New data on the Brighton and Hove property market suggests house prices marginally rose 0.2% in August. Figures from the Land Registry show average house price sales reached £423,274, representing a 0.2% month-on-month rise.
However, the modest increase fails to reverse the longer-term trend in the city, with average sale prices for residential property dipping 0.1% (£270) in the year to date. This ranks Brighton and Hove 42nd out of the 64 local authorities in south-east England with available sale price data for annual growth.
The Picture for Property in Brighton Compared With the Rest of South-East England
Property prices in Brighton and Hove rose significantly lower than the regional average for south-east England, which saw values increase 1.4% month-on-month. The nationwide average for property prices was a 1.5% month-on-month rise in August, so Brighton and Hove significantly underperformed compared with most towns and cities across the UK.
The picture is looking tougher for first-time buyers in the city. Those looking to get their foot on the property ladder paid £370,600 on average in August 2024, up £1,000 year-on-year and up £48,500 from five years ago.
Looking at average sale prices in Brighton and Hove by property type, there are some clear trends to discuss. Flats and apartments saw sale prices rise 0.2% month-on-month, and sale prices for flats and apartments in the city are up 0.5% in the year to date.
The average sale prices of terraced houses in Brighton and Hove were also up 0.2% month-on-month, but they are down 0.1% in the year to date, sitting at an average of £473,077. Meanwhile, the average sale prices of detached properties in the city were down 0.2% month-on-month and had declined 2.3% in the year to date, falling to an average of £791,570.
Higher Mortgage Rates are Already Weighing Heavily on Bigger Properties
It would appear that detached properties are showing the most distress in the city’s property market, which is no surprise considering higher mortgage rates are bound to affect those with average property values approaching the £800,000 mark.
In a ‘higher for longer’ interest rate environment, it may well be harder than usual for owners of detached properties to sell up. Although the conventional routes to selling bigger, high-value properties may be drying up in Brighton and Hove, there are alternatives. Cash buyers are an increasingly popular option, with ‘sell house fast’ services led by businesses and high net-worth individuals committing to buying homes of any size or condition within seven days.
Selling properties in a higher interest rate environment may prove tougher still in Elmbridge, which has experienced the highest average sale prices in south-east England for August (£691,000) – 1.6 times greater than the average sale price in Brighton and Hove.
Looking at the year to date, Winchester is the area to experience the highest average sale price growth in 2024 across south-east England. The Hampshire city has seen prices rise 9.2%, almost six times the average annual rise across south-east England.
At the other end of the spectrum, the Isle of Wight suffered the biggest decline in average sale prices this year, with property values falling 5.5%.
