Beyond the Beach: Brighton’s Hidden Gems Buy-to-Let Investors

Brighton, affectionately known as “London by the Sea,” is a vibrant coastal city in the South of England, renowned for its rich history, cultural diversity, and thriving arts scene. This charming city is a magnet for tourists, students, and professionals alike, making it an attractive location for property investors, particularly those interested in the buy-to-let market. Here, we discuss what makes Brighton a compelling choice for buy-to-let investors in 2024.

Why invest in Brighton?

Brighton’s prime location, just an hour away from London by train, makes it a popular choice for commuters looking for a balance between city life and seaside relaxation. The city’s excellent transport links, including its proximity to Gatwick Airport, enhance its appeal to both local and international residents and visitors.

Economic growth and employment

Brighton has a dynamic economy, with strong sectors in digital, creative, and green technologies. The city is home to two universities – the University of Sussex and the University of Brighton – which are significant contributors to the local economy and provide a continuous influx of students in need of accommodation. 

The presence of these institutions not only fuels the demand for rental properties but also fosters innovation and job creation, drawing in professionals from various industries.

Cultural and lifestyle appeal

Known for its open-mindedness and inclusivity, Brighton is a cultural hotspot with a calendar packed full of festivals, including the famous Brighton Pride, Brighton Festival, and The Great Escape music festival. 

The city’s picturesque seafront, iconic Brighton Pier, and the historic Royal Pavilion add to its charm and desirability as a place to live and visit. These lifestyle factors contribute to a high demand for rental properties, as people are drawn to the city’s vibrant atmosphere and quality of life.

Regeneration projects

Brighton and Hove are on an exciting journey towards a greener, more sustainable future, with the city council diligently working on its urban regeneration plan for 2020-2023. At the heart of this initiative is the ambition to establish a circular economy, reducing waste and promoting the reuse of resources, alongside transitioning to a smarter, zero-carbon energy system to tackle climate change head-on. 

Also, the council is keen on rejuvenating the seafront infrastructure and paying close attention to enhancing the built environment, all of which are crucial steps toward creating a more sustainable city.

Recently, the city has embraced the next chapter of its urban renewal strategy, Part Two, which received the green light from the city council. This phase broadens the scope to include addressing critical housing needs and confronting the climate emergency, without losing sight of the importance of preserving Brighton and Hove’s rich heritage. 

There’s a strong commitment to elevating the quality of urban design across the city. These developments are not only paving the way for new job opportunities but are also pivotal in stimulating economic recovery in the post-pandemic era, marking a promising future for Brighton and Hove, including your property portfolio. 

Goldstone Apartments

Goldstone Apartments are on track to welcome residents by the end of 2024! Perfectly situated, these apartments offer a swift 15-minute stroll to Brighton Beach and boast excellent connections to central London, blending seaside tranquillity with city hustle. 

The local area is thriving thanks to significant investment, and features the popular Goldstone Retail Park, Hove Park, and convenient access to Aldrington and Hove train stations, making London just a short train ride away.

Victoria Road project

The New Homes for Neighbourhoods programme has facilitated the completion of 42 brand-new council homes on the grounds of the old Housing Office and Portslade Bowls Club. 

These modern homes range from 1 to 3 bedrooms and are nestled within a beautifully landscaped setting, featuring fruit trees, lush lawns, and plantings. The area around Portslade Town Hall, also part of this development, has been enhanced with new landscaping, comfy seating, and an engaging public art piece, adding a touch of beauty and community spirit to the neighbourhood.

This project is a big leap towards Brighton’s sustainability goals. Built with a light-gauge steel frame, the homes are equipped with ground source heat pumps for efficient heating and hot water, solar panels for clean energy, and several green living walls to promote biodiversity. 

Education

Brighton shines as a beacon of educational excellence on the South Coast, celebrated for its diverse and vibrant academic landscape. At the heart of this intellectual hub are two distinguished institutions that we mentioned earlier on – the University of Sussex and the University of Brighton. Before we go further, it is worth mentioning that student accommodation is a very lucrative option to consider if you are looking to invest in Brighton. 

