Owners who sell their beach hut could have to hand over 10 per cent of the sale price to the council.

Brighton and Hove City Council wants to introduce a 10 per cent transfer fee next spring under new changes to Hove beach hut licences.

An administration fee of £82 is currently charged for a change of ownership.

The council said there are 459 beach huts on Hove seafront that are privately owned by residents and that over the last ten years, the value of a beach hut on the seafront has risen “well above inflation” and more in line with the increases in the local property market.

Huts for sale can regularly range in price between £25,000 to £35,000, the council said.

A council spokesman said: “Other neighbouring authorities charge a transfer fee which is linked to the sale price of the beach hut including Adur and Worthing Councils. Adur charges a 10 per cent transfer fee as does Rother District.

“Many coastal councils also charge more for the annual licence fee. Worthing and Adur charge between £612-£810 per annum. Rother District Council charges £650 and Bournemouth, Christchurch and Poole Council charges £1,090.”

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The introduction of the transfer fee is being proposed in lieu of increasing the annual licence fee charge and a consultation has now begun on the proposal.

The licence fee for 2023 to 2024 is £503.60 including VAT.

Councillor Alan Robins, chairman of the culture, heritage, sport, tourism and economic development committee, said: “We know beach hut owners take great pride in maintaining the huts all year round and they do a fantastic job. The proposed changes will allow us to keep the yearly licence fee payment the same and puts us in line with other local authorities along the coast.

“Currently the council is not benefiting in any way from the profit made on the sale of a beach hut when most of the value is due to its prime position on the seafront.

“If the transfer fee is introduced, then the additional revenue can be reinvested back into seafront services such as our lifeguards.

“It’s an extremely challenging time for local government finances, and the potential income will go towards providing essential life-saving services while offering council land for hut owners to enjoy the seafront.”

A report will go to the culture, heritage, sport, tourism and economic development committee in November with an update on the consultation and recommendations.

New licences would take effect from April 1,2024.