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Snap up seaside property now, say experts

7:11am Monday 9th July 2007

comment Comments (48)   Have your say »


First-time buyers have been advised to invest in a Sussex seafront property before prices escalate and the last remaining bargains disappear.

Despite the rising house prices, first-time buyers can still find an affordable home in a number of Sussex's seaside resorts.

Seafront properties are still available in many of the county's towns for £150,000, less than the national average house price of £209,000.

The last remaining bargain hot spots include Worthing, Littlehampton, Shoreham, Horsham, Bognor, Hastings, St Leonards and Eastbourne.

Council leaders and estate agents have advised people to invest in Sussex's seaside towns at the earliest opportunity before prices escalate.

Melanie Bien, of the mortgage broker Savills Private Finance, said: "Pretty seaside towns can act as a premium to house prices.

"The attraction of UK seaside resorts is growing as regeneration of towns and the clean-up of beaches make them more attractive to nostalgic holiday makers and home purchasers alike."

And Martin Ellis, chief economist at the Halifax, said: "There are still some bargains to be had for first time buyers and home movers."

A study of house price inflation around Britain's favourite seaside towns has revealed property prices have soared 223 per cent since 2000, compared with a national increase of 195 per cent.

Worthing Borough Council leader Keith Mercer said: "Sussex is one of the most sought after locations in the country to live.

"We have noticed a lot of young people and families moving to Worthing because of the difference in property value compared to other towns.

"We are pleased because part of our council policy is to encourage young families to move to Worthing.

"Worthing is excellent value for money with good shops and schools which makes it an attractive place to live.

"But how long it continues is another matter because eventually we are going to run out of property."

The regeneration of Hastings and St Leonards has increased property prices but homes in the towns remain amongst the cheapest in Sussex.

Hastings Borough Council leader Peter Pragnell said: "Hastings is a wonderful place to live and it is only going to get better.

"People have been buying in Hastings for five or six years since the regeneration started and it has become a more attractive place to live and work."

Bognor is another investment hot spot because a £500 million regeneration project is in the pipeline.

There will be new cafes, restaurants, shops, hotels, offices, housing, entertainment venues, open spaces and a public health centre. About £100 million will be spent on the seafront.

Arun District Councillor Sandra Daniells, who represents Pevensey in Bognor, said: "Bognor is seen as the poor relation but that is exactly why we want to regenerate it.

"It is a good place to invest now while the prices are relatively low because after the regeneration they will rise."

Eastbourne has long been touted as a boom town but the latest Halifax figures show the housing market has increased by 14 per cent over the past three years, which is one of the smallest rises in the country.

A report by agents Knight Frank, called Surging South, predicts a hike in property prices because people are moving to the town from London.

The number of homeowners commuting to London has increased by 82 per cent in a decade.

Eastbourne Borough Council leader David Tutt hopes property prices do not rocket because people are already priced out of the market.

He said: "We might have some property prices which are lower than other resorts, particularly Brighton, but I wouldn't call them bargains.

"We have an awful lot of young people trying to get on the property ladder but it is impossible.

"When people talk about bargains it is applicable for those people on high wages who move down from London and not for the people living here."

Have you moved to one of the towns mentioned to take advantage of the lower property prices? Tell us about it below.


Your Say YourThe Argus

Alan, Brighton says...
8:13am Mon 9 Jul 07

The government needs to ban buy-to-let or at least not make it worthwhile financially. Otherwise there will be a whole new generation of an underclass.

Alan, Brighton says...
8:14am Mon 9 Jul 07

The government needs to ban buy-to-let or at least not make it worthwhile financially. Otherwise there will be a whole new generation of an underclass.

george, hove says...
8:21am Mon 9 Jul 07

Alan wrote:
The government needs to ban buy-to-let or at least not make it worthwhile financially. Otherwise there will be a whole new generation of an underclass.
Right on! lets ban anyone who makes a profit from others, like shops, garages and business in general!

Sue, Hove says...
8:23am Mon 9 Jul 07

Great Idea.Brighton could start the way. All let properties should have to pay extra council tax as they generally have a multiple occupancy. Surely there should be a limit ot how many houses some people own - some have many houses but they can only live in one house at a time.

