As we cross the midpoint of 2025, the UK leisure sector presents a mixed picture. While traditional venues like pubs continue to face mounting pressures, other areas of leisure are thriving — driven by experience-focused demand, hybrid lifestyles, and shifting consumer preferences. Here’s what the commercial property outlook reveals so far.

Last Orders for the Local? Pubs Under Pressure

According to the British Beer and Pub Association, Britain is on course to lose one pub a day in 2025, reflecting a sector still under strain from rising operational costs, staffing challenges, and long-term shifts in drinking culture.

The warning follows a continued trend of closures, particularly in rural and suburban areas, as younger demographics favour experiences over alcohol-focused outings, and older venues struggle to meet modern energy and access standards.

For commercial property, this means:

• Former pub sites being repositioned as residential or alternative leisure use.(which requires planning permission for a change of use from a pub (sui generis) to residential (C3) or other classes.
• Some prime city-centre pubs with heritage value or strong food offers remain in demand but are increasingly owned by larger operators or turned into mixed-use destinations.
• Leasehold restructuring and rising insurance/premises costs are limiting independent pub survival rates.

 

Bright Spots: Where the Leisure Sector is Performing Well

Leisure formats that are booming appear to be those catering to health, wellbeing, and social experiences. Here are some of the strongest performers:

Gyms, Studios & Wellness Spaces

• Budget gyms like PureGym continue to expand, targeting retail park and urban fringe locations.
• Boutique offerings such as yoga, cold water therapy, breathwork (using different breathing exercises to improve well-being) are gaining ground in upmarket suburbs and regenerated mixed-use schemes.

 

Competitive Socialising

• There has been a rise of venues combining drinks with activities — such as Flight Club (social darts), Boom Battle Bar, and Puttshack. These concepts typically demand high-spec fit-outs, and landlords are increasingly willing to share costs to secure long-term occupiers.

 

Leisure-Led Retail Parks

• Regional retail parks that pair cinemas, food outlets, and activity zones are remaining resilient.

 

Adventure & Active Leisure

• Trampoline parks like AirHop and Flip Out, climbing centres, and indoor adventure venues are repurposing former retail units.

 

Hybrid Wellness Retreats

• Rural properties and former inns being converted into cowork-wellness venues is a growing trend with remote workers and freelancers especially. This trend particularly supports activity in coastal and countryside markets.
• Curated experiences offered by boutique cinemas and live performance venues are gaining favour in regional centres.
• Mixed-use properties with space for small venues or event hosting are benefiting from a renewed focus on local culture.

 

Looking Ahead

While some parts of the leisure sector appear to be struggling, tenant demand is shifting rather than disappearing. The key for commercial landlords and investors is to pivot toward formats that offer unique, health-focused, or social experiences — and to support operators with flexible lease terms and collaborative fit-out support.

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