03/02/2026 09:40:00
Read our latest Survey of Pubs Prices report for national and regional insights from the past year, along with our outlook for 2026.
The UK pub sector remains a vital part of both the economy and local communities, contributing significantly through jobs, tourism, and as social hubs. Pubs are unique as a property type in the way they create emotional loyalty from the customer base with character and diversity impossible to replicate in other sectors. Post Covid the challenges have been substantial with rising operational costs, squeezed consumer spending and a significantly increased tax burden.
The UK pub sector in 2025 was characterised by subdued M&A activity amid persistent economic headwinds, high levels of uncertainty contributing to a selective and challenging debt market, softened consumer confidence, and elevated operating costs, leading to a quieter market compared to prior years.
The year began with reduced transactional activity, although it did include the largest transaction of the year - the sale of Loungers by Fortress. Due to increased economic and operational uncertainty the volumes of deals remained low throughout the year, featuring smaller to mid-sized transactions.
Rising costs are now feeding through into falling UK pub prices, with the sharpest declines at the lower end of the market. There is a widening gap between premium and value-led pubs, which continue to attract demand, and under-invested sites facing increasing pressure.
Looking forward in 2026 the hospitality sector continues to show resilience with pubs remaining at the forefront. Revenue growth and cost control will be essential to mitigating the increased wage costs and tax burden being imposed on the sector. The degree to which this can be accomplished may depend on wider economic conditions, prospects for growth and consumer confidence.