Louise Evans, Brighton says...
8:27am Mon 9 Jul 07

Like we wouldn't if we could! Do they really think that none of us have considered how much more expensive property will be in the future? Most of us are already priced out anyway, which is why we haven't yet snapped up those few remaining 'bargains'...

sc, Brighton says...
8:49am Mon 9 Jul 07

In other words:

"Those with most to lose from a property crash, advise everyone to pile in now, before it all goes pear shaped, before we lose our livelihoods."

Those of us old enough to remember, see certain similarities with what happened in the last property crash.


Brad, Brighton says...
8:49am Mon 9 Jul 07

It is a bit more complex than that George. Everyone needs a home and the security ownership can give. Do you really want a return to the landowners and serfs? Why is their so much greed in this country nowadays? It is not necessary. There are lots of ways of provision for retirement without exploiting others. Multiple property owners wouldn't like it if they were in the same position.

One thing though, sooner or later the government will realise that this is an untouched cash cow and tax the death out of the buy to let brigade. Sooner that happens, the better (oh and I am a homeowner, not sure of a few bob, before I am attacked and told I'm jealous).

Stu, Brighton says...
10:43am Mon 9 Jul 07

Actually it's a bit more complicated than that, Brad. You can't go around "banning" buy-to-letters, /investors/developer
s who put their money in our country's economy from all over the world. I think some of the legal profession are parasites, but we can't go around banning them all! Property and profits from all aspects of it contibute enormously to the public purse, who will get taxed when that income stream is "banned"? You and Me.

Jon, Brighton says...
11:12am Mon 9 Jul 07

Our lovely new PM Gordon started all this when he raided everyones pensions a few years ago, it made buy to let seem a lot safer than pensions, unfortunately this has priced property out of a generations reach. Unfortunately, the only way to resolve it now is to gradually introduce a buy to let tax to return some property to the market, and give people more reason to buy pensions!

Pam, Brighton says...
11:29am Mon 9 Jul 07

These buy to let taxes are an excellent idea. However, some provision must be in place to make sure extra costs are not passed on to tenants. Maybe some degree of rent control where the council decides the limits of rent?

Stu, Brighton says...
11:46am Mon 9 Jul 07

Jon's right. If pension schemes were made more attractive, secure, and not able to be ransacked by the corporate fat cats, people would invest there. That is surely better than taxing landlords who will either sell their properties for max profit (out of reach) or pass on their financial burden to the tennants. You can't legislate against rent rises, Pam. The poor will be losers.

Arnold Tempest, Preston Park says...
12:08pm Mon 9 Jul 07

Whenever you see firms of estate agents telling people to buy at the top of the market, it's time to convert everything you own into cash!!

Eddy, Hove says...
12:08pm Mon 9 Jul 07

Estate agents want you to buy houses. Well that is a shock.

Martin, Brighton says...
12:35pm Mon 9 Jul 07

A bargain at £150,000! With most mortgage companies now wanting 10% deposit a first time buyer only needs to find £15,000 deposit, £1,500 stamp duty, £600 solicitor fees, £600 searches charge. That is only just shy of £18k up front. With saving rates so low it is no wonder there are so few FTBs.

Is this news or just propaganda?

Rob, BN2 says...
12:41pm Mon 9 Jul 07

Brad - imagine a scenario where you lose your income, it costs thousands to sell, and new legislation or taxation precludes letting your property out. Still think home ownership equates to security? I'm a landlord and my tenant loves me because I maintain and insure her home and her rent is £100 less a month than my mortgage repayments. Be careful what you wish for people!

paul, brighton says...
12:58pm Mon 9 Jul 07

[I'm a landlord and my tenant loves me because I maintain and insure her home and her rent is £100 less a month than my mortgage repayments. Be careful what you wish for people!
quote


I wish my landlord cared like Rob, and actually looked after the house they own instead of letting it rot.

Brad, Brighton says...
1:09pm Mon 9 Jul 07

Rob, I think you are one of the few that makes less in rent than mortgage repayments.

Stu - legislation against rent rises can be quite easy. Type in rent control on Wikipedia. The pro's outway the cons of this scheme.

