Despite the changes to the Stamp Duty rules seeing an increase in tax payable on additional properties, there has recently been a steady increase in demands for buy-to-let mortgages, indicating the buy-to-let market hasn’t been deterred as much as people had anticipated.
If you’re thinking of purchasing a buy-to-let property, it can be difficult to know where to start looking. Brighton has for quite a while been a popular choice for second properties and continues to be so for numerous reasons such as the following:-
Although rental prices actually dropped very slightly in London last year, with an average cost of over £1,800 per month the City is still incredibly unaffordable for many. The appeal of the seaside is usually enough to draw people in, but the more affordable rental prices in Brighton & Hove and great train links to the centre of London (a commute can take 50 minutes) means that more and more professionals are making the move to ‘London by the Sea’ in a bid to save money. It can often work out cheaper to rent in Brighton and commute to London than to both live and work in the capital, making it a great spot for a buy-to-let.
Continued Increasing Rent
Brighton is one of the commuter towns to have actually seen an increase in rental prices within the last year whilst some saw a decrease, and is continually breaking the £1000 per month barrier. 2017 saw a rise of 1.58%, average rental costs of around £1,200 and a yield of 4.3%. As it continues to be such a popular area in which to live, there remains a demand for rental accommodation particularly as an alternative to London for professionals. Figures from Landbay Rental Index suggest that those living in Brighton & Hove currently spend an average of 69% of their disposable income on rent, meaning it remains a lucrative place to buy.
With two popular universities being situated locally, a buy-to-let targeting this ever-growing student population in Brighton & Hove could be a wise investment. Whilst the University of Sussex and University of Brighton do have ‘halls’ for students, many choose to venture into the city. Many students choose to study in Brighton not only for the quality of education, but also the unique culture the town has to offer (and it’s what drew me in when I was applying to University in 2012). BN2 is a popular student postcode and has great links to the university.
The continuing popularity of Brighton & Hove (sunny beaches and being voted one of the happiest places to live helps) is reflected in the increasing house prices. Just last year, Hove property saw an increase in value by a little over 7% (the second largest increase in the UK). Although price increases are predicted to slightly stall this year, this was also predicted last year and Brighton & Hove generally didn’t appear to follow the rule. This indicates that investing in Brighton property might well see you steady and continued month-on-month capital growth.
Contact us today to see how we can assist you with your buy-to-let purchase.