Leisure property specialist Fleurets has released its latest Survey of Pub Prices, showing how rising operating costs are affecting the UK pub sector.
The sector faced mounting pressure throughout 2025, as increases in wages, National Insurance, and business rates, coupled with a squeeze on spending, affected profitability and confidence.
Labour costs alone rose by an estimated £3.4 billion across hospitality. Despite resilient consumer demand in parts of the market, many pubs struggled to mitigate the increased costs.
The latest data show that these pressures are feeding through into lower sale prices, subdued transaction activity, and continued pub closures.
Key data highlights are as follows.
Freehouse average sale prices
National: £800,364 (-9%)
North: £473,000 (+8%)
South: £950,000 (-3%)
Leasehold Market
Nationally, average sale price £37,000 (-24%)
Fleurets’ survey found that 69% of all pubs and 83% of freeholds sold remained in use as pubs. Bottom-end pubs are more vulnerable: 56% of bottom-end pubs stay as pubs; 74% of pubs sold for non-pub use were lower-quality sites.
Pubs sold as trading businesses achieved prices 86% higher than alternative-use sales, with the average pub sold for pub use selling for £616,000 (-9.3%).
The figures highlight clear differences in market performance, with stronger pubs commanding higher prices while lower-quality sites face greater challenges.
“Rising wage costs, higher National Insurance, and increasing business rates have reduced the profits pubs can sustainably generate,” said James Davies, director and head of national agency at Fleurets.
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“Buyers price pubs on future earnings, past performance is just a guide, and the pressure on profit is now feeding directly into lower sale prices, particularly at the bottom end of the market.”
“We are seeing a more clearly segmented market. Premium food-led pubs, particularly those with accommodation, and value-led community pubs continue to perform well, while under-invested pubs without a clear offer are increasingly vulnerable.
“Opportunities still exist for operators with the right strategy and resources, but pubs at the bottom end face the greatest risk. Targeted support and improving economic conditions will be critical to help many pubs survive.”
Looking ahead to 2026, further increases in wages and business rates will add further cost pressures, says Fleurets, although a forecast reduction in interest rates may support renewed investment activity. Corporate operators remain acquisitive, particularly for well-positioned, sustainable pubs that fit a clear operational model.
