A cosmopolitan city in East
Sussex, Brighton and Hove
were previously separate
entities, but were united in
1998. Close to London with
great sea views, thousands
choose to live on the coast and commute
to work and with a large student
population and vibrant gay community
there is a unique, lively atmosphere.
A fishing village, Bristelmestune
mentioned in the Domesday Book (1086),
later became Brighthelmstone. 800 years
on, the arrival of the railway turned it into a royal resort but after WW2 Brighton and
Hove gradually drifted into the doldrums.
As the University of Sussex and Brighton
Poly (now University of Brighton), grew,
the enthusiasm that ex-students had for
the town created an energy which spread
towards London, attracting the attention
of jaded city dwellers. In the late ’80s, there
was an influx of immigrants from London,
Liverpool, Manchester, Oxford, Edinburgh,
Bristol and Cambridge.
Brighton nurtured its reputation as a
raffish outpost of fun and is proud of its
heritage. With a wonderful seafront,beautiful coastline and the South Downs,
it has been a pleasure dome for visitors
since the Prince Regent built his Royal
Pavilion in the 18th Century; flamboyant
and magical by night and day.
Despite City status Brighton and Hove
retains a village feel. In the rambling Lanes,
boutiques sit between 17th Century fishing
cottages and contemporary apartments.
Bohemian Kemp Town boasts some of the
finest Regency architecture; Brunswick, in
Hove is elegantly traditional.
Zoe Ball, Nick Cave and Paul McCartney
have claimed their own piece of the seaside. Jamie Oliver’s new Italian
restaurant boasts a “diverse city with a cool
and vibrant culture – plus loads of proper
seaside tradition”. Brighton’s period style,
independent shops, the newly listed South
Downs National Park, the prom, pavilion
and pier, attract millions of tourists.
DEMOGRAPHICS
While many residents commute to their
London jobs, Brighton focuses on tourism
and retail, but local business is as
cosmopolitan as its 250,000 residents. 45 per
cent are single-person households, only 0.8
per cent are second homes,
30,000 are students who
will be joined by 20-30,000
new residents over the
next 15 years. This puts
pressure on the local council
to develop its housing strategy
and try to meet demand; in an
established, crowded area with Green Belt
all around, that’s a challenge indeed.
Unemployment is at 3.6 per cent.
11 per cent are retired; 27 per cent work in
public services; 23 per cent in business and
financial sector, 17 per cent self-employed.
LIFESTYLE
Brighton and Hove offers one of Britain’s
best lifestyles. A vibrant culture offers a
fantastic nightlife, parks, gardens, beaches
and amazing cultural events. For centuries,
writers, artists, actors and intellectuals
have made the city their home, enjoying
the excitingly diverse and tolerant
population.
ACCESSIBILITY
Arriving at Brighton station with the sea
stretched out before you is very
pleasurable. An extensive public
transport system offers trains to
London in 55 minutes and the
A23/M23 gives fast road links
to the capital (less than two
hours). Gatwick is 20 minutes
by rail. Ferries from nearby
Newhaven go to Dieppe and
Le Havre. Getting around
town on foot or bike is the
easiest option and bus services run
to outlying areas.
SHOPPING AND EATING
The town centre and seafront arches offer
400 bars, cafes and restaurants Shopping is
a truly original experience – endless
spending opportunities from the Churchill Square mall, the maze of
boutiques, antique shops and jewellers in
the Lanes, bohemian clusters of the
North Laines and designer outlets at
Brighton Marina.
DOWNSIDE
Crowds of day-trippers in summer and low
local wages. Although friendly, the
community is transient as students and
creative people move on. As a leisure town,
it offers little career progression outside
service industries and self-employment.
Some detect – and enjoy – a slight air of
seediness mixed with hedonistic tolerance.
