Bold, bohemian, beautiful and brash all at once, Brighton has it all (except sand). For us, Brighton’s appeal is relentless for different reasons.
Its profile as a prime location within our diversified lending strategy hasn’t been stronger. In fact, we identify it as one of six key UK towns and cities.
Every financial indicator supports this. The residential population is youthful and rising, rental demand is increasing, as are monthly rents and yield. And this will continue for the foreseeable future.
Grab a stick of rock, there’s a lot to chew on.
Who lives there?
Brighton’s resident population exceeds 270,000 and has a considerably higher youthful profile than the rest of the UK, with almost 43% aged 25 - 44yrs1.
This is only heading in one direction as young professionals continue to move from London, attracted by cheaper rents.
A youthful demographic
At the same time, there’s a sizeable student population, with 34,678 registered students in 20142. Further to this, some reports claim both universities aim to attract another 12,000 students by 20203.
All these factors place pressure on Brighton’s existing private rental housing stock of 35,959 households, which equates to 29.6% of all homes1.
Increasing demand, rising rents
In addition rents have increased by 10% since 20124. While another indicator of the strength of the rental market is the increase in private landlords.
People aged 25 – 44: 116,780
Current Student Population: 34,678
% Housing Stock Let: 29.6%
Average Monthly Rent: £1,248
Average House Price: £278,594
Average Rental Yield: 6.16%
Source: The Guardian, 27 May, 2014, Brighton & Hove Housing Report 2015 Q2 Apr-Jun, 2011 ONS Census.
Buy-to-Let Market Overview
According to analysis undertaken by HSBC in 2014, based on statistics from the Land Registry and home.co.uk, average yield has grown from 5.58% to 6.16%5.
“Landlords are reaping the benefit as young professionals say goodbye to capital living in favour of more affordable commuter towns,” said Peter Dockar, Head of Mortgages at HSBC.
“House prices in these locations – while still out of reach of many first-time buyers – are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns.” 5
Thinking outside the capital
It’s the combination of low rents, combined and Brighton’s vibrant and cosmopolitan atmosphere.
As a commuter town it offers 8 stations and the journey to London takes under an hour.
It comes alive in summer and doesn’t sleep in winter – the iconic Pavilion, historic Lanes and Regency terraces draw in over 8 million tourists every year6.
As a place to live it offers miles and miles of seafront, a rich culture and nightlife, with more restaurants per head than anywhere else in the UK, outside of London.
The bottom line
With a growing population, increasing rental demand, house prices that are attracting more landlord purchases and consistent rental turns, Brighton’s appeal to the investor sees no sign of abating.
1 2011 ONS Census
2 Report of Statistics, Brighton & Hove City Council, 2014
3 Brighton HMO Action Group
5 The Guardian, 27 May, 2014