This has got to be the way forward. I think it will be. I don't buy to let will be around for much longer. Based on my gut feeling anyway.

gary, hove says...
1:34pm Mon 9 Jul 07

This article would be hilarious if it wasnt so depressing!.... the reason why so many FTB's can't rush out and snap up these £150K 'Bargains' is that they are only bargains if you have the money! I dont know of many lunatic mortgage providers who would be prepared to lend a sum in excess 5x salary in order for an average wage earner to cash in on these fantastic opportunities!..what
s that down the back of my sofa? ...oh it must be 150K!

JG, Hove says...
1:40pm Mon 9 Jul 07

Brad wrote:
Rob, I think you are one of the few that makes less in rent than mortgage repayments. Stu - legislation against rent rises can be quite easy. Type in rent control on Wikipedia. The pro\'s outway the cons of this scheme. This has got to be the way forward. I think it will be. I don\'t buy to let will be around for much longer. Based on my gut feeling anyway.
Well lets all go with Brad's 'gut feeling'

Many buy to let Landlords who have come into the market it the last (approx) 2 years or so are finding their rent only just covers or does not cover the mortgage. They are therefore banking on capital growth and are therefore having to be looking at long term investments, not the quick earners of the last decade. We are talking upwards of 15 years at least. No matter wether we have a drop in prices or even if you believe there will be a crash, property has always increased in value over these kind of timeframes.

Rent increases are not so easy to beat for a tenant, unless they have a protected tenancy. (very rare) If you won't agree to the proposed increase and if the market allows, the Landlord will make his excuses, give you notice to vacate and remarket the property at the higher rate. Its pretty straight forward and there are no simple answers as people here suggest. If all Landlords are pushed to increase rents by being penalised in taxes or other ways, all rents will rise and if you don't want to pay it, someone else will.

Rob sounds like a good Landlord who looks after his tenants and also has an asset for his retirement. Why should be be penalised because everyone wants to be a homeowner. Not everyone can be a homeowner in the same way as we can't all go to University or all be self employed. It just wouldn't work

Stu, Brighton says...
2:18pm Mon 9 Jul 07

Thanks, Brad. That site illustrates what's wrong with rent controls and why they don't work, too: reasons used to teach the economics of supply and demand and what happens by artificially fixing prices - or subsidising. If the l/lord loses out through rent control he/she will no longer spend on maintenance or sell out to orgs that really don't care. I think we all know a couple of "infamous" landlords - do you want them owning your home? The building of new developments are the only way of securing a percentage of "affordable" homes.

Stu, Brighton says...
2:19pm Mon 9 Jul 07

Thanks, Brad. That site illustrates what's wrong with rent controls and why they don't work, too: reasons used to teach the economics of supply and demand and what happens by artificially fixing prices - or subsidising. If the l/lord loses out through rent control he/she will no longer spend on maintenance or sell out to orgs that really don't care. I think we all know a couple of "infamous" landlords - do you want them owning your home? The building of new developments are the only way of securing a percentage of "affordable" homes.

Brad, Brighton says...
2:23pm Mon 9 Jul 07

Hello Stu, this is a complex debate with no easy answers. One thing I could say regarding your concerns of maintenance is that, rented properties must be inspected and deemed habitable before tenants move in. Yearly inspections should be made to make sure things are safe.

But someone mentions not everyone can be a homeowner. Why is that? I'm no expert on economics, but would be interested to know what not everyone could be a homeowner.

Tim, from a far says...
2:31pm Mon 9 Jul 07

One would hope that the dimishing returns and the higher cost of borrowing will stop multiple home ownership and cool the buy to let boom. That, in turn, will allow more properties to be available to those who wish to buy to live in their own home. Don't see many buy-to-let landlords buying up empty properties in Molescomb or Whitehawk for social letting, it's ALL about profit.

Brian, Brighton says...
2:37pm Mon 9 Jul 07

Brad wrote:
It is a bit more complex than that George. Everyone needs a home and the security ownership can give. Do you really want a return to the landowners and serfs? Why is their so much greed in this country nowadays? It is not necessary. There are lots of ways of provision for retirement without exploiting others. Multiple property owners wouldn\'t like it if they were in the same position.