SEASIDE PROPERTY – OVERVIEW
Glorious Regency terraces, crescents and
squares on the seafront, Victorian terraces
in West Hill and Kemp Town and a
growing number of loft and warehouse
conversions, there is no shortage of
housing options.
The property market has seen enormous
growth, averaging over 13 per cent a year,
compared with a national average of 9·8
per cent, or 265 per cent over the past
10 years. The rapidly growing population
and a high proportion of young people
makes accommodation in Brighton a
sound investment.
House prices nearly reached London
levels; local wages did not. Two years ago
average property prices in Brighton and
Hove stood at £220,734, well above the UK
average of £179,935 but the wage level was
12 per cent lower than the national
average. As the location was highly
desirable, house prices spiralled. The
Halifax reports the average UK house price
now stands at just under £154,720; in
Brighton and Hove it is £249,950 – plus a
premium for a sea view.
Two years ago some property experts
were predicting a slowing of demand due
to high property prices being unaligned
with local salaries and an increase in
interest rates. However many Brighton
agents were less concerned about
affordability, probably because most buyers
came from London, either for a second
home or to relocate, possibly commuting
to the capital to work. As long as the
London market remained healthy things
looked rosy – it was not so much a local
economy supporting the housing market
in Brighton, rather the London economy
supporting it. Agents were confident that
there would always be a demand as there is
always a shortage of good properties in
Brighton, particularly in Kemp Town.
Estate agents that we spoke to report a
vibrant market, “The sun came out early in
the Spring and viewing levels shot up.
My diary has gone mad,” says Andrea
Harding, of Hamptons. “It’s way up on last
year, no lack of demand, it’s just been about
funding. Now the banks are being more
open, people want to take advantage.”
Over 100 sales and letting agents cover
Brighton, dozens more lie in the
surrounding rural area. “Despite the
constant barrage of bad news in the press,
the reality is that there is still a market for
houses with realistic guide prices.
The right product, at the right price, in the right place will sell”, comments Paul
Taggart, Associate Director at Hamptons
Brighton and Hove.
Joe Wheeler of Wheeler Estate Agents
agrees, “The Brighton market is very
buoyant with houses selling in a few days
if they are priced realistically.”
Neil Sutherland of Neil Sutherland
Estate Agents reports a sharp increase in
buyers. “As demand has swelled prices
have been driven up by approximately
seven per cent. However sellers still remain
cautious as they can’t see suitable
properties and they now have to have a
HIP.” Neil Sutherland recently sold a lovely home off Elm Grove which was on for less
than a week, had eight viewings and six
offers, with completion within a month.
Martine McIntyre, Associate Director of
Tingleys says, “The man on the street could
be forgiven if he is a little confused about
the state of the property market.
Although the general consensus
is that property will remain a
tough market for the rest
of the year, savvy clients
have been taking
advantage of
significantly reduced
asking prices compared
to last year. Although
the banks are still
favouring a strict lending
criteria, if you have no chain
behind you and a sizeable
deposit, you have a very strong
bargaining position and are able to strike a
good deal with a motivated property seller.”
Paul Bonett, Director of Bonett’s Estate
Agents, reports that as sales prices are
settling, there is a definite increase in
demand and a lack of property. “We have
had about 300 registered buyers in the first half of 2009 (15 per cent first time buyers),
with about 35 properties available and
about another 15-25 under offer. Selling
prices are about four per cent under asking
price, taking about eight viewings before a
sale is secured and about six weeks to sell
but that is speeding up.
Hugh Tucknott, is Associate
Partner of residential sales at
Parsons Son & Basley,
which has 175 years
collective experience in
Brighton sales, lettings
and auctions. “Our
cheapest flat is a one bed
at £129,000. It goes from
there right up to the most
expensive seafront
3 bedroom at £700,000. The
Lewes Road is student area. At
the moment there are a lot of parents
looking to buy a property for their children
going to university; a good investment.
