The volume of pub sales is down 20-30 per cent on last year, reflecting "a certain nervousness out there over the true values of pubs that come on the market," according to Bill Morrissey, director of Morrissey's.

Realism and caution are two words being bandied about by commercial agents to describe the current market mood. The panic buying of previous years seems to have come to an end as has the era of the spectacular pub price.

Last year, although the market was showing signs of softening, there was a slew of high profile sales including that of the Baggot Inn for a much talked about £5.5 million (6.9 million).

While the initial months of this year saw a number of £3 million-plus (3.8m-plus) transactions - such as the Norseman in Temple Bar, Dublin 2, for £3.8 million (4.8m), The Bleeding Horse on Upper Camden Street, Dublin 2, for £4.5 million (5.7m) and the Bird Flanagan in Rialto, Dublin 8, for £3 million (3.8m) - the period from April to July has been relatively quiet.

Sales in recent months include the Garristown Inn in Garristown, Co Dublin at auction for £735,000 (933,450) last month. O'Brien's, in Ranelagh, Dublin 6, fetched £2 million (2.5m) when it was sold by private treaty - it had been withdrawn from auction at the end of last year with a guide of £2.5 million (3.1m).

"There isn't a lot of quality product on the market at the moment," says Morrissey, "and some expectations are out of kilter with what the market is prepared to pay.

"The reasons people sell up are usually retirement, a partnership split, because they are trading up or because the owner dies. If there is any other reason the chances are it is not going to sell."

The slowdown can be partly attributed to a "period of adjustment" in the pub trade to aspects of the Intoxicating Liquor Act 2000.

"Extended hours means additional staff and not necessarily the additional turnover. The Government price freeze and Mandate staff pay deal have also pushed up costs."

Those pubs faring better under the new legislation tend to be city or town centres where there is a large, young clientele. "In the suburbs, people may come out later and drink the same amount but it costs more to stay open."

The single State-wide licence area brought in under the Act made it possible to transfer licences from rural areas and towns to a major population centre. The value of licences now stands at approximately £80,000-£120,000 (101,600 -152,400).

Prior to the legislation, Dublin licences cost between £200,000 to £700,000 (254,000-889,000), depending on location while rural licences were valued at £70,000 to £80,000 (88,900-101,600).

He knows of a licence currently available for £50,000 (63,500) which has, as yet, had no takers. "We are looking at deregulation of the off-trade, there are very few new hotels - 10-15 a year at most - and no significant increase in the number of pubs being allowed by the planners."

Bill Morrissey believes that many of the spectacular Dublin licence prices quoted at the height of the boom were misleading.

He referred to one case where a licence was transferred two years ago from an old inner city pub to a new pub/nightclub for £650,000 (825,500). "That money didn't reflect the licence but it was paid as goodwill for the redundant fixtures, and fittings."

There remains uncertainty over whether the Government intends to implement further deregulation measures, says John Hughes of Richard Ellis Ellis Gunne.

"The Government needs to clear the air considering last year's new legislation, which effectively brought about deregulation. Some people are holding off buying and adopting a wait-and-see approach. until the matter is clarified."

He doesn't agree that prices have dropped significantly, citing an example of the Barn Lodge outside Clonmel, Co Tipperary, that sold over a year ago for £675,000 (857,250) and again more recently for £700,000 (889,000). McGlynns on Thomas Street, Dublin 8, sold in April 1999 for £600,000 (762,000) and again in March for over £800,000 (1.02 million).

John P Younge says the number of sales is "almost par for par with last year" but adds there is a more cautious atmosphere "which is no bad thing", and the banks are taking a more conservative approach.