Rents for city centre pubs, bars and restaurants could drop because of licensing legislation due to be passed next year.
The Licensing Bill, announced in last weeks Queens Speech, will abolish fixed opening hours and potentially allow licensed premises to serve alcohol 24 hours a day.
But the changes will also introduce limits on capacity and will make it far harder and more expensive to obtain new licences, especially in residential areas.
Trevor Watson, director of special projects at Davis Coffer Lyons, said the Bill was deceptive: “The new regime will impose far stricter controls on operators and less flexibility than under the current regulations.
“Eliminating the terminal hour looks like an extra freedom, but it will be outweighed by the introduction of capacity numbers and the rising cost of fees.
“Numbers will go down, which will reduce profit potential, which means that the properties will immediately become overrented,” he said.
As well as allowing local residents to have more of a say in granting licences, the Bill will shift licensing powers from magistrates to local authorities.
Andrew Watt, head of licensed property at Colliers CRE, said this would “introduce bureaucracy and delays”.
Critics say the changes are unlikely to produce the staggered drinking times desired by the government. Watson said: “No operator is going to let his competitor get the last half hour of drinking. They will all stay open as long as it makes economic sense, unless the councils impose closing hours.”
EGi News 25/11/02