There have certainly been falls in prices of
15-20 per cent, but it is beginning to level
out and we will see prices bottom out by
the end of the year. We’ve certainly seen
first-time buyers starting to look again.”
Multi million pound sales are
commonplace in Brighton. £3·25 million: a
six bedroom house over five floors, directly
on Hove seafront. £3.6 million – the classic
five storey ‘Brighton look’ house with
Italianate front. Apartments within these
buidings may cost up to £400,000
especially with a good sea view. £3·35
million – an eight bedroom house on
Tongdean Road. £2 million – a home on
Esplanade. Brighton also recorded its first
£1 million flat, a four bed seafront
apartment. Family homes go from
£350,000 to several million. Those priced
out of central Brighton head further out,
buying in Portslade, Shoreham, Saltdean
and Peacehaven.
Kemp Town and Hove are favourite
locations for incomers. Kemp Town, east
of Brighton’s town centre, with a bohemian
feeling. In the 19th Century it was an
actors’ and artists’ quarter and is now the
epicentre of the city’s gay scene.
HOVE ACTUALLY
To many people Hove, which extends from
West Brighton to East Portslade, is
considered more desirable than Brighton
(we live in Hove, actually) but shares its
Regency splendour. Hove is popular with
young families for its wide tree-lined
avenues, green spaces and, of course, the
beach. With converted flats along the
seafront and grand four bed family homes
a few streets inland, the Poet’s Corner area
of West Hove offers slightly more
affordable family terraced houses.
BEST VALUE PROPERTY
Compared to other property types in the
area, flats represent the best value. The
average cost of a flat is £189,950, about
80 per cent of the average for all property
types. The percentage nationally is 93 per
cent, suggesting that Brighton and Hove
flats are relatively cheap. Findaproperty
advertise studio flats for £102,892, 1 bed
flats for £157,635, 2 bed flats for £233,324
and 3 bed flats for £341,506.
SMARTEST STREETS
£1 million-plus streets include Withdean
Road and Tongdean Avenue, for
substantial detached houses while
Montpelier Villas and Royal Crescent offer
period panache – a four bed house in
Royal Crescent Mews is on the market at
£950,000. Marine Parade is the seafront of
Kemp Town, with two miles of Regency
terraces and crescents, ending by Lewes
Crescent, Sussex Square, with its gated
Sussex Gardens and a tunnel leading to the
beach. Equally posh are Esplanade – with a
private beach, Palmeira Square and
Brunswick Square.
WHAT’S AVAILABLE
- £425,000 – four bed house in Saltdean,
walking distance of the sea. Decked
garden, garage and off-street parking.
Winkworth.
- £1.4m – six bed detached Victorian
house in Hove, drawing room, dining
room, roof terrace, garden and garage
for four cars. Strutt & Parker
- £354,950 – two bed city-centre flat
available off-plan in the Glass Pavilion
development, 300 yards from Brighton
Pier. Under-floor heating, some have
balconies. Mishon Mackay.
- £419,950 – four storey Victorian 4 bed
house in St George’s Terrace, close to
the seafront in the heart of Kemp Town.
Bonett’s.
- £349,950 – two bed ground floor flat in
a listed building. Lewes Crescent, Kemp
Town. Strutt and Parker
- £375,000 – three bed maisonette with
roof terrace, Lansdowne Place, Hove.
Strutt & Parker.
WHAT’S NEW
Mishon Mackay has recently sold the last
of 21 townhouses, priced from £450,000, at
Gladstone Row in the New England
Quarter near the railway station. Marine
Gardens is a development of four live-work
units in Kemp Town, from £200,000
through Graves Jenkins. The Mirage in
Hove will comprise nine luxury flats
through Mishon Mackay. Coast has 40 two
and three bed flats for sale from £175,000
through Savills.
