MOVEMENT in the south's licensing market is providing opportunities for entrepreneurs and niche operators looking to make their mark in the pub trade.

Licensed property expert Kevin Marsh, an associate director with FPDSavills in Southampton, says the strong market has been fuelled by changes in the city centre circuits, rationalisation by many of the branded operators and the wide availability of funding.

Mr Marsh said: "The strongest market is currently investors, either individuals or pub companies such as Enterprise Inns, who want to run a pub under management or more often let to a tenant to receive a rental income.

"In recent years the market has undergone massive change as breweries have sold out to pub operators and themed chains have spread throughout the country. This is particularly prevalent in town and city centres and it is quite likely that your local pub has been sold at least twice in the last three years.''

But this phase of demand from the branded High Street operators is now greatly reduced from the high levels of three to four years ago and some of the less successful outlets are proving attractive to smaller operators who are snapping up pubs as they become available.

Mr Marsh added: "Larger chains spend considerable sums on fitting-out costs but if an outlet doesn't work they cannot recoup these costs and incoming buyers are taking advantage of this, buying fully fitted pubs at a fraction of the retail cost."

The new breed of pub entrepreneurs are also ensuring effective management to maximise their returns and pitching their pubs carefully to create successful businesses.

"The market is most successful in the premium and discounted sectors,'' said Mr Marsh.

"Those that can offer cheap drinks successfully target one market but operators who choose not to compete on price are finding success in creating premier label outlets where ambience is the key.

"The operators finding the market toughest are those who find themselves somewhere in the middle.''

As for the future, Mr Marsh said that demand will continue from emerging branded operators and local entrepreneurs for generally smaller units often tailored to local demand. Rents are likely to rise for some properties while high street rents for the larger units are likely to stabilise.