Brighton’s quieter, residential neighbour Hove was voted the best UK property hotspot for young professionals in a recent bank survey – for a second year in a row.
Two other Brighton postcodes – BN1 and BN2 – also vied for the annual survey top spot, conducted by Lloyds Bank, but Hove pipped the postcodes to the post for 25 to 44-year-old buyers in England and Wales.
As we’ve discussed before, the character of Brighton and Hove makes it a deserving winner of any property title. The allure of coastal life, coupled with great travel links to London and beyond, continuously places Brighton and Hove on the UK map, not only for young professionals, but also families and older buyers – there’s a neighbourhood for everyone.
Although property prices in the city have risen the most dramatically during the past twenty years, prices here are still around 38% cheaper than nearby London, which is currently undergoing another price surge as an impact of the referendum vote.
Like any large city or town, certain parts of Hove are more attractive to younger buyers than others, mainly for their affordability. Properties in BN3, for example, are currently stamped with an average price tag of £317,191, which is around 12% less than the whole of the Hove area.
Top tips for property buyers in a competitive market
There are a number of challenges that can arise when buying a property in a UK hotspot. Here are the most common issues, and our advice on how to manage each situation.
Gazumping – when the seller of a property accepts a higher purchase offer, having already accepted a lower offer from another potential buyer. Brighton became a gazumping hotspot in 2014 due to property price increases that far outstripped predictions. It is in the best interests of the agent to not get involved with gazumped deals as it can damage their reputation, but it can still happen. Our advice is to prepare beforehand with a fair offer that in line with the asking price; to have your mortgage in place to speed up the process; and to make sure your property has been withdrawn from the market once the seller accepts your offer – this can take up to six weeks.
Offer withdrawals – common reasons for offer withdrawals include another buyer putting in a higher bid, keeping hold of the asset during a period of price growth, or waiting to sell due to other market conditions and policies. The buyer does not have any rights to claim the property as their own before contracts are exchanged, but you can ask the seller to contribute towards any costs such as legal fees that you have incurred – although they are not under any obligation to do this.
Collapse in a chain – unless you are investing in a new build, the majority of property sales include a long buyer’s chain that is dependent on the success of linked transactions. If the chain does fall through, you can invest in home buyers’ protection insurance to safeguard you against financial risks, but you will need to look elsewhere. We recommend talking to a local property advisor at this point to continue with another purchase.
Consider your options – regional property auctions now outshine national residential markets as this route to market is providing reassurance in the property world, and highlights the importance and value of local stock being sold to local buyers through nearby auction rooms. Urgency and opportunity favour a local auction as the best method of sale, and auction lots match the same quality levels found in the wider residential markets. For more information, contact our auctions team on 01273 20 19 80.