Market Insight: Pubs & Restaurants in London

Leasehold dominance continues 

The hospitality property market in London remains largely dominated by leasehold transactions, as many landlords look to convert their property into an investment, while buyers are showing caution around paying high premiums for freehold or new leasehold properties. For many operators, lease assignments now represent one of the most accessible routes into high footfall locations, across both the City and Greater London. 

Demand remains particularly strong for wet-led leasehold pubs, where stock availability is limited, as well as for leasehold restaurants and cafés situated in areas with consistent daily traffic. Appropriately priced freehold sites still attract attention, however buyers are increasingly selective. 

Cost pressures bring new stock to market 

At the same time, a noticeable trend has emerged with food-led pubs and restaurants coming to the market as prolonged cost inflation continues to squeeze profitability. 

Although cost pressures continue to create hurdles, including staffing constraints amplified by rising National Insurance and Minimum Wage requirements, these dynamics have also brought a new wave of high-quality stock to market. London remains distinct from many other UK regions due to the volume of operators actively seeking leasehold opportunities, favouring lower-cost routes into trading in the capital’s busiest districts without the financial commitment of freehold ownership. 

Buyer appetite across London continues to be strong, with first-time operators and small multiple operators proving especially active, as they search for lower-premium sites with strong trading potential. Despite the challenges, buyers remain confident, prioritising opportunities that offer sustainable trading prospects and realistic entry costs. 

Strong demand is reflected through recent transactions 

We have advised on several transactions in recent months which illustrate this strength of demand for well-located, good-quality hospitality sites: 

• The Regency Café, an iconic art deco venue which featured in films such as Layer Cake and Pride, generated significant interest and sold quickly following two busy open days.  
• The Arbitrager, a small wet-led pub in the City, highlighted strong appetite for traditional drinking venues, where supply remains tight.  
• Blue Fig, a compact restaurant close to Balham Underground station, sold above its asking price within just three months, demonstrating the competitive landscape for small but strategically positioned hospitality businesses. 

Collectively, these examples highlight a market shaped by high demand, cautious yet motivated buyers, and meaningful opportunities for operators who are ready to act. 

To find out more about the pub and restaurant market in London, or for a confidential chat about your business options, contact David Wilson at David.Wilson@christie.com or +44 7764 241 364.