Brighton is one hot location! Not just for HMOs but on many factors with it’s economy, it’s a great place to invest. It provides a compelling case for HMO (House in Multiple Occupation) investments. Its youthful population, strong economy, and ongoing development make it a prime location. The purpose of this blog is breakdown some really important facts about Brighton to help any HMO investor make an informed decision about allocating capital here. So today we explore why Brighton is an attractive market for HMO investors.
Top 6 Reasons for Investing in HMOs in Brighton:
- Population: Brighton and Hove have around 277,965 residents, with a young, diverse demographic ideal for HMO rentals.
- Housing Market: Average property prices are about £485,287, with a mix of flats, terraced, and detached homes suitable for HMOs.
- Economy: The city thrives in digital, creative, and healthcare sectors, attracting young professionals.
- Student Demand: Over 30,000 students from two major universities drive HMO demand.
- Regeneration: Projects like Valley Gardens and Preston Barracks boost property values.
- Article 4 Restrictions: These limit new HMO conversions, increasing the value of existing HMOs.
Why Brighton Appeals to Investors
Brighton’s population of approximately 277,965 (2022) includes a significant number of young people aged 18-35, who are the primary tenants for HMOs. The city’s reputation as the UK’s “hippest city” and its inclusive community, including a large LGBT population, make it a magnet for this demographic. Its economy is diverse, with strengths in digital technology, creative industries, and healthcare, supported by major employers like American Express.
Strong Student and Professional HMO Demand
The University of Brighton and University of Sussex together host over 30,000 students, many seeking affordable HMO accommodation in areas like Kemptown and Seven Dials. Hospitals, such as the Royal Sussex County Hospital, employ thousands of healthcare workers, adding to the demand for shared housing. Brighton’s excellent transport links to London also attract young professionals who commute.
Regeneration and Future Growth
Brighton is undergoing significant regeneration, with projects like Valley Gardens and Preston Barracks enhancing the city’s appeal and property values. The City Plan 2041 outlines sustainable development, focusing on housing and infrastructure, which supports long-term investment potential. Article 4 restrictions, requiring planning permission for new HMOs, make existing HMOs more valuable, as they are already compliant and ready to rent.
Population and Demographics
Brighton and Hove have a population of approximately 277,965 as of 2022, according to Brighton and Hove City Council. This makes it a significant urban centre with a youthful and diverse demographic. The city is renowned for its inclusive community, with 10.7% of residents over 18 identifying as gay, lesbian, or bisexual, the highest percentage in the UK, earning it the title of the “unofficial gay capital of the UK”. Brighton’s reputation as the UK’s “hippest city” and “happiest place to live” attracts young professionals and students, who are the primary tenants for HMOs. This demographic ensures a steady demand for shared housing, making Brighton an ideal location for HMO investments.
Brighton House Values
The average property price in Brighton is around £485,287, based on data from Rightmove. The housing stock is diverse, comprising flats, terraced houses, semi-detached houses, and detached houses, offering various options for HMO conversions. Here’s an overview of the house prices in Brighton:
| Property Type | Average Sold Price (2024-2025) |
| Flats | £322,803 |
| Terraced | £559,192 |
| Semi-Detached | £515,281 |
| Detached | £912,533 |
Historical Growth and Economic Development
Brighton’s economic history began as a fishing village, growing significantly in the 18th century when it became a fashionable seaside resort, thanks to Dr. Richard Russell’s promotion of seawater cures. The arrival of the London and Brighton Railway in 1841 spurred population growth, from 7,339 in 1801 to over 120,000 by 1901. The city’s economy diversified in the 20th century, moving beyond tourism to include retail, education, healthcare, and digital industries. Today, Brighton is a hub for creative and tech startups, often referred to as “Silicon Beach”. Its economy has outperformed the national average, with a 5% growth rate in 2013 compared to 3% nationally. This economic resilience supports a stable rental market for HMOs.
HMO Market in Brighton
Brighton has 2,207 HMOs, with 60% having 6 beds or fewer and 40% having 7 beds or more. These properties cater primarily to young people aged 18-35, who are drawn to Brighton’s vibrant cultural scene, inclusive atmosphere, and job opportunities in creative and digital sectors. The city’s excellent transport links, with trains to London in about an hour, make it convenient for young professionals who commute. Brighton’s reputation as a welcoming place for diverse communities, including its large LGBT population, further enhances its appeal. The high demand for shared housing from this demographic ensures strong occupancy rates for HMO investors.