The One Brighton Development located
in the city’s New England Quarter will be
one of the UK’s first environmentally and
socially sustainable “One Planet”
communities. It is a joint venture between
Crest Nicholson and Bio Regional
Quintain and will result in a iconic scheme
of eco-studios and one and two bed
apartments. One Brighton is linked to local
cycle routes leading into the city and also
to Brighton train station, and for travelling
further afield, the on site Car Club means
residents will be able to hire a car as and
when they require. Prices start from
£125,000.
RENTAL MARKET
The buy-to-let market in the city is very
strong, encouraged by two universities and
numerous colleges and language schools.
Brighton and Hove Council statistics show
that at 18 per cent, the proportion of
private rented accommodation is twice the
national average, while council housing at
12 per cent is less than two thirds of the
national level and Housing Association
property is below the national average of
4.5 per cent. More social housing is needed
but because land is so expensive the cost of
rental would be at least as much as that in
the private sector.
Rents in Brighton and Hove are strong.
Leaders (the largest letting agent in the city) say that rental prices have increased
by up to 20 per cent in recent years.
Studios are £500 pcm; one bed apartments
£650-£900; two bed £800-£1,500; three/
four bed apartments and houses up to
around £1,000-£3,000.
David Thorne, lettings manager of the
Western Road branch of Leaders, says,
“Brighton is a very big rental town, with
thousands of students as well as a very
broad mix of people who choose to rent
here first before they buy. I moved down
from London eight years ago and every
year I see the number of commuters from
Brighton to London increasing. The good
schools down here are a draw for many.
The amount of rental stock in Brighton is
on the up as many choose to rent out
properties rather than sell. However, as
new tenants will tell you, this gives
bargaining power on rental prices and
many landlords are renovating properties
or adding extras to entice tenants. When
we hit May the rental market goes nuts,
because people want to be here for the
summer and students look towards the
next academic year. Gardens can be
important because central Brighton is quite
urban, they are a really big selling point.”
Leaders have a number of properties
which include tempting incentives. A two
bed fully refurbished apartment in walking
distance of the station, at £1,295 pcm
included a plasma TV and new appliances.
Others include designer kitchens and
bathrooms and a car pool scheme, giving
residents the use of a car without having to
own one – and add to the parking issues!
Bonetts say that those seeking rental
property are spoilt for choice. Their
lettings department had its busiest first
quarter ever and they are expecting an
even busier summer this year than in 2008.
Says Paul Bonett, “Rentals are busy but
prices are about 10 per cent lower than the
early part of the year. They may come
down a little more as there is a lot of supply
but people are not feeling ‘well off’.”
Andrew Boyle, MD of Brighton Lettings
(part of the Town and Country Property
Services Group) reports a slow first four
months of 2009 due to oversupply but the
market has become more balanced as the
sales market improves. “There are plenty of
prospective tenants who are able to be very choosy, resulting in a higher than normal
viewing to let ratio.”
According to Martine McIntyre,
Associate Director of Tingleys, at the start
of the year there was a greater supply of
properties than demand. “Landlords were
advised to ensure their property had the
competitive edge. A few months on, some
say this has reversed, demand is greater
than supply. To a degree this is correct.
Many agents incorporated rentals to keep
their business ticking over which had a
detrimental effect on the specialist lettings
agencies. Sellers couldn’t sell therefore
offered their properties for six-month
rentals. The insecurity of a tenancy term
forced many tenants to sit tight where they
were and not move. With turnaround
reduced and investors not buying, demand
became greater.”
Quality of rental accommodation varies
enormously but it has improved. Rand &
Co believes that this is probably due to the
number of homes that would have been on
the sales market but are now offered for
rent. Jo-Blaise Martin from Massey
Property Services agrees: “We are saying to
landlords, their property has to be either
the best property tenants see that day or
the best value for money – if it doesn’t fall
into one of those categories it will take
some time to let.”
Hayley Majtas of Rand & Co feels the
market will very slowly improve and rents
will level out to 2008 prices; “Demand has
definitely dropped. Rents have dropped
and most tenants now offer less than the
advertised price.”
