Brighton House Sales Drop

Brighton's house sales drop sales volumes in Brighton have decreased by some 28% in a year. April 2017 saw 325 sales, whereas April 2018 only saw 251 sales according to the most recent Land Registry data*. Could this mean that Brighton is becoming a less popular seaside town or is the housing market as a whole coming to a stand still?

The nearby town of Portsmouth has also seen a decrease in the number of house sales, but only of 16% rather than Brighton’s whopping 28%. The decrease in sales across the whole of the UK is only 14%, which shows Brighton’s decrease is far higher which could have serious implications to future sale prices.

Brighton has been a fashionable seaside resort since the Georgian era. People are drawn to its beaches, pier and bustling nightlife. It is home to many students as Brighton University and the University of Sussex are based within it. Around 34% of the city’s population are aged between 25 and 44 (Source: Brighton and Hove JSNA 2015) because of the ever-developing and lively nature of the town.

So, Brighton attracts young people, yet Brighton's house sales drop for the present. The link between these two statements certainly includes the increasing house prices. The average house price over the same period above has risen from £347,209 to £360,166. Although this is only a 3% rise, a fall on the 5% seen in the year April 2016 to 2017. With falling sales volumes and slowing house price increases there can only be only one thing to increase sales and that is a fall in house prices over the next few years. This is especially needed as the average age for a first-time buyer is now 33 years old (Source: English Housing Survey 2016 – 2017) which shows that the young people studying and working in Brighton are struggling to buy and are having to wait by living with Mum and Dad, or renting.

Despite Brighton’s house prices increasing even as Brighton's house sales drop, compared to Southampton and Portsmouth the prices are began to level in August 2017. These other seaside towns are increasing fairly steadily at a rate of around 6% on the previous year, with Portsmouth seeing the highest increases (refer to graph).

The general trend of these towns is a reduction in the average house price increase each month, with Southampton seeing significantly less of an increase in December 2017 on that of November. However in April of this year house prices took a higher increase than previous months, for all three coastal towns. The pattern of house prices beginning to level out ended in April for Brighton, although the increase does seem to be significantly less than that of the other two towns.

Brighton’s increases are depreciating to only around 2% on the previous year. Despite sales volumes being down, it seems that within the next few years Brighton’s prices may become steady or even decrease. This means that housing within this vibrant city may become more affordable for young people and hence, sales volumes could increase again.

* All house price data used in this article is from the Land Registry unless stated otherwise. Latest monthly pricing figures are for April 2018, latest sales volumes are for February 2018.