Brighton: Our Complete HMO Investment Guide
Brighton is a popular and diverse city on the South Coast of England known for its creative scene, universities and nightlife. With a population of over 290,000, it combines the appeal of living in the city with coastal living. These qualities make Brighton a popular destination for HMO (House in Multiple Occupation) investment. Why invest in HMOs in Brighton? Brighton offers strong rental demand driven by a mix of students, young professionals, and workers in sectors like digital media, hospitality, and education. It’s home to the University of Brighton and University of Sussex, drawing in thousands of students every year. The city is famous for having a fairly progressive outlook and strong economic sectors. This means it also attract graduates and professionals who opt to stay post-study, driving continued demand for affordable shared housing. Brighton is also subject to Article 4 Direction regulations, meaning planning permission is required for converting single-family homes into small HMOs. While this creates extra administrative steps, it also limits new supply which helps to protect the value of existing HMOs. Brighton Universities There are two universities which play a major role in Brighton’s rental demand in the city. These are: Together, these universities support a student population of around 30,000. Lots of students prefer HMOs because of their affordability and more social atmosphere. The student housing season typically starts early in the year (January–February), with a second wave in summer as international students and late applicants search for rooms. Brighton Economic Activity Brighton boasts a thriving economy built on: Major employers include Brighton & Sussex University Hospitals NHS Trust, American Express, and several tech firms. The city’s creative and digital scene supports a large number of freelancers and young professionals, many of whom seek flexible, shared housing in central areas. Transport Links Brighton’s excellent transport infrastructure supports HMO demand by ensuring ease of commuting: These links enhance Brighton’s appeal for both commuting professionals and international students.. Read more about Bournemouth transport links > Article 4 in Brighton There are around 4,000 licensed HMOs in Brighton & Hove and they make an important contribution to the housing offer. However, the local council implemented an Article 4 direction in 2010 that applies to a wide range of areas within the city. This means that planning permission is required to convert a family home (Use Class C3) into a small HMO (Use Class C4), even if the property houses just 3 or more unrelated tenants. Above: Brighton Article 4 Map The Council assesses HMO planning applications based on a number of criteria, including the following: Brighton & Hove City Council provides lots of clear and useful resources on the council website in order to support those interested in investing in HMOs in the area. For example, they have an HMO concentration map that they update annually in October. It shows the number of properties recorded as houses in multiple occupation. It also shows those occupied by full-time students sharing and claiming a council tax discount. It can help you to understand HMO concentrations across a cluster of contiguous (immediately adjoining) areas. It does not include information about HMO licensing, planning permissions or planning enforcement cases. In addition, where no more than 10% of dwellings in the area within 50 metres are permitted, tools like HMO Checker can be useful. Using both the interactive map on the Brighton & Hove Council website and HMO Checker, you can easily review HMO density for your elected investment property against this criteria, as in the screenshot below. HMO Licensing in Brighton In Brighton, HMO licensing requirements follow national rules, plus an Additional Licensing Scheme covering smaller HMOs: The Additional Licensing Scheme was recently introduced across Brighton & Hove from 1 July 2024. The city-wide scheme is for HMOs of 2 or more storeys with 3 or 4 occupiers. There was a previous city-wide Additional HMO Licensing Scheme that ended in 2023. Below is a map from the Brighton & Hove council website illustrating the areas in which licensing is required: More information on the Additional Licensing Scheme can be found on the Brighton & Hove council website. It’s also worth nothing that there is a Selective Licensing Scheme in the following areas: This might apply to private rentals that don’t fall into the Mandatory or Additional Licensing Schemes that are situated in these areas. Licensing Fees The Brighton & Hove Council website states that they charge different fees for licensing applications based on the following criteria: They have an online HMO form to help calculate specific fees based on the HMO you are proposing. However, we have also provided tables from their website on fees based on occupancy and tenancy agreements. These are up to date as of 24th July 2025. Additional Licence Fees for 3-4 Tenancies Type of fee Cost Standard initial fee £1,083 Single discount £1,006 Double discount £929 Late fee £1,147 Additional Licence Fees for 3-4 Occupants on Single Tenancy Type of fee Cost Standard initial fee £849 Single discount £772 Double discount £695 Late fee £956 Mandatory Licence Fees for 5+ Tenancies Type of fee 5 tenancies 6 to 8 tenancies 9 to 11 tenancies 12 to 14 tenancies Standard initial fee £1,093 £1,263 £1,412 £1,560 Single discount £1,016 £1,186 £1,334 £1,483 Double discount £939 £1,109 £1,257 £1,405 Late fee £1,157 £1,337 £1,486 £1,645 Standard re-license fee £891 £913 £923 £945 Single discount £814 £836 £846 £867 Double discount £737 £759 £769 £791 Late re-license fee £945 £966 £977 £998 Additional Licence Fees for 5+ Occupants on Single Tenancy Type of fee 5 occupants 6 to 8 occupants 9 to 11 occupants 12 to 14 occupants Standard initial fee £871 £891 £913 £934 Single discount £794 £814 £836 £856 Double discount £716 £737 £759 £779 Late fee £987 £1,009 £1,029 £1,051 Standard re-license fee £711 £721 £733 £743 Single discount £634 £644 £656 £666 Double discount £557 £567 £578 £589 Late re-license fee £807 £817 £828 £839 Brighton HMO Rental Yields Brighton’s HMO yields typically range from 6%