The number of pubs in England and Wales dipped below 39,000 for the first time after hundreds of locals shut their doors for good this year, according to new figures.

Official Government statistics have revealed that 412 pubs were demolished or converted for other uses over the year to December.

The data, which was analysed by commercial real estate specialists at Altus Group, showed that the overall number of pubs in England and Wales, including those vacant and being offered to let, fell to 38,989.

More 34 pubs a month called last orders for the final time over the year, as the rate of pubs disappearing from local communities accelerated.

It was the sharpest fall in pub numbers since 2021, when the sector was hit hard by pandemic restrictions and surging energy prices.

UK pub numbers have now plunged by more than 2,000 since the start of 2020.

The latest figures come amid a backdrop of rising costs and cautious spending among consumers who have witnessed higher mortgages and rents.

In April next year, a number of policies from the autumn Budget will come into force which are also due to drive a sharp jump in costs for many pub operators.

Altus Group’s Alex Probyn said: “Many publicans that I speak to are extremely worried that this could be their last Christmas given the combination of hiking the amount employers will have to pay in National Insurance, increases to the minimum wage and the business rates discount being slashed from 75% to 40% in 2025.

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

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “Brewers and pubs pour billions into the economy and support more than a million jobs, so we know that closures can have a disastrous impact for both the nation’s coffers and the job market.

“For the sector to remain a stalwart of the economy and continue to be the beating heart of our communities, the Government must swiftly deliver permanent and meaningful business rate reforms.

“We stand ready to help the Government bring in sorely-needed change that will break down the barriers that stop our sector from contributing even more to the economy and employing more people than ever before.”

The fresh data also showed that London lost the greatest number of pubs in 2024, falling by 55 to 3,470 at the end of the year.

Meanwhile, pub numbers dropped by 53 to 3,904 in the West Midlands.