Kirsty McLuckie: the future of rural pubs

And with the numbers of country pubs across Scotland which close for good each week reaching high levels over the past decade, a fresh approach is what is often needed.

The hostelry in my home village closed eight years ago causing a knock-on effect in terms of jobs, amenities and a decline in visitor numbers.

It is a story that has been repeated the length and breadth of rural Scotland. Country pubs have been hit hard by legislative changes such as the tightening of drink-driving laws, property tax rises and the cost of holding a licence.

But given the right circumstances, and owners willing to embrace innovation and redevelop buildings to suit a more modern purpose, country pubs can be reinvigorated to take their place in village life.

Commercial property specialist Christie & Co says that the Scottish pub market is resilient despite setbacks. Its figures over the last year have been witness to a growing appetite for licensed trade premises across the nation.

Ken Sims, director of Christie & Co, says the market is changing with traditional Scottish watering holes having to mimic the English model of a village pub and offer food and accommodation to thrive.

Pubs which consist merely of a small bar are likely to struggle, but a building which can be redeveloped to allow a wider range of amenities has a greater chance of success.

“The smaller back street bars are unlikely to see a resurgence, but village pubs often have plenty of space which can offer additional services,” he says.

“As the tradition of the ‘after work pint’ has declined because of the drink-driving laws, the most successful pubs are concentrating their efforts on offering high-quality food.

“Pubs with a restaurant and accommodation are seen as a lifestyle purchase which will allow an owner to make a good return, employ the family and fund a decent standard of living, even if there isn’t a huge profit.”

He says that circumstances such as the growing trend for staycations and the exchange rate attracting foreign visitors to the UK all point to opportunities for rural pubs.

Those looking to purchase a business should concentrate on site-specific services and tailor their offerings to walkers and mountaineers, older tourists or the family market, whichever is relevant to their area.

Banks are generally keen to fund well-located properties with a strong trading pattern but lending levels tend to reduce when looking at more rural businesses.

In these properties, the bricks and mortar value becomes the benchmark for loan-to-value levels.

But private sales aren’t the only driver in the rural licensed trade market. Support from government and other organisations can be accessed by community groups looking to take on ownership of their local pub.

This route can help groups deliver significant social benefits to the wider community, targeting exactly what is needed, for instance the provision of employment, workplace training and amenities such as a shop, post office, library, internet café, cash point or prescription services.

It is something that we are already working towards in my village. Having drawn up plans on how to achieve it, the next few months will see the community apply for planning and funding for a community hub with a licensed restaurant and bar, plus sports facilities.

If only we had a place to meet for discussions.

Kirsty McLuckie is property editor at The Scotsman.

This article appears in the SUMMER 2017 edition of Vision Scotland. An online version is available here. Further information about Vision Scotland here.