WalesOnline - News - Wales News - Last orders for 400 of our pubs sheds light on trade’s difficulties

THE scale of the decline of the traditional Welsh pub was laid bare today as figures revealed more than 400 are currently up for sale.

As the industry struggles, trade experts have spoken out about the crafty tactics some buyers use to benefit from the knockdown prices and warned many pubs would “cease to exist”.

But a property specialist and a Government minister sounded a note of caution to the stark warnings, claiming the outlook for the industry is good.

Between five property agents, there are 413 pubs on the market in Wales at the moment.

Brewer Simon Buckley, director of Evan Evans in Llandeilo, feared there would have to be a “cull” of pubs across Britain.

He said: “The simple fact of life is that we are still oversupplied with pubs in the UK by about 10,000 units.

“There will have to be a cull of pubs – it’s inevitable. Some will disappear and others will change into houses. Many rural pubs will just cease to exist.

“I think what has got to happen is inevitably a rationalisation of pubs, and it is going to go on happening.”

Brian Francis, from the Campaign for Real Ale (Camra), said savvy buyers were able to take advantage of breweries selling off large properties at low prices.

He said: “Some people have bought pubs with a specific view to not using them as pubs. They decide it is not really economic and all they really wanted was a house.

“Some people see a pub as a retirement home and just want to convert it into a home. There is an element of that, particularly with country pubs.

“Sometimes the pub is the hub of the community – it is a meeting place and practically everything goes on there so it is quite an essential part of village life.

“We would object to a change of use if we felt it was a loss of amenity.”

Anyone buying a pub in the hope of turning it exclusively into a home would be forced to apply for planning permission.

Mr Buckley said buyers could cash in now and wait for the property market to improve before selling off some of the land for development.

He said: “One of the things that comes with pubs is large car parks. When the property market returns, what they are effectively doing is buying a cheap plot.

“If you look at some of the pubs around and outside Cardiff you could get two or three houses in the car park alone.”

But he warned the trade was no longer a place for people without experience.

He said: “The cost of running pubs is just staggering – the rates have gone up 20 or 25% in the last year alone.

“Running pubs is no longer for the amateur, it’s for the professional. Unless they are professional it’s going to fail drastically.

“There’s no question about it, tenanted pub company tenants are having a really hard time. They have to pay a very high rent and don’t get a discount on drinks from the brewery.”

The high cost of alcohol in pubs compared to the offers available in supermarkets was cited as one of the main reasons for the difficulties pubs are finding themselves in.

Mr Francis said: “Low supermarket prices mean you can walk in and buy all sorts of cheap alcoholic products. People are tending to drink at home because they are being priced out.”

He added: “Spending a night in the pub is not a cheap thing to do any more. The Government is looking at minimum pricing and that may do something to help the ailing pub trade. Camra would certainly support a degree of minimum pricing.”

The latest statistics available from the British Beer and Pub Association show there are 52,000 pubs in Britain, and 28 are closing every week – a rate of four a day.

But John Penrose, minister for tourism and heritage in the new coalition government, said efforts would be made to ensure the survival of pubs.

He said: “The Government recognises the value of pubs to local communities, both socially and economically. As well as being a hub of social activity, the community pub provides local employment, uses local services and buys in local goods.”

Robin Mence, managing director of licensed property specialists Sidney Phillips, said the high level of availability was because the major chains were looking to sell off some of their less profitable pubs.

He said: “Now they are rationalising their estates and looking to retain their high-yield pubs, not low-yield pubs.”

And Mr Mence said the industry was still healthy, despite the number of pubs closing their doors.

“An increase in utility cost and many other basic overheads has made former rental levels unsustainable, leading to some pubs closing – this is not a reflection on the pub trade,” he said.

Running pubs is no longer for the amateur, it’s for the professional

via walesonline.co.uk

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