The number of pubs in England and Wales has fallen to an all-time low, with more than 400 closures recorded in 2024 alone, according to new research.

Recent data shows that the total number of pubs across the two nations now stands at just 38,989. This figure includes vacant or available-to-let locations, meaning the actual number in operation could be even lower. Over 412 pubs were either demolished or converted to other uses in the year ending December 2024.

Most closures occurred in the first half of the year, averaging around 50 per month, though the annual average came to 34 per month. This marks the most difficult year for the sector since 2021, when the Covid pandemic forced widespread shutdowns. Since 2020, more than 2,000 pubs have closed, driven in large part by rising costs and falling consumer demand amid high inflation.

Altus Group analysts also highlighted concerns over potential impacts from recent government policies.

Alex Probyn said:

"Many publicans I speak to are extremely worried this could be their last Christmas, due to increased employer national insurance contributions, higher minimum wages, and the planned reduction in the business rates discount from 75% to 40% in 2025."

Regionally, London saw the largest drop in pub numbers, losing 55 establishments to bring the total down to 3,470. The West Midlands followed closely, with 53 closures leaving 3,904 pubs in operation.

Probyn added:

"Many pubs simply will no longer be viable, making plots even more attractive for alternative investment."

The findings reflect wider concerns across the hospitality sector. Chains such as Fuller’s and Wetherspoons have warned of likely price increases in 2025.

British Beer and Pub Association chief executive Emma McClarkin said:

"Brewers and pubs contribute billions to the economy and support over a million jobs. Closures can therefore have a devastating effect on both the economy and employment."

A government spokesperson responded, noting ongoing efforts to support the sector:

"Thriving pubs are often at the heart of our communities. We are introducing a permanent lower business rate from 2026. More than half of all UK employers will see a reduction or no change in National Insurance next year, and we are taking further steps to support high streets by tackling anti-social behaviour and empty properties."