When you think of the top investment cities in the UK, the first ones that spring to mind are the big hitters: London, Manchester, Leeds, Birmingham… you get the picture. However, while these cities have a lot of benefits and appeal to property investors and renters alike, there are plenty of fantastic opportunities up and down the country in a lot of places you would least expect.
One such opportunity is the sleepy coastal city of Brighton and Hove (commonly referred to as “Brighton”). It was a popular holiday spot during the Victorian era – a trend that continues today. There are traces of history in the city wherever you look, from the Regency architecture to the famous Brighton Pier. The Royal Pavilion aids Brighton’s social and cultural scene, showcasing incredible shows and concerts every single week. The city sees an average of 9.5 million visitors each year and has a steadily growing permanent population.
So, why is Brighton and Hove such a magnet for investment activity? Here’s why:
Why Brighton Is A Property Investment Hotspot
Capital Appreciation
The general property trend in the UK has been strong capital appreciation and house price growth in the last few decades, and Brighton is no exception to this rule. According to Rightmove, over the last year, Brighton’s average house price stood at £495,880. Most of the sales were flats, which went for an average of £351,445. Terraced properties fetched £582,802 and semi-detached properties sold for £578,947. This reflects a 4% decrease from the previous year and a 6% increase from the £469,800 peak in 2021.
Rental Prices and Yields
Currently, the rental market in the UK is strong with the average UK private rent increasing by 9% from February 2023 to February 2024. The average price of a rental property in Brighton and Hove will set renters back by £1,723 per month – according to the Office for National Statistics. This is much higher than the national average, which currently is £1,276 in England. Private rental prices rose to an average of £1,723 in March 2024, representing an annual increase of 9.0% from £1581 in the same month last year. This percentage is noticeably higher than the average rental increases in the South East in the same period, which was 8.2%. These high rental prices propose an attractive opportunity for investors.
Population
Just like the rest of the UK, Brighton has seen a significant uptick in population in recent years. When it comes to the numbers, the population increased from 273,400 in 2011 to 277,200 in 2021 when the last census was recorded, representing a modest yet stable growth of 1.4%.
When it comes to age, 15% of the population is under the age of 16. Comparatively, this is 19% in the South East and 19% across all of England. 72% of Brighton is made up of people aged 16 to 66, compared with 64% in the South East and 65% in all of England. A further 10% are aged 67 to 84 years, whereas the South East stands at 16% and 15% for the rest of the country.
You’ll first notice – 72% of the population is of working age, hinting at a strong workforce. In 2023, the council recorded over 163,000 people of working age who were employed. The top occupations of Brighton residents include professional (22.7%), associate professional and technical (16.7%), managers, directors and senior officials (11.7%), administrative and secretarial (9.6%), and business and public service associate professionals (8.1%).
Economy
Brighton and Hove has a growing economy, with lots of businesses making the area their home in search of cheaper operational costs outside of London. According to the Brighton City Council, the city’s economy is currently worth £21bn and supports 140,000 jobs and 16,000 businesses to date. Since 2011, 14,300 new jobs have been created and 2,700 more businesses in the city compared to back in 2012.
It’s clear that there is a strong population of a highly educated and high-earning workforce. Brighton has always been popular with working professionals moving away from London in search of cheaper rent and living costs, and this still rings true today.
Student Population
It wouldn’t be a city without a student population. Brighton is home to the University of Brighton and the University of Sussex – it boasts a combined student population of 40,000, both local and international. Students are attracted to the area for affordability compared to other cities in the UK, namely London.
Short Term Lettings Opportunities
The city of Brighton was a hugely popular seaside tourist town in the Victorian era and it still brings in millions of visitors each year. The reason? Quintessential British seaside fun. Visitors come to take in the Regency architecture, walk the historic Brighton Pier, check out the museums, and visit the Royal Pavilion – a seaside palace dating back to the early 1800s. The area is also an archaeological hotspot, with evidence of settlements dating back to the Bronze Age, Roman, and Anglo-Saxon periods.
As such, Brighton is a fantastic destination for the short-term lettings investors. There is a strong demand for short-term rentals via Airbnb and other short-term rental sites. The majority of Brighton and Hove’s economy is based on tourism, with this sector contributing £885.9 million to the city’s economy and attracting 9.5 million visitors a year. The town is frequently featured in the top places to visit in the UK and is in the top 10 of the UK’s most visited towns and cities in the UK and the 11th most popular destination for international visitors.
Summary
The Brighton buy-to-let property market is one of untold potential for the property investment industry. Here at North Property Group, we’re here to help you get the most out of your property investments in Brighton and beyond. We are a highly-esteemed property investment agency that has branches across London, Leeds, and Manchester, offering an end-to-end investment and lettings service.
From tenancies to payments to documents, we offer investors peace of mind and a hands-off approach. But don’t let us just do all the talking. We currently have over 1,500 5-star reviews on Trustpilot – and growing. Book a free consultation with us today to start your Brighton and Hove investment journey and tap into the UK’s best off-plan opportunities.