Famed for its youthful outlook and eccentric attitude, Brighton is one of Britain’s most popular cities.
It’s also one of Britain’s’ newest cities only having been granted city status in 2000. Really a twin city known as Brighton and Hove, Brighton has three main avenues recommended for investors. Firstly, to target the young professional market with studio and one or two bedroom flats. Secondly, to target the student market with properties that would lend themselves to multiple occupancy. And finally, to go for one of the city’s many older properties that are ripe for renovation. By opting for one of these choices, Brighton, despite recent house price rises, still makes for an attractive prospect for the discerning buy-to-let investor.
According to a recent report, Brighton is making the most of offering a real alternative to crazy rents in London by reporting a healthy 6.16% yield for buy-to-let investors – one that has grown 12% in recent years.
Brighton is a small city with plenty to offer. Situated in prime position just an hour away from London and right on the coast, Brighton is becoming increasingly popular with young professionals who have worked out that living in Brighton and commuting to London, makes an awful lot of financial sense. This means there is a growing rental market that complements solid rental yields, and with up to 28% of the city’s housing stock in the rental sector this is only set to improve.
With its coastal location, stunning surrounding countryside, and access to London, Portsmouth and Southampton, it’s easy to see why Brighton is such a popular and thriving place to live.
Chosen by the Prince Regent as his weekend destination of choice, Brighton was also considered to have therapeutic benefits in the 18th Century too. Now known for its bohemian cultural outlook and as the gay capital of the UK, Brighton is open-minded and has seen Britain’s first Green MP in Caroline Lucas. Brighton is proud of its heritage too being home to Europe’s oldest working cinema and the stunning Brighton Pavilion. For quirky shopping, and gruesome tales of murder and ghostliness, head to North Lain and the surrounding Lanes. Brighton is also a good bet for its arts festival – the second largest outside Edinburgh. Finally, the city is a massive hit for fans of all things mod thanks to the film, Quadrophenia.
With all this in mind, exactly where should you be looking to invest?
Popular with young professionals who are driving up rental prices, the centre of Hove undoubtedly benefits from its transport links to London. Slightly less of a heated market than central Brighton, Hove is still on a direct line to London and offers tenants and investors alike, a little more bang for the buck. Investing in a one or two bed flat in this area will pay dividends when it comes to rising demand for this type of property.
Hanover is a popular student area and is situated high in Brighton’s hills. Famed for it’s maze-like streets, Hanover retains its popularity with the student sector thanks to its position between Brighton centre and the university campus. With just a twenty-minute walk to the beachfront, Hanover makes a great spot to invest in thanks to its sense of community and to its large student population.
If you are looking to buy a rental property at the lower end of the market, the area of Mouslecoomb could be the place for you. Depending on whom you ask, there are varying opinions about this area – not all of them positive. Nevertheless, it remains popular with families who are more likely to be looking to rent – often the smart choice for buy-to-let investors.
Brighton is a great bet for buy-to-let investment. Its location in spitting distance from London and its growing renting population mean you can’t go wrong if you’re looking to invest in an area with growing yields. Whether you’re looking to rent to families, young professionals, or students, Brighton and Hove have plenty to offer all types of investors.