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:
- University of Brighton – with campuses spread across the city (Moulsecoomb, City, Falmer)
- University of Sussex – based just outside Brighton in Falmer
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:
- Digital and creative industries (sometimes referred to as “Silicon Beach”)
- Hospitality and tourism
- Healthcare and education
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:
- Direct trains to London Victoria and London Bridge (around 1 hour)
- A23 and A27 road links to London, Gatwick, and the South East
- Brighton Station is centrally located, serving professionals and students alike
- Regular buses and cycle infrastructure make the city easy to navigate
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:
- There must be less than 10% of properties within 50m are already in use as HMOs
- There must also be fewer than 20% of dwellings in the wider neighbourhood area are already in use as HMOs
- The proposal should not result in a non-HMO dwelling sandwiched between two HMOs. This applies where the three houses are immediately adjacent to each other – sometimes referred to as ‘in a continuous frontage’
- The proposal should not lead to a continuous frontage of three or more HMOs immediately adjacent to each other
- The internal and private outdoor space standards provided comply with Policy DM1 Housing Quality, Choice and Mix
- Communal living space, cooking and bathroom facilities should be appropriate in size to the expected number of occupants.
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:
- Mandatory HMO Licence: Required for any property with 5 or more occupants forming more than one household.
- Additional Licensing Scheme: Applies to smaller HMOs (3+ tenants) in many parts of the city.
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:
- Kemptown
- Moulsecoomb and Bevendean
- Queens Park
- Whitehawk and Marina
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:
- The type of tenancy your property has and the number of occupants
- If you’re making a new application or re-licensing a property under the Mandatory HMO licence scheme
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% to 10%, depending on location, tenant profile, and property condition. While yields may be slightly lower than other cities, capital growth prospects in Brighton remain strong due to its constrained housing supply and desirability.
Professional HMOs with en-suites and high-spec finishes often command higher rents and attract more stable tenants compared to basic student setups.
Best Areas to Invest In
Moulsecoomb & Bevendean
Best for: Student HMOs
Close to both universities, with good bus routes and relatively affordable housing stock. Always popular with undergrads.
Hanover & Elm Grove
Best for: Young professionals & students
Trendy, central, and close to Brighton Station and Kemptown. High demand, but competitive.
Hollingdean & Fiveways
Best for: Mixed professional and student HMOs
Slightly quieter than central Brighton, but still accessible. More family housing stock suitable for conversion.
Kemptown
Best for: Professional HMOs
Close to the hospital, seafront, and city centre. High property values, but strong rental demand and yields.
Finding the Best HMO Investment Property in Brighton
Before buying, you should:
- Check if the property is in an Article 4 area using the council HMO map
- Review local HMO concentration data
- Understand expected rental income vs purchase/refurbishment costs
- Confirm what kind of licence would be required
We recommend using HMO Checker, a tool that lets you enter a specific property address and get an overview of planning risks, density stats, estimated yields, and approval likelihood – all without needing to contact the council directly.
New users get 2 free credits to try it out.
Final Takeaways from HMO Investment in Brighton
Brighton offers an exciting, albeit tightly regulated, HMO investment landscape.
Key takeaways:
- High rental demand from students and professionals
- Article 4 restricts supply and protects value of compliant HMOs
- Planning approvals are possible, but need careful navigation
- Mandatory and additional licensing schemes apply citywide
- Capital appreciation potential remains strong in popular areas
If you’re looking to invest in HMOs in Brighton, due diligence is critical – but the rewards can be substantial for those who understand the market and local rules.