The University of Sussex, nestled in the rolling South Downs, is renowned for its progressive spirit and commitment to research excellence. With a global reputation for innovation and sustainability, Sussex offers a wide range of undergraduate and postgraduate courses that encourage critical thinking and real-world application. Its picturesque campus not only provides a stimulating learning environment but also acts as a cultural and scientific incubator, attracting students and scholars from across the world.

The University of Brighton complements this academic offering with its own dynamic blend of professional focus and creative exploration. Known for its strong industry links and emphasis on career readiness, Brighton offers a practical approach to education, spanning the arts, sciences, engineering, and humanities. Its diverse campuses are spread across the city and beyond, integrating into the urban fabric and allowing students to engage directly with the community and local businesses. 

Together, these universities contribute to Brighton’s reputation as a lively and inclusive city of learning, where students can thrive in a supportive environment, benefitting from a rich tapestry of resources, networks, and opportunities that extend far beyond the lecture room. 

Transport and accessibility

Getting around Brighton is a breeze with its variety of transport options tailored to suit everyone’s needs. Brighton Railway Station is your gateway to adventure, offering regular services that whisk you away to London in just an hour, Gatwick Airport in a speedy 30 minutes, Eastbourne in a leisurely 45 minutes, Southampton in two hours, and various other key locations across the region. It’s the perfect starting point for both local explorers and international travellers.

For those who love to hop on and off at their leisure, the Brighton and Hove buses have got you covered. Their comprehensive network spans the entire city, ensuring you can easily reach all the must-visit shopping spots, iconic tourist attractions, bustling university campuses, and charming neighbouring areas. If you’re visiting or commuting and want to dodge city centre traffic, Brighton’s park and ride facilities help keep the streets less congested and our air cleaner.

Brighton’s road connections have you sorted, too. The city links seamlessly to London via the A23 and to Worthing, Lewes, and Eastbourne via the A27. Like any popular city, Brighton can experience its share of traffic, particularly during the sunny tourist-packed summer months.

In the summer, ferry services offer a picturesque route between Brighton Pier and neighbouring coastal gems like Eastbourne and Worthing. It’s not just a journey; it’s a scenic experience that showcases the stunning coastline from a whole new perspective. Whether you’re a land lover or sea seeker, Brighton’s transport options ensure your travels are easy, efficient, and enjoyable.

Property market overview

The diverse range of properties in Brighton, from Regency and Victorian homes to modern apartments, offers something for every investor’s budget and strategy. Brighton is often seen as a gem on the UK’s property market map, albeit with a price tag that reflects its desirability. 

According to HM Land Registry, the average property price in this vibrant seaside city stands at £433,142. For those considering the types of homes available, detached homes present the most significant investment at an average of £850,277. 

If you’re looking for something a bit more modest, semi-detached properties hover around £547,053, terraced houses at £485,622, and flats offer a more accessible entry point at £332,523. Particularly for those eyeing the buy-to-let market, apartments can be an attractive option, thanks to their relatively lower purchase costs.

Rental yield

So, where are the best areas in Brighton to invest in a buy-to-let? 

• City centre: the average property price in BN1 is £522,911, with the average rental yield being 3.8%. 

• Kemptown: the average property price in BN2 is £465,915, with the average rental yield being 4.97%.

• Fishergate and Portslade: the average property price in BN41 is £420,184, with the average rental yield being 4.33%.

• Hove: the average property price in BN3 is £580,057, with the average rental yield being 3.17%. 

(source: RWinvest. “Brighton Buy-to-Let Guide | Property Investment Insights.” RW Invest, 16 January 2024, https://www.rw-invest.com/buy-to-let-property/brighton-buy-to-let-guide/. Accessed 20 February 2024.)

Investing in buy-to-let property in Brighton in 2024 is particularly timely, given the city’s ongoing development projects and infrastructure improvements. The continued growth in the tech and creative industries and the city’s commitment to sustainability and green living align with broader trends towards ethical investing and could further enhance property values and rental demand.

Moreover, with the post-pandemic shift towards flexible working arrangements, more people are considering moving away from London to cities like Brighton, which offer a better quality of life without sacrificing career opportunities. This trend is likely to continue, also increasing the demand for rental properties in Brighton.

If you’re on the lookout for the best buy-to-let insurance deals, contact us at CIA Landlords today!