Brighton rocks! Low risk, strong growth and solid rentals

Many believe the seaside capital of the UK has long since peaked and is no longer classed as a property hotspot for investors.

However, investment experts at Property Secrets, believe Brighton still has lots of potential for investors seeking a low-risk capital appreciation investment with the promise of good low-void letting income.

Some recent statistics have placed Brighton at the very top of the buy-to-let market, even above London, but unfortunately this has gone hand-in-hand with the city’s residential properties being on average amongst the most expensive per square foot in the UK.

“What is surprising about Brighton, however, is that the property market still remains buoyant,” comments Tony Booth, Property Secrets.

“And if anything, property prices in some parts have shown signs of even greater accelerated growth.”

“The city still has neighbourhoods suffering from neglect that will benefit from development, some of which are appearing on the City’s long term local authority regeneration plans.”

“The ripple effect of rising values spreading out from the affluent areas of Brighton started some time ago and I think this trend will continue unabated in the months that follow.”

Earlier this year the second annual Halifax survey revealed Brighton had enjoyed the strongest growth in house price per square metre in the UK and, over the last ten years, it has seen an astonishing 280 per cent increase on average – which is more than in London.

Its Location within an hour of London has made Brighton hugely popular with city commuters, tourists, homemakers and students. Regular train services operate into London Victoria and out of Gatwick Airport, Portsmouth, Kent, Reading and Berkshire. There are also two trains a day that head up to Birmingham and Manchester.

Modern Brighton is recognised as a conurbation stretching along the coast and the Office for National Statistics now puts its resident population close to half a million.

It is one of the largest, most popular and the most accessible seaside resort for those living in and around London, the city also attracts thousands of tourists from all over the country.

It is also very popular with the chic and fashionable moving out of London to the area, which is escalating the growth of property values, increasing the volume of business enterprise and generally improving and expanding the affluence of local people.

The city has a substantial and well-established gay community, which is served by a wide range of bars, clubs, hotels, shops and support organisations.

“It has been likened to San Francisco and is commonly referred to as ‘the gay capital of Britain’. “ adds Tony.

The so-called pink pound is of great benefit to Brighton, because statistics show that gay men earn considerably more than the national average of men as a whole and therefore tend to have a larger disposable income.

The Sunday Times University Guide for 2006 ranked Brighton’s university 3rd in the ‘Top Ten Modern Universities’ in the UK – and it has held on its own crown as the only modern university ever to be named ‘Sunday Times University of the Year (1999)’.

It has over 20,000 students, who all help support a vibrant city nightlife and a buoyant student-let market. Local estate agents suggest 75 per cent of the entire letting market in Brighton is dominated by renting to students.

Brighton and Hove have a dynamic regeneration and development schedule backed by an enthusiastic and proactive local authority, which combine to promote numerous property investment opportunities now and in the near future.

It is a region that has already established itself as the buy-to-let capital – but those who think it may have reached the end of a hugely successful journey may yet miss out.

As part of the millennium celebrations, Brighton and Hove were granted city status in 2000 and since then, it has been busy creating a new and fashionable persona out of its rather old-world seaside resort image.

There are plans to build a 600-foot observation tower called i360, which was approved by the city council in October 2006 and should be completed within three years at a cost of £20 million. Brighton i300 will carry up to 100 visitors at one time in an aerodynamically designed pod to a height of 150 metres above sea level. It is anticipated to attract an additional 100,000 visitors a year.

The new Rapid Transport System (RTS) currently under construction will have a huge benefit to Brighton and Hove.

It will provide a direct service between key destinations including Marina, Hospital, Rail Station, West Pier and King Alfred Centre – and in doing so it will improve access to employment, leisure, housing and economic opportunities for residents and visitors.

“These are just a few of the many regeneration and development projects that are taking place in Brighton in the near future, which indicates that the market is still a good investment.” concludes Tony.

“At Property Secrets, we highly recommend Shoreham, which is just outside of Brighton. It is far less expensive than Brighton yet we expect the biggest capital appreciation over the next year or two.”

“Within close proximity to Brighton, Shoreham is well within reach of everything the Victorian seaside resort has to offer – and with a population of just over 20,000, it has a lot of growing to do before it catches up on its neighbour.”

“Things seem to really be starting to happen there. The developers have moved in and prices are rising – though for now, they are much lower than Brighton levels.”

“A nodding indication of how things are going is borne from the fact that 20 per cent of Shoreham residents commute to London every day. My advice is, if you want to get ahead of the property hotspot boom likely to happen in Shoreham, start exploring the town’s estate agents’ windows now before every property display has the word ‘sold’ stamped across it.”

For further information, visit propertysecrets.net.