ONE of Southampton's leading commercial property agents is warning operators of pubs and clubs that they could be hit in the pocket under 24/7 opening hours from November.

Applications are being put to licensing authorities from now until August 6 to enable license holders to open all-hours.

But one of Austin Adams' directors, Jon Diaper, has struck a note of caution.

He said: "Those currently considering the wisdom of extending their trading hours need to think carefully about the costs and benefits of doing so."

Jon added: "One of the hitherto unforeseen consequences of these changes is their likely impact upon both rent review settlements and resultant capital values.

"This is particularly true of operators currently subject to turnover rent arrangements.

"Many of the nightlife hotspots across the region will see premises staying open and benefiting from increased levels of turnover.

"Inevitably, some operators will choose not to extend their opening hours and incur the additional costs of staying open and trading.

"Where these businesses are located within established night-time hubs, the consequences may be unfortunate, as these venues could be hit by a double whammy.

"Not only would turnover potentially lag that of competing premises nearby, rents at periodic review could increase to reflect the potential profitability of the location, rather than the actual (and lower) levels of profitability achieved by the business.

"The implications resulting from the change to licensing legislation are still emerging, and when considering whether to stay open and trade for longer hours, operators need to look at their locations on a site-by-site basis carefully weighing up the pros and cons of their decision.

"Precipitous action, and the failure to understand the implications of these changes will inevitably lead to some business failures, but I remain optimistic that there will be benefits to businesses overall."