One thing though, sooner or later the government will realise that this is an untouched cash cow and tax the death out of the buy to let brigade. Sooner that happens, the better (oh and I am a homeowner, not sure of a few bob, before I am attacked and told I\'m jealous).
Landowners and serfs!
We place too much on Property being an Investment, instead of enjoying life. A house might be worth x amount of £s but assets are only realised on selling, then you have to buy somewhere else to live! or unless you are dead.

Stu, Brighton says...
3:09pm Mon 9 Jul 07

There are no easy answers. If there aren't enough homes being built demand outsrips supply, prices rise. Provision needs to be government led. and, Tim, there are many l/lords in Moulescombe and Whitehawk raking it in from low purchase prices and guaranteed housing benefit. All business or investment is about profit or returns....welcome to a FREE market economy where you get to CHOSE what you want to do!

ComradeK, Brighton says...
4:01pm Mon 9 Jul 07

There is no choice in a free market economy. Unless you have money. I want to buy a home, but I can't. Where's the choice and fairness in that? A home isn't a luxury... it's a necessity!

Capitalism is based soley on making money. But when basic needs such as shelter, warmth, water and food are turned into profit making commodities the poorest lose out. They are denied CHOICE and in the end more and more taxpayers' money is used to subsidies the rich property owners through the benefit system.

There is no point tinkering with capitalism because you will never have EQUALITY under it. Unfairness is one of the principles of capitalism and people have just got to realise that we need to get rid of it if ANY of our problems are to be solved.

Belther, Hove says...
4:38pm Mon 9 Jul 07

Hello ComradeK - some interesting points there. How would you go about improving things? It is difficult to not be a capitalist in theis capitalist society. Too much emphasis is put on greed and no one wants to work for it any more. We are too soft. We must make sure we never go back a landowner, class based system.

Stu, Brighton says...
4:52pm Mon 9 Jul 07

ComradeK wrote:
There is no choice in a free market economy. Unless you have money. I want to buy a home, but I can't. Where's the choice and fairness in that? A home isn't a luxury... it's a necessity! Capitalism is based soley on making money. But when basic needs such as shelter, warmth, water and food are turned into profit making commodities the poorest lose out. They are denied CHOICE and in the end more and more taxpayers' money is used to subsidies the rich property owners through the benefit system. There is no point tinkering with capitalism because you will never have EQUALITY under it. Unfairness is one of the principles of capitalism and people have just got to realise that we need to get rid of it if ANY of our problems are to be solved.
Rich v. Poor? What about those wanting to just provide for theirs/their kids future in a responsible, hard working way? Should we all hand it over to you? Generating money to pay for your list above (plus taxes) all by yourself isn't a hate crime like your diatribe suggests. I do agree a home IS a need, but actually owning it isn't - rich or poor. Owning it is how you chose to spend you're money.

ComradeK, Brighton says...
5:24pm Mon 9 Jul 07

Two points...

1) All property is theft... who was here first to claim it as theirs? When they die, who does it belong to?

2) Providing for YOUR kids alone is selfish primative and is part of a social system that pre-dates history invitiably resulting in humans fighting each other for resources, land, power, etc (sound familiar). There is enough money and resources in the world for EVERYONE to have a decent standard of living. We should be providing a future for EVERYONE. Home-ownership has become almost a necessity for many because pensions are being taken away from us by the rich as global capitalism threatens their wealth and power. All housing should be publically-owned (with each occupant still being able to do what they want with their homes, ie. decoration, stonecladding, extensions, etc, unlike the current absurd controls on private renting (I'm not even allowed to hang a picture!)) with controlled rents paid instead of a life time of mortgages. That would sort out the housing crisis wouldn't it?

And can I just say... I'm not an advocate of what precisely happened in Russia or Cuba (which is certainly not the Socialism I'm arguing for), but because of the planned economy and public-ownership in these countries there was housing for everyone, free healthcare not under threat of cuts, full employment and free education at all levels.

What they take/took for granted... we're still fighting for in Britain, the fourth richest country in the world (apparently).

Tom, Worthing says...
5:25pm Mon 9 Jul 07

Some good points raised Stu. I think more could be done to get people on property ladder. Shared ownership is a step in right direction. But for young people, sacrifice is needed to afford somewhere. I think young people are unlucky with the timing of the latest property boom. But history has taught us with every boom comes a bust.

