A loophole in pub sales can stop buildings from ever being used as pubs again, Rochdale Town Hall has been told. The issue came to light after The Wheatsheaf pub in Littleborough closed a few months ago, sparking community outcry.
There is strong local interest in reopening the pub as a community asset, but residents fear a small loophole prevents this. When breweries or large companies sell a pub building, they can include a covenant that stops it being re-used as a pub. This is inserted to prevent competitors taking the pub on the cheap, the latest town hall meeting was told.
Councillor brings motion to council
Coun Richard Jackson, Littleborough Lakeside councillor, brought a motion to Rochdale council to address the issue. He told the chamber on October 15: “The reality is that around 50 per cent of pubs are owned by breweries or large pub companies. They have a history of damaging the industry as a whole. This often leads to tenant attrition.
“We are acutely aware of pubs being closed down after numerous tenants have left the building. The point of this motion is to address the churn. We have seen this at the former Royal Oak pub. This was sold with an anti-competition covenant.”
Royal Oak example
The former Royal Oak pub closed in 2015 and was sold off, becoming a vape shop that was later shut down by Trading Standards. Coun Jackson called on the council to write to the government to block restrictive covenants on pub sales. He said this loophole means most pubs get turned into shops or houses in multiple occupation (HMOs).
His ward colleague Coun Tom Besford shared annoyance that the future use of a community building can be dictated by the business interests of a brewery or company. The pair also credited Rochdale MP Paul Waugh for his continued work on the issue and raising it in Parliament.
MP responds after motion passed
Speaking after the motion was passed in Rochdale Town Hall, Mr Waugh said: “This Government has already done the heavy lifting on pubs. Since August, the planning rules make it harder to turn a viable pub into flats or a shop, and the new Community Right to Buy gives people the power to buy their local. But one back door is still wide open.
“A pub company can sell up and write into the deeds that the building can never sell another pint, and that ban binds every owner after them. Littleborough lost the Royal Oak that way, and I’m determined that we’re not going to lose the Wheatsheaf too. The minister has asked for evidence, and with Rochdale council now behind us, I’ll be putting our town’s case to him directly.”
It is a tough time for the pub industry nationally, with approximately one pub a day closing by the end of 2026, according to the latest figures from the British Beer and Pub Association (BBPA). The trade body estimates that around 360 pubs will permanently shut their doors by the end of the year.
