The pub and restaurant market is evolving as operators respond to cost pressures, changing consumer habits, and new policy developments, says property expert Christie & Co. That’s the takeaway as it launches its 2026 Pubs & Restaurants Market Review.
From January to August, the business was instructed to sell more than 360 properties, a 22% increase compared with the same period in 2025. It agreed over 230 deals, a 12.5% increase, reflecting exceptionally strong buyer demand.
Christie & Co also saw an increase in completion values of approximately £105,000 for freehold sales, on average, and an increase of approximately £87,000 for leasehold sales, on average.
Seventy-nine per cent of pub transactions were freehold, while 12% were leasehold and 9% were a new lease.
Many pubs are changing their business models. Traditional wet-led venues remain important community and sporting hubs, and some operators are moving away from food-led models to reduce labour requirements and operational complexity. Events, live sport, and experiential offers are becoming increasingly important ways to drive footfall and spend.
The report also examines the debate around hospitality VAT. The #VATsTheProblem campaign is calling for a reduction from 20% to 10%, arguing that retained revenue could support profitability, reinvestment, employment, and business values. Any reform remains a matter for government policy, but VAT is likely to stay high on the sector’s agenda into 2027.
Business rates are another focus. Pubs, clubs, and music venues in England are set to receive a 20% reduction in bills from April 2027, alongside an independent review of assessment methodology. However, near-term liabilities remain elevated. New planning protections for pubs in England may preserve viable community assets, but could also reduce redevelopment flexibility and place greater emphasis on underlying trading performance.
The Review notes that, across England, demand has been particularly high for traditional wet-led pubs delivering strong barrelage and community trade. Premium destination pubs with letting rooms have also remained highly sought after, particularly in affluent market towns, coastal locations, and tourist destinations.
It also reports that the finance market is becoming more supportive, with greater competition from challenger and specialist lenders broadening opportunities across wet-led, food-led, accommodation-led, and leasehold businesses. Experienced operators remain attractive to lenders, but well-prepared first-time buyers with relevant experience and a credible business plan can also access funding.
“As pub and restaurant operators continue to navigate significant cost pressures, staffing challenges, and broader economic uncertainty, we have seen a more dynamic property market in 2026, driven by a combination of resilient trading performance, motivated buyers, and sustained demand for quality hospitality assets,” said Stephen Owens, managing director, pubs and restaurants, at Christie & Co.
“The pub and restaurant landscape continues to evolve, as operating models shift to reflect changing consumer behaviours. While food-led pubs have steadily increased their share of the market over recent years, traditional wet-led venues remain an important part of the sector, particularly where they serve as community hubs, sports venues, and destinations for social occasions.
“As we move towards the end of 2026 and look ahead to 2027, we expect buyer demand to remain the strongest for businesses that are well-positioned, realistically priced, and capable of demonstrating clear growth potential.”
