Local pubs potentially influencing house prices, as suggested by Zoopla.
New Study Reveals Impact of Local Pubs on House Prices
A new study has shed light on the relationship between the presence of local pubs and house prices in the UK. The research, conducted by real estate intelligence company Altus and Northumbria University, has found that pubs can have a significant impact on house prices, particularly in urban and metropolitan areas.
According to the study, a good selection of alcoholic drinks (62%) and a family-friendly atmosphere (56%) are the most popular aspects of a local pub for homebuyers. Nearly half the group (49%) feel that it is important to find places to socialise locally, and almost one in five (24%) of UK homeowners consider their house's local pub when deciding where to buy.
In urban/metropolitan areas, being near a pub generally increases house prices due to desirability and social benefits. This is because pubs and similar informal gathering spots, often referred to as "third places," contribute to neighborhood appeal by fostering social connection and providing amenities that enhance quality of life. Studies have found a significant positive association between the presence of such eating and drinking venues and increased housing values, especially in cities where these amenities are highly capitalized into property prices.
However, the effect is more muted or sometimes statistically insignificant in nonmetropolitan or rural areas, indicating that the social and economic context of the neighborhood largely shapes this relationship.
The study also found that the proximity to a local pub tends to have a positive influence on house prices. One mile appears to be the furthest most homebuyers will consider stumbling back from a local pub. Over half (53%) of those who visited a pub after viewing a property made the decision to purchase while at the pub, and almost one quarter (24%) of UK homeowners placed an offer on their future house from a public house.
The findings of the study have important implications for the pub industry, as many pubs have been struggling to stay afloat in recent years. According to Altus, 50 pubs closed down every month during the first half of 2024. Rachel Reeves, the Chancellor, reduced Alcohol Duty rates on draught products by 1.7% in the Autumn Budget, but many in the industry believe that the cut is insufficient.
Professor Ignazio Cabras of Northumbria's Newcastle Business School stated that preserving pubs from closure can help keep house prices stable and may even increase the value of local house markets. McClarkin, the CEO of the British Beer and Pub Association, stated that pubs are vital to the lifeblood of communities and that the "last thing any new mover wants to see is their local close their doors."
In conclusion, the study highlights the importance of local pubs in shaping house prices, particularly in urban and metropolitan areas. Homebuyers value the social and community aspects of pubs, and the presence of a well-maintained and popular pub can contribute to the character and livability of a neighborhood, thereby increasing its desirability and house prices. Therefore, if you are considering how a local pub might influence house prices in a given neighborhood, the key factor is the area's urban context and the pub's role as a valued social hub rather than a source of disruption.
[1] Northumbria University, "New research reveals the impact of pubs on house prices," 2020. [3] Cabras, I., & Griffiths, A. (2018). The role of pubs in shaping the value of local housing markets. Journal of Urban Affairs, 40(2), 207-228.
- The proximity of a well-maintained and popular pub can influence house prices positively, particularly in urban and metropolitan areas, as it contributes to a neighborhood's desirability and livability.
- For homebuyers, a family-friendly atmosphere and a good selection of alcoholic drinks are the most important aspects of a local pub, which can also impact house prices.
- The study also implies that in nonmetropolitan or rural areas, the social and economic context of the neighborhood may diminish or render inconsequential the relationship between pubs and house prices.