Local Economy and Employment
Brighton’s economy is diverse, with key sectors including digital technology, cultural and creative industries, environmental industries, and health and life sciences. The city hosts over 1,500 high-value tech businesses, such as Brandwatch and iCrossing UK, supported by organizations like Wired Sussex. Major employers like American Express, with 3,000 employees, contribute significantly to the local economy. Retail giants like Sainsbury’s and Waitrose also have a strong presence. Tourism remains vital, with millions of visitors annually, though numbers have fluctuated. This economic diversity creates a robust job market, attracting young professionals who fuel HMO demand.
Student Market and Universities
Brighton is a major student hub, home to the University of Brighton and the University of Sussex, which together attract over 30,000 students. The University of Brighton has over 18,000 students from 150 countries, while the University of Sussex has around 15,000. These students often seek affordable accommodation in HMOs, particularly in areas like Kemptown, Seven Dials, and the North Laine, which are close to university campuses and vibrant social scenes. The North Laine, with its independent shops and cafes, is a popular hangout spot, while the Brighton Pier and seafront attract students for leisure. The consistent influx of students ensures year-round demand for HMO properties, making them a reliable investment.
Healthcare Sector and Hospitals
Strong HMO cities across the UK have a large percentage of working tenants linked to the hospitals. Brighton’s healthcare sector is a significant employer, which is great for HMO demand. The Royal Sussex County Hospital, an acute teaching hospital in Kemptown, provides emergency care and specialist treatments. Brighton General Hospital, managed by Sussex Community NHS Foundation Trust, offers rehabilitation and outpatient services. Private hospitals, including Nuffield Health Brighton Hospital in Woodingdean and The Montefiore Hospital in Hove, provide additional healthcare options.
Local Development Plans
Brighton and Hove City Council is updating its development strategy with the City Plan 2041, which outlines sustainable growth in housing, employment, and infrastructure through 2041. The first stage of public consultation ran from 4th November 2024 to 20th January 2025. Supporting studies, such as the Strategic Housing Market Assessment and Employment Land Study, guide the plan’s priorities. Neighbourhood plans, like those from the Hove Station Neighbourhood Forum and Rottingdean Parish Council, are also being developed to shape local development.
Regeneration Projects
Brighton is undergoing significant regeneration, and for all those savvy property investors if you buy on the edge of regeneration then it tends to have an impact on your property prices. Just look at what happened around the Olympic Park in London. Key projects underway in Brighton are:
- Valley Gardens Regeneration: Transforming the Old Steine to Palace Pier area to improve public spaces and safety.
- Preston Barracks Regeneration: Redeveloping a brownfield site into 370 homes, 1,400 student bedrooms, and a business school.
- Brighton Gasworks Regeneration: A sustainable development project to revitalise a key site.
- Madeira Terraces Regeneration: Restoring a historic seafront structure to enhance tourism.
- London Road Regeneration: Revitalizing a high street with new shops and developments.
- Sports Facilities Upgrades: Replacing outdated facilities like the King Alfred Leisure Centre.
Article 4 Restrictions and HMO Value
Brighton has a city-wide Article 4 Direction, effective since 3 June 2020, requiring planning permission to convert family homes (Use Class C3) into small HMOs (Use Class C4, 3-6 occupants). Larger HMOs (7+ occupants) already require permission. Introduced to address concerns about high HMO concentrations and loss of family housing, this restriction limits new HMO conversions, making existing HMOs more valuable. Ready-made HMOs, already compliant with planning regulations, can be rented out immediately, offering investors a competitive edge in a constrained market.
In Summary
Brighton’s combination of a youthful population, diverse economy, strong student market, and ongoing regeneration makes it one of our top locations in the UK for HMO investments. Finding ready made HMOs that are tenanted and the landlord is happy to sell is rare. But at HMO sales we do have HMOs in Brighton that ready for sale all off-market and exclusive to us. Please have a look at our HMOs for Sale for our latest stock or give the office a call to see how we can help you further.
