Here's Why You're Paying £8 a pint.

Let me, as a manager of a pub explain why.

The cost of the pint is roughly £2 (depending on if you're a chain or indie pub) minus operational costs.

The real reason is so simple. Its commercial rent costs. Here's why:

A home mortgage is based on a purchase price over a set number of years. A commercial mortgage is based on a Loan to Value (LTV) principal. If rent is x, the property is worth y, and the repayments are z.

Commercial landlords in London (and other places) cannot lower rent, because it affects the value of the property. And if they do lower rent, and their equity in the property is less than the new value of the loan, then the lender issues a margin call on the loan to protect themsleves. And because for the last 15 years, green line only go up, landlords are all over leveraged.

That's why you see so many premises for rent on the high street, so many pubs closing etc. There is less demand, and the supply cannot adjust to meet it because of LTV loans.

Thats why there is such a big push to stop Work from home, commercial buildings.

Anyway, just want you to know its not the pubs who want to sell pints for £8...