From The Atlantic Cities blog:
Over the past decade, 1,300 London pubs have emptied their cellars and wiped down their tables for the last time. It's not just obscure, unloved bars that are dying. This winter, two well-known historic pubs, both open for over a century apiece, will likely be turned into private housing. One is the Old White Bear, a red-brick building hidden away in village-like Hampstead, a former spa town swallowed up by Victorian London. The other, just down the hill, is The Star, an inn dating back to the 1820s with a wood-lined interior (featured in this 1980s pop video) that makes drinking there feel rather like sitting inside a whiskey-soaked violin.
Under the British system, the pub "landlord" (in British pub terminology, this actually means a manager that rents a premises, rather than an owner) must buy their booze from the company they rent the pub from. With no competition, the prices they pay are generally inflated, meaning that even if landlords trim their profit margins, beer still comes out pricier than it otherwise needs to be. While pub companies turn a profit, individual landlords are pushed to the wall. The pub companies then sell off under-performing premises, even though pubs wouldn't actually be unsustainable if landlords got a better deal.
There's a silver lining, and not just from pubs like Southampton Arms: The City of London has taken steps to preserve some landmark pubs.