Brighton records the largest increase in rents in 2015
We’re only a few weeks into 2016, but there is already good reason for landlords in Brighton to be cheerful and optimistic.
New findings from insurance provider HomeLet have revealed that the popular seaside resort – often known as London-by-the-Sea – recorded the biggest increase in rents last year among the UK’s largest towns and cities.
The HomeLet Rental Index – which provides comprehensive and up to the minute data – found that rents on new tenancies signed last year in Brighton were, on average, 18% higher than on new tenancies agreed in 2014.
In 2014 the average rent on new tenancies in Brighton stood at £913. In 2015 it rose to £1,078 pcm. That’s a 7% bigger rise than Greater London and a 13% bigger rise than both Manchester and Nottingham. In fact, only Bristol can match Brighton for rental market growth in 2015.
There are myriad reasons for this, but the most simple one is that demand for rental properties in Brighton and Hove continues to be very high.
It’s more affordable than London – with cheaper rents and a lower cost of living – but it’s still within commuting distance of the capital, the pace of life is generally slower and the transport links are varied and excellent.
This means young professionals who have been priced out of the city may be looking instead to life on the coast.
Brighton, too, has long been associated with a bohemian, alternative lifestyle that makes it popular with creatives, artists, writers, photographers and musicians. Many people from these demographics prefer to rent, which further increases the pool of tenants that landlords have to choose from.
Furthermore, young families will be drawn by the more affordable rents, the joys of coastal living and the easy access to green space and good local schools.
We’ve blogged before about the attractiveness of Brighton and Hove to young professionals and City workers who are tired with life in the capital.
The trend for this demographic to branch out from London for more affordable locations elsewhere shows no signs of slowing down, as the twin pressures of high house prices and high rent gradually squeeze people out.
As we can see from HomeLet’s data, places like Brighton will be the ones to benefit from the extra demand.
With demand high, landlords should feel confident about the prospects of rents rising once again in 2016.
Whether or not Brighton will be leading the way again is something will have to wait and see, but it seems certain that the town will be there or thereabouts when the next set of annual rental market reviews come around.
To find out more about letting property in Brighton, Hove and the surrounding areas, please get in contact with Marc Cox on 01273 416732.
If you would like to find out what you could be charging in rent, why not check out our handy and free Letting Valuation tool.