Lomond Quarterly Insights Highlight: South Coast Property Market
Rental demand remains high
The rental market in our area continues to be fast-paced, with renter demand outpacing the available supply. Renters with a specific budget are now considering high-quality house shares as an alternative to renting on their own. Additionally, couples are opting for smaller apartments compared to previous trends.
Interestingly, less than one in three (31%) of all new one-bedroom apartment lets in the past year have been to a single occupant, showcasing a significant decrease from over half (57%) three years ago. While the private sector investment market shows a slight reduction, there is a noticeable growth in interest for holiday lets, specifically Brighton Marina developments.
Buyer Preferences in the South Coast
Across our area, there is a diverse range of first-time buyers, home movers, and downsizers actively seeking properties. The newly-launched properties are generating interest and receiving offers, with the majority of sales being agreed upon within 5% of the initial sales price. Location, access to amenities, and property condition play significant roles in buyer decision-making. Well-presented and energy-efficient properties are particularly favoured.
In Brighton, nearly half (47%) of all properties sold in the past year have been apartments. First-time buyers often opt for one or two-bedroom apartments for the flexibility they offer, including working from home, accommodating guests, or future-proofing their investment. We've also noticed that 20% of applicants in 2023 have expressed a desire for a balcony, while 14% have specifically mentioned a roof terrace, indicating a preference for coastal views.
In Worthing, bungalows have become a popular property choice for downsizers, accounting for 11.5% of all sales in the past year. Two- and three-bedroom apartments/maisonettes are also highly sought after. Downsizers in our area often benefit from equity release as part of their property sale, with substantial savings contingent upon location and property type. Cash sales have seen a recent increase, with one in three sales completed in 2023 being a cash purchase, up from 28% in 2019.
Find out more about the UK-wide property market in our Lomond Quarterly Insights here.
Sources: Dataloft, Land Registry, DLUHC, based on median values of sales Q2 2022 to Q1 2023, 26% of all properties let in the last 12 months has been a 1-bedroom apartment, up from 20% 2 years ago. Dataloft Rental Market Analytics, based on new tenancies let across Brighton & Hove and Worthing.