Lower quantity but higher quality of pubs forecast

Pub closures reached a peak of 26 per week in 2010 as beer sales declined by 7.6 per cent amid speculation about the economic recession, new laws, landlord ties and changes in customer drinking habits.

Last year, there were 16 pub closures a week and a decline in beer sales in pubs of 3.4 per cent. Colliers International has handled 280 pub disposals in Yorkshire in the last three years.

Leigh Parsons, head of licensed and leisure in Leeds, said: “In a nutshell, we have too many pubs and the laws of supply and demand mean numbers will continue to decline. How far and for how long we can only guess.

“However, it may well prove the case that a lower quantity of pubs will lead to higher quality. Whether it’s a multiple high street pub chain or Mr and Mrs Smith providing a cosy welcome and home-cooked food, a greater appreciation of good food and high quality beer and wine in a welcoming ambience will always appeal to enough of us to keep a core of the very best traditional pubs thriving for years to come.”

In Yorkshire and the Humber last year, there were 5,327 pubs, employing 83,786 people, according to Oxford Economics research. Mr Parsons said: “The recent economic recession has certainly made life extremely difficult for pub owners and operators but the decline started long before these difficulties and is likely to continue long after bankers regain confidence.”

Most pubs sold are taken on by new owners who want to re-establish them as drinking venues, including the George at Wath near Ripon.

However, a significant proportion are sold for alternative uses, including convenience stores, gyms, offices and apartments. Others have been demolished as part of a re-development and a number have found a new life as restaurants.

n Colliers International UK was yesterday bought by Canadian firm FirstService, which owns almost 90 per cent of the company, in a pre-pack administration deal.

The London-based PLC, which initially confirmed it was in talks with FirstService about a potential deal in January, said the deal was struck after an administrator was appointed yesterday morning.

In a statement, it said: “Given the level of debt within the company... the transaction will realise no value for the ordinary shares.” The UK management team remains unchanged.