On the face of it, now may not be the best time to buy a pub. The smoking ban, the recession, rising costs and competition from cheap supermarket beer have combined to give the sector a massive hangover; pubs are closing at the rate of 50 a week.

But the sharp decline in trading has had an inevitable impact on pub values, putting cash buyers in a strong position. Christie + Co, the licensed property agent, says that values fell by about 12 per cent last year and have continued to decline in 2009, albeit at a slower rate. The sharpest falls have occurred at the bottom end of the market, where “wet-led” pubs — those with little or no scope for serving food — are looking increasingly unviable.

The price fall has not been nearly as marked in the quality freehold market, where competition for the best-located pubs remains strong and prices fairly robust.

For those who do not have half a million pounds in their back pocket, the alternative way to run their own local is to consider taking on a leasehold pub, be it a short-term tenancy or a longer-term lease. While a tenancy will not normally involve any upfront payment, an assignable lease — one that can be bought and sold — will involve a purchase price ranging from a few thousand pounds to a couple of hundred thousand, depending on the size, quality and location.

Most tenancies and leases tie you in to buying your beer at often above-market prices from the pub company or brewer that owns the freehold, though a free-of-tie pub will normally have a higher rent. What’s more, the threat of regulatory action against the tied business model is starting to create greater transparency and fairness in the way that pub companies deal with their tenants.

As the actress Loui Batley and her partner, Simon Lawson, have realised, running a pub is unlikely to make them a fortune. But, as the example of the film-maker Guy Ritchie — proud owner of the Punch Bowl in Mayfair (pictured) — shows, the allure of running one’s own pub remains powerful and the queue of would-be publicans shows no sign of diminishing.

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