Published by Ryan Windsor
on 07/15/2025
Looking to grow your portfolio beyond London? The South Coast cities of Brighton, Bournemouth, and Portsmouth are quickly becoming standout destinations for forward-thinking investors like you. These vibrant, regeneration-driven hubs combine lower entry costs, strong rental demand, and year-round lifestyle appeal, making them ideal for HMO, co-living, and serviced accommodation strategies.
Brighton’s buzzing economy, creative energy, and large population of students and professionals make it a consistent performer with high demand across multiple rental types. Bournemouth, with its golden beaches and growing university presence, is perfectly positioned for student lets, holiday homes, and high-quality HMO. Meanwhile, Portsmouth is undergoing rapid transformation, driven by tech growth, waterfront redevelopment, and the ongoing expansion of the university.
If you’re seeking strong yields and long-term resilience, these three cities form a powerful investment triangle. With the right design and planning partner, you can unlock hidden potential in underused properties, reduce risk, and build future-proof returns across the South Coast.
Why consider property investment in Brighton, Bournemouth, and Portsmouth?
All these cities on the South Coast have a distinct attraction to property investors. Be it a rich student and professional population, regeneration schemes, and lifestyle-led demand, these neighborhoods are grabbing the interest of forward-looking landlords and developers.
Investing in South Coast Property Markets
What makes these South Coast cities attractive to investors?
Strengths
- Lower entry costs than London
The prices of properties in Brighton, Portsmouth, and even Bournemouth are far cheaper than those in London, and investing in these areas enables them to earn higher yields and also reduces the degree of diversification.
- High rental demand
As the population of students, young professionals, and retirees has expanded, these cities need more HMO, co-living, and later-living schemes.
- Lifestyle appeal
These cities offer coastal lifestyles, thriving cultural life, and robust transportation performance that continue to attract renters and purchasers after the pandemic, as the trend of remote and hybrid work remains.
- Regeneration initiatives
The coastal areas are changing due to investment in infrastructure and in the development of public spaces, increasing asset value in the long term.
Explore more about the best places to invest in UK property.
What challenges should investors be aware of?
Weaknesses
- Seasonal rental cycles
Holiday lets, student markets, and other markets in the city, such as Bournemouth and Brighton, may cause seasonal changes that can affect cash flow and occupancy rates.
- Demographic limitations
These are smaller cities than London or Birmingham they grow. There is a ceiling to the size of some types of tenants or property types.
- Planning constraints
There can also be conservation areas and coastal planning implications on redevelopment or licensing in HMO. It is then that a proactive architectural partner is needed.
Need help navigating planning in complex zones? Book a strategy call with our team.
What future opportunities do South Coast cities offer property investors?
Opportunities
- HMO and co-living conversions
The prospects are growing of re-purposing under-utilised housing stock (including, e.g., guesthouses, bed and breakfasts, and old-fashioned households) and converting it into very highly specified HMO and co-living accommodation to suit the needs of modern tenants.
- Coastal regeneration
The renewal plans of town centers, the upgraded transport connections, as well as the smart city development along the South Coast, will pay off for the investors who will enter the race early.
- Later-living and PRS schemes
The popularity of the South Coast among retirees creates the opportunity for later-living design, and the growing population of modern young adults makes the build-to-rent and PRS developments appealing.
Planning a build and want it to stand the test of time? We’re here to guide you every step of the way, from your first idea to the final brick.
Are there any risks to watch for in South Coast property markets?
Threats
- Climate and flood risk
Coastal erosion and rising sea levels are a worrying matter. Knowledge of the risks and on-site mitigation measures is strategic in long-term security.
- Economic dependency
Such regions also tend to be very dependent on tourism, the government, or hospitality services, thus being exposed to the negative disruptions of one of these sectors.
The management of these risks requires a partner that has expertise in the local market as well as building performance.
Spotlight on Investment: Brighton, Bournemouth, and Portsmouth
Is Brighton a good place for property investment?
Brighton is an economically diverse and stable high-demand market. At entry prices which are higher than those of Bournemouth or Portsmouth, yield is still good, especially in the centralized HMO, the serviced accommodation, as well as student housing.
Find investment properties in Brighton that would be well-located both concerning getting to work and leisure services.
Is Bournemouth a smart location for buy-to-let?
Bournemouth offers excellent potential for holiday lets, young professionals, and student tenants. The university sector, healthcare employment, and beach lifestyle create a steady tenant base. Look for investment properties in Bournemouth close to the town centre, universities, or regeneration zones.
Learn more about property investment in Bournemouth.
What makes Portsmouth attractive to investors?
Portsmouth has a lot of potential in its property market with a large university, a developing technology industry, and ferry-port connections. HMO and family houses can have good yields, which investors can find in Southsea or those near the centre of the city.
Explore our Portsmouth property investment tips.
How HMO Architects helps investors maximise South Coast opportunities
HMO Architects, we specialise in helping investors unlock the full value of South Coast assets by:
- Identifying properties with potential for conversion into HMO, serviced accommodation, or co-living schemes.
- Optimising designs to maximize yields while maintaining planning and regulatory compliance.
- Navigating coastal planning rules and flood risks to future-proof investments.
- Managing the process end-to-end—from feasibility studies to planning applications to build-ready technical packs.
We understand the unique challenges and rewards of investing in coastal locations, and we’re here to help you design for lasting returns.
South Coast Investment Summed Up
Brighton, Bournemouth, and Portsmouth are all attributed to a stirring combination of demand, lifestyle, and regeneration-induced growth, which means that they are all hot destinations to invest in property. There is always an opportunity, whether it is HMO and others, or later living conversion. However, the presence of these cities is also associated with the challenges of planning and the peculiarities of the market that require professional guidance.
Comparing South Coast Investment Opportunities
| City | Key Tenant Groups | Average Entry Cost | Typical Yield | Best Opportunities | Watch-Outs |
| Brighton | Students, young professionals, commuters | High | Moderate to High | Student HMO, co-living spaces, and serviced accommodation | High entry cost, stricter planning constraints |
| Bournemouth | Students, retirees, holidaymakers | Medium | High | Holiday lets, multi-lets, guesthouse conversions | Seasonal demand, licensing complexities |
| Portsmouth | Students, families, professionals | Low to Medium | Moderate to High | Family homes, student HMO, PRS blocks | Overreliance on the public sector & local industries |
Ready to invest on the South Coast?
Your next project could be the one that transforms your portfolio. If you’re considering a guesthouse-to-HMO conversion in Brighton, a co-living scheme in Bournemouth, or PRS blocks in Portsmouth, let’s talk. We offer two tailored ways to get started:
Book a Strategy Call
For investors planning their next development move and seeking high-level advice on-site strategy, design, or location suitability. Book a Strategy Call
Request a Quote & Intro Call
Already have a property in mind? Let’s discuss your project’s scope and how we can support you with drawings, planning, or full-service delivery. Get a Quote
Published by Ryan Windsor
on 07/15/2025
Ryan Windsor, Development Director and co-founder of HMO Architect, brings over 15 years of specialised experience in HMO development to the table. Having consulted on nearly 2,200 projects, Ryan is a highly seasoned HMO landlord with a vast and influential property network. He began his real estate journey at just 17, rapidly amassing a wealth of experience that sets him apart in the industry. Beyond his professional successes, Ryan is passionately dedicated to giving back, leading numerous charitable initiatives that make a meaningful impact on local communities.
