Affectionately known as “London-by-the-sea,” Brighton is a vibrant city that’s shaping up to be a trendy alternative to the hustle and bustle of London. Despite the fact that residents are relocating to the city in droves, it continues to be a popular destination, especially during the summer. Yet many investors still question whether or not buying property in Brighton is worth the high cost.
Brighton’s Property Market
The popularity of Brighton is evident in the city’s property market. Properties are often snapped up as quickly as they’re listed. The high price tag attached to these properties is also an indication that people are willing to pay a pretty penny to claim their own space in this eclectic town.
If you’re looking for an investment property or plan on buying property in Brighton to live, be prepared to pay a high price – especially for properties in the centre of town. If you like a challenge, there are some renovation opportunities. Quite a few properties are outdated or deteriorating. If you have the skills, patience and budget, you can see a nice return on your investment by purchasing a property that needs renovating.
Buying property in Brighton can be a smart investment if you’re in it for the long haul. In other words, you will need to hold onto your property for at least five to ten years in order to see the highest return.
While five to ten years may sound like a very long time to hold onto an investment, this is not an uncommon length of time for real estate investments. Property does not accumulate in value as quickly as other types of investments, so you need to be prepared to make a long-term investment before buying property in Brighton.
A Thriving Rental Market
The rental market in Brighton is thriving, with more than 20% of homes designated HMO (Houses of Multiple Occupancy).
Brighton is a haven for professionals, as wages in the city are low and property prices are high. Studios and two bedroom flats are the most popular properties and will return a nice investment. On average, studios sell for £120,000 and studio rental prices start at £500.
It’s difficult to find a two bedroom flat for under £1100, and one bedrooms typically rent for £1000. As property prices continue to rise, there is a potential to see an even higher return.
Of course, it’s important not to forget that there is never a shortage of students looking for accommodation in Brighton. If you’re interested in letting to students, the constant turnover each year will nearly ensure that your property is never empty for a long period of time. Rental returns are consistently high to boot.
A Buoyant Market
While there’s certainly the potential of seeing a nice return by investing in Brighton properties, the buoyant market is highly competitive. With such stiff competition between landlords in the area, you must act fast when properties are put up for sale.
In addition to competition, there are also concerns with HMO rules. The new scheme requires that the Council carry out an inspection of your property to ensure that it meets the license standards. While most of the properties are up to code, it’s important to understand the new HMO rules to avoid investing in a property that will require major renovations.
An Attractive Place to Live
At the end of the day, Brighton will always be a place where people want to live. There will always be people looking to escape city life, either on holiday or permanently. While the sea is what attracts most people to Brighton, the city itself boasts a vibrant and lively atmosphere with plenty of things to see and do in the area.
Brighton is home to:
The Brighton Pier
The Open Market
Plenty of museums
The Brighton Wheel
The Royal Pavilion
Theatre Royal Brighton
It’s easy to see why Brighton is such an attractive city and why property prices are consistently rising. If you have the budget and are able to act quickly, buying property in Brighton is well worth the cost. No matter whether you’re looking to live in the city, invest in property or let out to tenants, you are sure to see a good return providing you consider the property a long-term investment.