THE AUCTION
Scene
Clive Emson Auctioneers, one of the
southeast’s largest property auctioneers,
has not seen a substantial increase in the
number of properties going to auction in
Brighton and Hove. Fox and Sons Auctions
report that lots are down on a year ago
about 30-40 per cent – the Essential
Information Group reports a national 31
per cent decrease in lots nationwide but a
47 per cent decrease in southeast England.
Austin Gray Auctioneers would agree that
lots are quite hard to come by but all three
auctioneers have seen a significant increase
in interest from potential buyers.
James Emson, Auctioneer at Clive
Emson reports a great demand for all
property that is competitively priced,
especially unusual properties and those
requiring modernisation. “The investment
market has seen a good interest from
existing investors and private individuals
disheartened by the low return on their
savings.” he comments. “Both residential
and commercial properties are in demand
as long as they are priced realistically and
buyers can see a return, either from
investment or capital growth. We have
seen a fair number of residential lots
bought by owner occupiers, especially ones
in good locations.”
Austin Gray Auctioneers’ July Auction
was their largest in five years. “There has
been a considerable increase in the level of
enquiries and viewings, even for
development lots for which there was little
or no interest last year”, says Nick Muston,
Auction Manager of Austin Gray. “The
residential market has shown a marked
improvement since the grim final quarter
of 2008, with easily rentable flats proving
particularly popular with investors who
want a better return than they currently
achieve on deposit accounts.”
Auction prices appear to be holding
relatively steady. For the same six month
period in 2008 Clive Emson sold 362
properties at an average price of £138,000,
in 2009 they have sold 325 properties at an
average price of £126,000. Some of this can
be attributed to the current market, some
to the fact that larger properties are harder
to finance at present.
John Colman, Sussex Auctioneer at Fox
and Sons, says prices are up on six months
ago, perhaps similar to last year. More than
80 per cent of their properties are reaching
or exceeding reserve and a number have
been sold at a significantly higher price
than expected. “A year ago lots were selling
but not surprising us on price”, says John. “Now 30 per cent are going for more than
we would have expected a few months ago
– due to demand.”
Fox and Sons auctioned a house in
Crawley which achieved £191,000 against
a guide of £130-140,000 and another
house in Worthing that exceeded its
guide by £40,000.
Clive Emson recently had several good
investments that exceeded guide prices.
James Emson believes that this is down to
people looking at a lot and deciding that to
them it is worth more for convenience or it
is their preferred area. In Rottingdean they
had three flats offered individually with a
total guide of £225,000 – on the day the total realisation ended at £326,000.
Clive Emson Auctioneers has auctioned
376 properties with a success rate of 87
per cent including the lots sold post.
Austin Gray also report excellent success
rates of 78 per cent on the day climbing to
84 per cent with post sales. “If I look back
at the results achieved at the end of last
year, I would be confident of bettering
those prices now”, adds Nick Muston.
“I sold a very dilapidated, ex-squatted, two
bed house in Surrey Street opposite
Brighton Station, next door to a pub and in
the same road as two “adult” shops in a
recent sale for considerably more than the
guide of £130-£140,000, (which certainly
attracted the crowds, but given that it
would need £70,000 spent on it and when
finished would be worth £220,000 it
seemed sensible) It sold to an owner
occupier on the day for £190,000. Bedford
Square, Brighton, a registered HMO
producing £41,000 pa sold for £450,000.”
Auction houses in Brighton are dealing
with a mere handful of repossessions. Fox
and Sons report 5-10 per cent maximum,
significantly fewer than expected. Clive
Emson auctions have about one per cent
sold by the mortgagee. “There is still a
myth that repossessions are cheap; this is
not necessarily the case, the mortgage
companies are bound to achieve the best
possible price they can. All the properties
in the Clive Emson catalogue are marketed
with realistic guide prices,” comments
James Emson.
