependent on
the brewing industry and 394,000 further jobs in hospitality and retail
sectors dependent on beer.

Pubs for sale with planning permission for redevelopment

Paramount to sell 25 freehold pubs: Property agent Paramount Investments has put 25 freehouses, worth a total of £12.2m, up for sale.

Prices vary from £110,000 to £2m, with 10 pubs for sale on the list worth £600,000 or more, and three are worth over £1m.

The pubs for sale are distributed throughout England, including several in London, and all are owned by private individuals.

Paramount managing director Mark Greig said: “Part of the reason these pubs are so valuable is that in some cases they come with planning permission for redevelopment.

“While you are waiting for planning permission in the current market, values will probably fall. But if you buy a property with planning permission, you can get on with your property development, modernisation or refurbishment project straight away.”

Three pubs are for sale at more than £1m each are The Golden Lion in Rotherhithe, South East London (£1.1m); The Shakespeare’s Head in Percival Street in the City of London (£1.2m) and The Wagon & Horses in Hayes, Middlesex (£2m).

Planning permission on some of the properties would allow new owners to start building rooms over the main pub to expand business through accommodation, added Greig.

Old pubs make a spectacular home and you get more space for your money too

Five pubs a day are closing and as many as 7,500 may disappear by 2012, says the British Beer & Pub Association, in an article in the Daily Mail by David Spittles

With many premises boarded up and for sale at knockdown prices, now is a good time to buy a pub for conversion into a spectacular home, flats or live/work space.

Big pub chains have gradually replaced traditional breweries as the main operators of Britain’s 57,000 pubs.

They have been hit hard by beer tax hikes, smoking bans, cheap supermarket booze and the economic downturn, with plummeting beer sales at their lowest since the Thirties, and are making vast disposals.

These companies, often owned by banks, were more interested in pubs as property investments than in pints but with savage cuts in property values they are now hit from both angles.

Publican tenants are even volunteering to hand back the keys because they cannot make a living from the business, reports the Campaign for Real Ale.

Many pubs are being sold freehold with vacant possession, while others have short 'fag-end' leases where the freehold can eventually be acquired.

Bargain prices mean the bricks-and-mortar value of the building is enough to make purchasing attractive, without having to rely on immediate income from running a business.

'We sold more than 200 freehold pubs last year - from £50,000 to £500,000 - to an amazing range of buyers,' says Gavin Sherman of specialist agent Paramount Investments.

Pubs have a flexible A4 planning 'use class' that normally can be changed to A1 use (say, for a newsagents), A2 (a delicatessen or a firm of solicitors or architects) or A3 (restaurants).

Alternatively, buyers can apply for planning permission to convert the building into a residential property.

Often pubs come with land, beer gardens or car parks that can be developed.

'Unless it's a village pub, where community issues come into play, planners are sympathetic to alternative uses. Pubs close because they are not successful businesses and re-use helps regenerate the area,' adds Sherman.

The cheapest freehold pubs in London cost from about £200,000. In particular, back-street neighbourhood pubs and locals in suburban areas are struggling because of the break up of old communities and other demographic changes.

In run-down areas, planners often want to keep a commercial use for the pub because this boosts local employment.

Many Victorian pubs are listed, which can complicate conversion projects.

Conservation groups, such as English Heritage and The Victorian Society, are fighting hard to stop demolition or 'unsympathetic changes', arguing that hundreds of gems have already disappeared.

Grade II listing, which many pubs are, only really protects the exterior of the building, not the interior, which probably has been butchered in the past anyway.

Live/workers, especially those in the creative sector, who want to transform the bar area into a studio or office while keeping the accommodation above intact are often looked on favourably by planners.

Buying a pub is likely to work out cheaper on a pounds per sq ft basis than buying a house in the same street. But the refurbishment costs can blow your budget.

The realistic minimum fit-out cost is about £100 a sq ft (say, £200,000 for a 2,000sq ft pub) but this could rocket if you have expensive tastes.

Before you buy, especially if the pub is in a conservation area, ask local planners about their attitude to the property.

Pubs often sell at auction, either as vacant freeholds or as 'cold investments'.

With the latter, the freeholder collects rent from the leasehold tenant, but there is potential for redevelopment or re-use at a later date.

Investment 'yields' are now typically six per cent plus, double the return of three years ago,

Domino's Pizza set to open in Rising Sun pub, Devizes

THE Domino’s Pizza chain has applied for planning permission to turn part of the Rising Sun pub into a takeaway.

The opening will create 25 new jobs, said the company.

The pub has had a chequered career over the past few years and it was recently acquired by London-based Paramount Investments.

Spokesman Andy Burnyeat confirmed that agreement had been reached with Domino’s to take over half of the premises for a pizza takeaway.

The other half is also to be rented out for retail use, but as yet there are no plans for that.

Mr Burnyeat said: “It is pretty definite now that the Rising Sun will no longer be a pub.”

The left-hand side of the ground floor will be converted into a takeaway, with a counter, a preparation area behind it, an oven area, a washing up area and staff toilets.

A letter from Domino’s supporting the planning application said: “The unit is within walking distance of many local residences.

“The investment in the unit would not only completely refurbish it but would also encourage other landlords and tenants to invest in surrounding properties.

“The proposed use would bring a high level of investment into the building and the shop fitting and installation of equipment is to the highest specification. It would also turn a vacant unit into economic use.”

A spokesman for Domino’s said: “We’re planning to open 50 new stores across the country this year as part of our target to have 1,000 stores by 2017.

“We are continually researching and reviewing locations across the UK in which to open these new stores.

“We are very keen to open a Domino’s Pizza franchise in Devizes and it will create around 25 new jobs in the area.

“We hope that we will be able to bring fresh oven-baked pizza to the Devizes area in the very near future.”

Andrew MacLachlan, chairman of Devizes Chamber of Commerce said: “This is great news. Firstly, I am delighted it is no longer going to be a licensed premises, but I am equally delighted that another national chain is putting its faith in the town.”