A lack of new housing in Brighton means homes in the city are simply unaffordable for the majority of first-time buyers. 

A single income is not enough to afford the vast majority of homes on the market, with the median earner only able to afford 3.1 per cent of the sales from the last year. A dual-income household fares better, but even two median earners could only have afforded 41 per cent of the properties. This also assumes a 25 per cent deposit, which works out at more than £80,000, or 16 months’ worth of gross pay.

Part of the problem is that land is highly constrained, with the South Downs National Park to the north and the English Channel to the south. If Brighton is to increase its housing delivery, new build schemes will have to be largely urban in-fill and dense in character – the only way is up.

While overall delivery in the city is low, Brighton and Hove has produced a higher proportion of affordable stock through Social Rent, Affordable Rent, Affordable Home Ownership and other forms of sub-market housing than both the wider South East and England. Nevertheless, this amounts to just 114 affordable homes per year. As the city attempts to boost housing supply generally, it will be important that the proportion of affordable delivery is sustained.

On the affordable housing front, Brighton and Hove Council is leading the way through its own development vehicle: Homes for Brighton & Hove, with housing association Hyde Group. The partnership will look to deliver schemes with 100 per cent affordable housing, equally split between rent and shared ownership.

Homes for Brighton & Hove has two developments in the pipeline with planning consent granted in 2020. Combined they will deliver 346 homes, which would go some way to help.

Another way to increase supply is through Build to Rent – professionally managed rental homes which are often in high demand in less affordable markets such as Brighton. Developers and investors alike look set to meet that demand with First Base, Legal and General, Watkin Jones and Moda all having Build to Rent developments in the pipeline.

Two schemes coming forward this year that will help build new stock across a range of tenures are Edward Street Quarter, pictured top, and Home X. Edward Street Quarter, 168 new build apartments in central Brighton, will offer a mix of one, two and three bedroom homes via private sale, Build to Rent and affordable housing. The second scheme is coming forward as part of the Preston Barracks regeneration in Moulsecoomb, north Brighton, where Optivo is delivering 369 homes on its Home X scheme, including 124 private and the rest shared ownership and affordable. The development will provide a range of one, two and three bedroom apartments and three bedroom townhouses, with the first homes due to complete in the summer.

The Homes for Brighton & Hove partnership is a good start, with shared ownership being key in improving access to home ownership to those with lower incomes and smaller deposits, but Brighton needs to find many more affordable homes to address its level of housing need.

Brighton will continue to be a desirable place to call home. However, without an uptick in new supply across various price points, it will remain unaffordable for many. Ultimately, this will have an impact on the commercial success of the city and its economic growth.

Further information

Contact Guy Dixon or Tom Bryant

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