Yorkshire's pubs and hotels prove to be a big hit with entrepreneurs

Viewings on businesses carried out by Christie & Co's Leeds office rose from 420 in the second half of 2009 to more than 570 in the first six months of 2010.

David Lee, a director at Christie & Co's Leeds Office, which specialises in the hotel, pub, restaurant, care and retail sectors, said: "Freehold businesses have continued to generate significant interest, with an increasing number of deals completing since the turn of the year, to a wide range of buyers.

"With the first half of 2010 under our belts it is encouraging to reflect on an increasing flow of completed deals, with a number expected to complete in the next month.

"We are noticing an increasing number of clients turning from potential buyers into actual buyers."

The lack of supply has also led to multiple bids for some properties, which were less common during the recession.

He added: "With values apparently having stabilised, it looks like prospective buyers are a bit more confident that they are likely to get value for their money. With interest rates low and stable, affordability is also starting to drive demand for quality businesses."

Mr Lee said that a steady flow of transactions would help to "warm up" the market.

Recent deals have included the sale of the freehold at the Weston Hotel in Scarborough to first time-buyers Tom and Pat Hendry, from Cheshire, for a substantial seven figure sum.

Christie & Co also recently sold the freehold of O'Donoghue's pub in Wakefield, to the Great Heck Brewing company, for an undisclosed sum, off an asking price of 175,000.

Research conducted by Christie & Co also indicates that local buyers have dominated the acquisitions market in the UK's hotel, pub, restaurant, care and retail sectors over the last year.

About 70 per cent of all businesses acquired through Christie & Co over the last year have been bought by people who live within a 20 mile radius.

Simon Hughes, the company's UK managing director, said: "The difficult residential sector has focused many more applicants on buying a business close to where they are already living."