Public houses and house prices in Great Britain: a panel analysis

Ignazio Cabras,Franziska Sohns,Jesus Canduela,Steve Toms

doi:10.1080/09654313.2020.1726294

Abstract

ABSTRACT This paper examines the relationship between public houses or ‘pubs’ and house prices in Great Britain. Using a unique dataset, comprising statistical indicators for 373 local authorities registered between 2005 and 2015, the authors investigate this relationship from a panel data perspective. The analysis identifies a strong positive association between an increase in the number of pubs and house prices, showing different patterns with regard to pubs located in urban, suburban and rural areas. Results offer an original contribution to the literature related to the economic value of pubs as important third places in Great Britain, providing the basis for potential policy choices aimed at supporting community investment.

Highlights

In the United Kingdom (UK hereafter), public houses or ‘pubs’ provide important places for social aggregation, offering physical settings for many types of communal activities (Maye et al, 2005; Mount & Cabras, 2016)
Several recent studies confirm the positive impact of pubs as third places on local communities (Bowler & Everitt, 1999; Cabras & Mount, 2017; Maye et al, 2005; Mount & Cabras, 2016), and this impact on community cohesion appears to be greater than other third place including community halls, village shops, post offices and libraries (Cabras & Lau, 2019)
The purpose of the study presented in this paper is to explore, examine and evaluate the possible relationships between pubs and house prices within LAs

Summary

Introduction

In the United Kingdom (UK hereafter), public houses or ‘pubs’ provide important places for social aggregation, offering physical settings for many types of communal activities (Maye et al, 2005; Mount & Cabras, 2016). Any decline in the number of pubs, represents a potential threat to the cohesion and attractiveness of a community. Notwithstanding the importance of the issue and the significance of the long run decline, there is an absence of large sample research evidence into the consequences of pub closures. One reason is that significant attention, understandably, has concentrated on the causes of these closures, notably regulation, restructuring and competition from supermarkets (Higgins et al, 2016; Preece, 2016).

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Conclusion