But the thing is Stu, and I may be wrong, but isn't a mortgage payment normally less than a monthly rental payment on a property?

Jeff, Brighton says...
5:27pm Mon 9 Jul 07

But comradek, how would you advocate who gets what property? Say I want a big detached house, would I get it or would I get small flat? On your theory mate, how would the state allocate who gets which house? I'm not having a dig, I'm genuinely interested in different opinions on this and politics is not one of my strong points.

Regards

Jeff

ComradeK, Brighton says...
5:36pm Mon 9 Jul 07

Answer for Jeff: Allocation based on need.

If you're on your own and need to get to work, in Amex for example, you'd probably get a one bed flat in Kemp Town or Hanover.

A two parent family with five children will get a big house, one bedroom per child, etc...

At the moment we have individuals owning seven or eight five bed mansions and working class families in bedsits. Socialism is about providing enough for everyone. It is simply common sense.

Barry, Brighton says...
5:42pm Mon 9 Jul 07

Comradek, I can't see that going down too well. I worked very hard at school and college to get my job. I saved for many and sacrificed holidays, cars, going out for years to be able to afford a nice detached house with a garden. Now, you saying I should lose this so someone who may not have worked a day in their life can move in, in my place. How is that fair?

Cpt Sensible, Brighton says...
5:44pm Mon 9 Jul 07

Barry wrote:
Comradek, I can't see that going down too well. I worked very hard at school and college to get my job. I saved for many and sacrificed holidays, cars, going out for years to be able to afford a nice detached house with a garden. Now, you saying I should lose this so someone who may not have worked a day in their life can move in, in my place. How is that fair?
Its not. Thats why this simplistic idea would never happen without a bloody revolution.

Is that what you want?


Norman Tebbit, says...
5:52pm Mon 9 Jul 07

ComradeK wrote:
Answer for Jeff: Allocation based on need. If you're on your own and need to get to work, in Amex for example, you'd probably get a one bed flat in Kemp Town or Hanover. A two parent family with five children will get a big house, one bedroom per child, etc... At the moment we have individuals owning seven or eight five bed mansions and working class families in bedsits. Socialism is about providing enough for everyone. It is simply common sense.
Work harder

ETOPS773 - HPC, Worthing says...
7:05pm Mon 9 Jul 07

How reckless. Why are high house prices seen as a good thing? Surely if affordability is problematic and dwindling then there is a problem and you should wait until the problem is resolved. A House Price Crash will resolve the problem.

Wake up people, the housing ladder is broken.

Please people don't feed the monster that has lead to such a decline in our social and economic climate. Sounds like desperate estate agent talk to me.



Eddy, Hove says...
7:37pm Mon 9 Jul 07

If anyone buys a house based on the article above, more fool them. Its another story to try and panic people into buying put in by vested interests

Roman AbramoRICH, says...
7:56pm Mon 9 Jul 07

Helloski

Houses very very cheap in UK. Football good to.

You sell I buy.

www.SquatNow.com, Luton, UK says...
9:33pm Mon 9 Jul 07

How stupid and financially suicidal do you have to buy now? Were weeks away from the housing crash and people are still claiming prices are going up! Are articles like this even LEGAL?

Nobby, Brighton says...
9:54pm Mon 9 Jul 07

If I buy now and market crashes, then as long as I don't need to sell I'll be ok. I have a recession proof job (Immigration Officer) so what is wrong with me buying now?

Valerie Paynter, Hove says...
11:08pm Mon 9 Jul 07

It is irresponsible to give property peddlers this kind of platform. When sales are going well you don't need to shriek "Hurry, hurry, hurry, when they're gone they're gone!"

Signs of a cooling market and reasons to fear interest rate rises and market turndown have motivated this sales patter. Add to that the consequences of the flood now coming to us as a promised 10% rise in food prices and you would be better advised to remember the old adage that "Cash is King" when the boom time ends. Buyers beware

Kevin, Hove says...
11:52pm Mon 9 Jul 07

Vested Interests! The boom times will end and soon enough. The buy-to-let pyramid selling scheme is going to lead a lot of misinformed folk to the wall. All this nonsense about "lack of supply" just does not wash with me either. There's enough to go around when people only require a property to live in not some "investment portfolio" that neccesitates buying a load - with artifically "cheap" money. The crash is coming!!

