‘Buoyant’ Pub Market in South West
The Exeter office of Christie & Co enjoyed a very successful year for public house sales across the south west, with in excess of 30 pub deals brokered in 2007, reports Jon Clyne, public houses negotiator.
This year began on a high note with the completion, on 4 January, of the acclaimed Nobody Inn in Doddiscombsleigh, east Devon, from an asking price of £1.6m. This west country freehouse was sold to a group of investors. The sale generated very strong interest and a number of bidders, proving that quality freeholds remain in high demand but short supply, securing very competitive prices.
The year, so far, has continued in a buoyant mood with a number of completions and a flurry of new instructions to the market on behalf of private and corporate clients.
With the ongoing shortage of quality freehold units, 2008 promises to be another busy year for Christie & Co’s Exeter office as the south west proves as popular as ever with pub buyers. With the licensed sectors in Devon and Cornwall remaining predominantly tourist-orientated, quality freeholds and leaseholds pubs are highly sought after by private individuals, regional pub companies and national operators alike, with competitive bidding situations quickly arising.
In our experience, licensed operators have responded well to the smoking ban and other challenges be seeking alternative income streams such as a focus on food or letting accommodation.
Christie & Co’s average price index shows that average pub values rose by 6.5% during 2007. Although this increase is modest compared with the 8.5% increase we witnessed in 2006, it is still moving in the right direction and demonstrates the pub market’s ability to continually adapt to the challenges it has faced over the past few years.
Despite a number of challenges during 2007, we are pleased to report that pubs in the south west are responding to opportunities and the deals are still being done. The UK economy has demonstrated its resilience many times in the past and we don’t doubt that it will continue to do so during 2008.

Land Registry Guides Against Fraud
Land and buildings are usually the most valuable assets people own and because they can be sold and mortgaged to raise money, they are often attractive targets for fraudsters.
Land Registry has recently published two new guides which advise members of the public:
* how the risks of a successful fraud can be minimised
* when evidence of identity is required if lodging an application to register a property.
Public Guide 17 – How to safeguard against property fraud explains the simple steps that can be taken to help prevent fraud or forgery.
For example:
* If your property is not already registered, consider applying for voluntary first registration which offers a 25% discount.
* Keep your name and address on the register up to date.
Public Guide 20 – Identity checks provides guidance on when evidence of identity must be lodged in support of an application for registration.
Like many other organisations, Land Registry has been investigating additional safeguards to deter and prevent fraud. As there is a higher risk of fraud when a solicitor or conveyancer does not represent the applicant, Land Registry is widening the types of applications where evidence of identity is required.
From 3 March 2008, identity checks are being introduced to include situations where parties to transactions are not legally represented.
Land Registry, professional conveyancers and mortgage lenders all have safeguards to minimise the risk of a fraud being successful and this includes checking the identity of clients and parties involved in transactions affecting property. Its requirements are similar to the identity checks made by other bodies, including banks.
Public Guides are available free from all Land Registry offices.

ICBA set to launch new qualifications
A leading body representing commercial property agents has launched two new qualifications for those keen to undertake non-domestic Energy Performance Certificates (EPCs) when legislation comes into force in 2009.
The Institution of Commercial & Business Agents (ICBA) has confirmation from the government’s regulatory body, the qualifications and Curriculum Authority (QCA) of its status as an awarding body for two new qualifications – the Certificate in Non-Domestic Energy Assessment (Level three), the Diploma in Non-Domestic Energy Assessment (Level Four).
The new rules introduce the requirement for an EPC on all commercial properties above 50 sq m when they are constructed sold or let.
The move is in compliance with the European Commission’s Energy Performance of Building Director (EPBD) and there will be a phased roll out across the non-domestic (commercial) sector during 2008. An accredited qualification will be a legal requirement for any individual carrying our EPCs on commercial property.
ICBA’s Level 3 qualification will enable holders to undertake EPCs on existing non-dwellings with frequently found characteristics – for example simple heating systems, simple natural ventilation (which accounts for about 70% of all none-domestic properties) while the Level four will enable holders to undertake EPCs on both new and existing properties on the majority of all non-domestic properties.
Charles Smailes, chair of ICBA, said: “Under the new regime, commercial property will be divided into three types for the purpose of EPCs.
The most complex buildings will probably require energy assessment by professional building engineers. However, our new qualifications will enable assessors to undertake EPCs on most other buildings.
We are confident that with our strong track record in the training and professional development arena, we will attract significant demand from those keep to progress in their careers in the commercial property sector, or take up the opportunity created by this new legislation.”
Courses are now open to candidates in a range of centres across the UK.

Underinsurance
Nearly half of all property owners are underinsuring their buildings, warns Norwich Union.
A sample of just 47 valuations carried out for the insurance company revealed underinsurance of buildings totalling £130m.
Professional valuations are essential to ensure accurate cover, according to Mike Colmans, property owners underwriting manager, Norwich Union: “Under a lease agreement, property owners are obliged to ensure their property for the full rebuild cost.
Often however, property owners will have had a mortgage valuation done, which may not take into account all of the elements involved in the building. For example, the cost of replacing walls, gates and outbuildings or removing debris. Therefore, the building will be underinsured and the figure may become increasingly inaccurate over time.
This can have a significant impact on any property owner when it comes to making a claim. If adequate insurance is not taken out, tighter lending conditions and increased borrowing costs due to the credit crunch could make it very difficult to find the necessary funds themselves to rebuild a property.
As it is usual for the tenant to fund the premium, it is a common misconception amongst property owners that they are doing their tenant a favour by saving them money if the property is valued at a lower amount.
It is therefore essential that the property owner ensures their lease obligations are met and the resulting premium is calculated on the correct basis.”.