NAEA Propertymark Commercial has welcomed a recent increase in investment in the UK’s pub industry
A recent pledge from a large industry player promises £40 million this year to enhance their national footprint and aims to create an additional 1,000 new jobs, alongside a previous investment of £194 million in between 2020 through to the end of 2024.
Over 600 pubs will benefit from improvements during this year, with 104 of these ringfenced for transformational revamps costing over £1,200,000. Many of these pubs are based in rural and suburban areas, which is hoped will deliver strong sustainable growth for the sector across the coming years.
However, there has been recent research conducted in March 2025 which found there was still significant concern for certain aspects of the sector in specific geographical locations, with 11 per cent of currently operating pubs at substantial risk of closure due to ever evolving consumer habits. This precarious position for many British pubs was further illustrated by Propertymark’s Q4 2024 Commercial Outlook report, which found that sentiment in the pubs and restaurant sector remains negative currently.
Michael Sears, NAEA Propertymark Commercial Advisory Panel Member, said:
“There are still many challenges for pubs to overcome such as increases in the minimum wage and National Insurance, as well as the supply of labour issues, which will require imaginative solutions.
“Many pubs and restaurants are much valued community hubs, so it is extremely positive to see fresh investment within this arena. It is a sector that has faced an enormously challenging business landscape over the last few years, as consumer habits change.
“It is extremely positive to witness a revitalised confidence from individual players and larger groups alike. It remains important however to ensure any program of investment in new pub openings is carefully considered and forms part of a wider development strategy to help maintain long term sustainability and robust return on investment.”