Largely, Brighton says...
12:04am Tue 10 Jul 07

With the 4 recent IR rises, prices should be falling soon. I'll be snapping up a place in Brighton in a few years time cheaper than any of these second options are today. I remember how Brighton was decimated in the last crash.

andy, Lewes says...
7:54am Tue 10 Jul 07

I bought a studio flat in Brighton in 1994 for £25k. A few years earlier it was 'worth' £80k.
Be warned, history repeats itself, and markets are cyclical.

jayne, hove says...
7:57pm Tue 10 Jul 07

Today it is a very different market to the 80s especailly in the most popular place to live in Britain(Brighton) with its limited housing stock, prices will not fall.

As for landlords they already pay heftily in taxes the same as any other business to be exact, and this is put on top of personal taxes, so most of it is paid at 40%. If it was not for this investment Brighton would be a s**t hole and you would not want to buy here anyway so just rent like a lot of other people do, especially in Europe. Most landlords are older who have worked hard to make the investment, this is what the young should do and stop expecting everything handed on a plate whilst you go out and booze your lives away. Try saving and working hard and the rewards will follow in good time.

Eddy, Hove says...
8:32pm Tue 10 Jul 07

Yes, don't you realise this time it is different. Prices always go up. Boom and bust never happens. No one would live in Brighton if it wasn't for landlords.

Gene, Hove says...
2:06pm Wed 11 Jul 07

The current housing market is so different to what it was in the 80s. People keep talking of a bust, I just cannot see it happening. There might be a slight dip like there was in the late 90s but it will recover and go up.

Why isn't it like the 80s? Well, interest rates for one are still very low if you compare them to that decade. Also, supply and demand. Simple fact, there are not enough houses being built. Take that with increased immigration and we are having a supply issue. Banks are still lending money and being more 'inventive' on how much money they will lend out and will also lend out for longer periods of times.

And brighton, well, it's probably the coolest city in England and one people want to live in. With that sort of demand prices will just keep on growing, they will prob slow down like the rest of the country but I cant see them dropping.

emanuelle pride - ridout, surrey says...
11:16pm Sat 11 Aug 07

why does no one remember the good ol estate agent in this? we bought our first house back in the 90s or 68 ,000. a 3 bed semi in Surrey. modernised it and sold for 130,000, bought another to do the same, 4 bed det bungalow 4 years later. sold 3 years later for 232,000. all to get our mortgage down. but meanwhile, the property keeps booming and the equity gets smaller, and profit less. materials get dearer and so does cost of living and council tax. but behind all this, I have communicated with estate agents all over on looking up property and the regions prices, watching the property creep up in some places and shoot through the roof in others. its not originally location,its not about redeveloping areas alone. its about the estate agents big fat commission, who governs them, no one. we pay for what ever it is priced at, if they spread the word on a place being hot property, we all believe them. its caused so much confusion and money lost to people who believe what they are buying is so exclusive in its area , for eg. Cornwall went up so high, the agents believed since working from home has come more possible via computer business that commuting is not such a necessary so would attract Londoners. I must say that so many have come back that I know, because reality is, its a real culture shock there, maybe beautiful but its a community of VERY local people, and it affects there children who have worked farms, and the tourist trade and all local jobs are not of a good pay,buying second homes there is a bad investment as the young local labourers cannot afford a property, as they have been up against prices aimed towards the second home buyers market. so whos going to rewire, plumb, etc the second home buyers property if there is no locals to do it? reports are that alot of second home buyers do not keep up properties maintence as should do, and only let so many months of the year anyway, so its left to deteriorate over the years. this is a hazard to any remaining local neighbours homes they encourage household crimes, and are a fire hazard. the agents continue to push up the prices at the price they choose, who says any house is any price they say, we,ve watched them jump the prices to suit their pockets, if they get all this commission then its not hard to see that as no one is out their controlling their valuations, and it has long spiralled out of control. so blame the estate agents, its them that determine the valuation of a property, they have so got it wrong for the economy.

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