COMMERCIAL MARKET
The downturn in the UK commercial
property market in the last few months
shows no sign of abating, but there are
pockets of good news, Brighton would
appear to be one.
Colin Brades, Associate Partner of
Cluttons LLP, reports that industrial, retail
and office space are all holding up relatively
well and there is life across prime,
secondary and tertiary markets. In
Brighton the retail sector has seen the most
significant rise in the last three months for
requirement, demand, viewing and offers.
“Supply across all three sectors is pretty
consistent at present”, he says. “There is
mainly a letting demand but freehold
requirements are holding up. Prospective
tenant demand for rent free periods has
increased and we are seeing a rise in offers
based upon RPI linked, collared and
capped rent review and lower premiums
are being offered and secured. Six months
ago landlords were reluctant to offer
greater incentives but today they are now
well educated as empty property rates bite.”
Philip Graves, Director of Graves Jenkins
believes that demand has increased since
the start of 2009 but that 90 per cent of
transactions are now leasehold rather than
freehold (70/30 ratio before). He reports no
over-supply in any sector with small offices
and industrial 1,000 to 2,500 sq ft and retail
units are in most demand. The company is
achieving average rents per square foot of
£8-£9 for industrial, £13-£14 for office,
£40-£50 for retail and prime retail
£130-£150. Philip says that they are not
seeing any serious reductions in rates but
more flexible lease terms – 3-6 months
rent free, terms from three years or breaks,
and limited liabilities.
Simon Forrest, Head of Commercial at
Oakley Property reports that Brighton
town centre retail, especially in the North
Laine area is the sector most in demand.
Also popular are centrally located offices
up to 2,000 sq ft. Average retail rents per
square foot vary between £10-£300
depending on location, industrial £6.50-£9
and offices £10-£17.50. Rents for offices are
on average down by 15-20 per cent,
industrial down by approximately 10 per
cent and retail, in poor locations, down 20
per cent, in good locations they are static.
Simon believes that the incentives
available are working to some degree.
“Most landlords are offering incentives so
it becomes a sort of ‘arms race’ with
landlords trying to offer better deals than
their competitors and this has driven rents down.” One client is offering ‘buy deals’, the
objective being to sell – eventually.
“Tenants can rent for up to two years and if
they take up the option to purchase they
will have their rent refunded! As well as
lower rents being offered, we also see
stepped rents (with reduced rental terms at
the outset of the lease) or rent free periods.”
Oakley Property provided three
examples of recent deals: 70 Old Shoreham
Road, Hove – self-contained office building
of 1,070 sq ft, sold freehold for £317,000;
Lewes Road, Brighton – retail warehouse
of 3,250 sq ft, let on a new 15 year lease at
£40,000 pa; Sydney Street, Brighton –
ground floor lock up shop of 535 sq ft, let
for five years at a rent of £12,000pa.
Parson Son & Basley also report that
retail and office space is in the greatest
demand, though Barry Hough,
Commercial Agency Manager says
“Demand has decreased, I can see no
excess in supply.” Again he believes that the
incentives on offer such as rent free
periods, low starting rents and flexible lease terms, are good tools to attract
tenants. Recent deals include Chatham
Place, Brighton – a lock up shop of 200 sq
ft plus 300 sq ft storage, letting at £7,000
pa. and 922 sq ft of first floor offices in
Portslade letting at £12,100 pa.
Over the next two years Parson Son &
Basley and Cluttons LLP both envisage a
fairly static market, followed by slowly
improving market conditions. Philip
Graves of Graves Jenkins says: “Fortunately
Brighton and Hove attracts tenants in all
types of market, but the city is by no means
completely recession proof.” Oakley
Property expects to see a return of the
development and investment markets over
the next two years.
Current house prices in Brighton and Hove
represent the actual asking prices for homes
for sale calculated daily from the properties in
the Home.co.uk property search, 15th July 2009
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