The property adviser’s latest Pubs & Restaurants Market Review revealed that within the eight-month period the business was instructed to sell more than 360 properties, and agreed more than 230 deals, a 12.5% increase on the year before.
Christie & Co say the figures reflect strong buyer demand across the pubs and restaurants market, with average completion values increasing by approximately £105,000 for freehold sales and £87,000 for leasehold sales.
Freehold transactions accounted for 79% of pub deals, while 12% were leasehold and 9% involved a new lease. Restaurant transactions were split between new leases at 44%, leaseholds at 37% and freeholds at 19%.
“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,” says Stephen Owens, managing director for pubs and restaurants at Christie & Co.
“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.”
Changing consumer habits reshape operating models
The report highlights changing consumer behaviour as a key factor affecting pub and restaurant businesses. Christie & Co says dining out is increasingly becoming a planned activity rather than a spontaneous one, raising expectations around food quality, service and the overall customer experience.
Value-led and quick-service restaurants are outperforming much of the mid-market, according to the report, while premium dining has also faced pressure, with a number of Michelin-starred restaurants closing during 2026.
The report also states that within the pub sector, some operators are moving away from food-led models towards wet-led operations, reducing labour requirements and operational complexity with events, live sport and experiential offerings becoming increasingly important to pubs seeking to drive footfall and customer spend.
VAT and business rates remain key issues
The report also examines the ongoing debate around hospitality VAT, including the #VATsTheProblem campaign, which is calling for the standard rate to be reduced from 20% to 10%.
The campaign argues that a lower VAT rate could support profitability, reinvestment, employment and business values. Christie & Co notes that any change remains a matter for Government policy but expects VAT to remain a key issue for the sector into 2027.
Business rates are also highlighted. Pubs, clubs and music venues in England are set to receive a 20% reduction in business rates bills from April 2027, alongside an independent review of the assessment methodology. The report notes that near-term liabilities remain elevated.
It also considers new planning protections for pubs in England, which could help preserve viable community assets while potentially limiting redevelopment flexibility and placing greater emphasis on underlying trading performance.
Buyer demand focused on resilient businesses
Christie & Co says buyer demand has been particularly strong for traditional wet-led pubs with established barrelage and community trade. Premium destination pubs with letting rooms have also remained sought after, particularly in affluent market towns, coastal locations and tourist destinations.
The exceptionally warm summer weather also increased demand for venues with outdoor trading space, according to the report.
The finance market has also become more supportive, with increased competition among challenger and specialist lenders creating more funding opportunities across wet-led, food-led, accommodation-led and leasehold businesses.
The report says that while experienced operators remain attractive to lenders, first-time buyers with relevant experience and credible business plans can also access funding.