Beach Hut Market ??

The Maharajah of Sydney · Jan 11, 2016

Seeking some local knowledge of various aspects of the Beach Hut market along Hove seafront.
My sister is toying with the idea buying one after anecdotally hearing that they sell for around £15 - 20k and can be rented out up to £350 a week in peak season.
That rental figure sounds optimistically high but of more importance would be what would a yearly rental on a Hut realistically amount to ?
Historically how have the capital gains been and would I be right in assuming that no bank or financial institution would lend against a purchase OR possibly would if the deposit was set high enough and
funds were available at interest rates closer to personal loans rather than mortgage rates ?
Any information forthcoming would be thoroughly appreciated - thank you.

Beach Hut · Jan 11, 2016

You are more than welcome to my market, come on down......

Westdene Seagull · Jan 11, 2016

I'd be utterly amazed if your sister could find a bank willing to lend money for a beach hut. Equally that she could rent it out for £350 a week regularly enough to make any sort of return - and that's assuming you are allowed to do that - I'm pretty sure the council don't allow that. An utterly bonkers investment idea IMHO.

knocky1 · Jan 12, 2016

Mum bought one for £2000 in 2004. Bottom of the Drive, prime location. Left it to me and now worth £12,000 to £15,000. No need to consider CGT, as yet, as within CGT allowance. Would expect to not ever have to pay CGT on it, as it would be a voluntary payment.
The yearly rent also has a business rates supplement. They total in the region of £400 pa. last year used the hut about twice or £200 a visit!
You rent the piece of Tarmac underneath and own the beach hut yourself.
People do rent them out and it doesn't seem to be a problem. Mean to look into it ourselves but too lazy. The main issue would be the immediate neighbours. We are at the end of a line by steps and hardly ever see neighbouring huts occupied. Perfect but if you rent out next to some sweet, old lady who is there every day to enjoy the peace and quiet you will have trouble as she can complain to the Seafront Officer.
The rental season must be short. Possibly only summer holidays and dependent on weather.
So unless your sister wants to maintain an expensive shed open to the elements and pay a high rent for her own enjoyment rather than business, I would say NO.

knocky1 · Jan 12, 2016

I forgot insurance. Around £300? I don't pay it but if hut blows over, vandalised or set on fire, £3000 rebuild costs.
As Westdene said unlikely to get a mortgage not even from an Icelandic Bank back in early 2006. May get a personal loan depending on financial position.

Bozza · Jan 12, 2016

I'm curious. Some huts seem to have power. How do they do that?

maltaseagull · Jan 12, 2016

Bozza said:
I'm curious. Some huts seem to have power. How do they do that?

The force is with them?

Goldstone1976 · Jan 12, 2016

Bozza said:
I'm curious. Some huts seem to have power. How do they do that?

The ones I've seen with power (on the Norfolk coast where a friend *ahem* has three) have a little portable generator.

On topic - wouldn't have thought it was a sensible investment, tbh. EDIT: For income purposes, I mean. As a capital investment - that's a different story, depending on location. Don't know anything about values in Hove, I'm afraid.

Return of the Rev · Jan 12, 2016

Goldstone1976 said:
The ones I've seen with power (on the Norfolk coast where a friend *ahem* has three) have a little portable generator.

On topic - wouldn't have thought it was a sensible investment, tbh.

Not with the possibility of whu and spurs visits next season,might sell the fishing boat as well

Tim Over Whelmed · Jan 12, 2016

I have one (FOR SALE) down at Rustington (Sea Lane Estate) they go from £17,000 upwards with private parking and lovely frilly flags inside!

The Maharajah of Sydney · Jan 12, 2016

knocky1 said:
Mum bought one for £2000 in 2004. Bottom of the Drive, prime location. Left it to me and now worth £12,000 to £15,000. No need to consider CGT, as yet, as within CGT allowance. Would expect to not ever have to pay CGT on it, as it would be a voluntary payment.
The yearly rent also has a business rates supplement. They total in the region of £400 pa. last year used the hut about twice or £200 a visit!
You rent the piece of Tarmac underneath and own the beach hut yourself.
People do rent them out and it doesn't seem to be a problem. Mean to look into it ourselves but too lazy. The main issue would be the immediate neighbours. We are at the end of a line by steps and hardly ever see neighbouring huts occupied. Perfect but if you rent out next to some sweet, old lady who is there every day to enjoy the peace and quiet you will have trouble as she can complain to the Seafront Officer.
The rental season must be short. Possibly only summer holidays and dependent on weather.
So unless your sister wants to maintain an expensive shed open to the elements and pay a high rent for her own enjoyment rather than business, I would say NO.

Cheers Knocky, that's good info.
That's an exceptional 600-750% capital gain in the space of only 12 years. Has there been a major refurbishment done on it ?
Any further thoughts as to what sort of demand there would be for securing a yearly lease and how much you could get for it ?

knocky1 · Jan 12, 2016

The Maharajah of Sydney said:
Cheers Knocky, that's good info.
That's an exceptional 600-750% capital gain in the space of only 12 years. Has there been a major refurbishment done on it ?
Any further thoughts as to what sort of demand there would be for securing a yearly lease and how much you could get for it ?

Spent about £1,000 and days and days of painting.
In 2004 they were unfashionable and unwanted. Within a year or two they became desirable. I think that by 2006 Had jumped to £12,000. So the 10 year gain since 2006 is not so impressive. Yummie mummies want one at the moment and if it becomes a necessity to have a beach hut to talk about at Dinner Parties they wiould drive the price up. Time will tell.

The yearly lease sounds a perfect idea but I have no idea what would be an achievable price. There is definitely a demand.
You have got me thinking and I may look at renting mine out., especially as It already has Farrow & Ball painted doors, darling. So that I can still use it myself, I would rent in the Easter and Summer holidays and perhaps Half and Full marathon days.

So as an investment I would say no but if she wants a beach hut for her own use and maybe make a small return yes.

knocky1 · Jan 12, 2016

http://www.beachhuts4hire.co.uk/407/Brighton_EastSussex/display.aspx
http://www.beachhuts4hire.co.uk/256/Brighton_EastSussex/display.aspx

knocky1 · Jan 12, 2016

http://www.beachhuts4hire.co.uk/378/Brighton_EastSussex/display.aspx

These 3 I have found but have no idea what the occupancy rates are. I like the look of the rental though!
Let us know anything you find out and I will do likewise. I have made a note of these hut numbers and when the weather warms up will research by running past them and seeing how often they are full.

Guinness Boy · Jan 12, 2016

These two may soon be going cheap. Their owners could be in trouble as, apparently the one on the right spent all Boxing Day chasing the one on the left round the seafront. In retaliation the left hut's owner attempted arson.

knocky1 · Jan 12, 2016

Guinness Boy said:
These two may soon be going cheap. Their owners could be in trouble as, apparently the one on the right spent all Boxing Day chasing the one on the left round the seafront. In retaliation the left hut's owner attempted arson.

View attachment 71363

Before he burns his own Beach Hut down he will hopefully change the pink to claret. He must have used a cheap claret paint. I think Farrow & Ball have a shade that is closer. Yes a quick look at my Paint Chart and it is "Pikey Claret" in a matt finish. They don't have gloss.

Mr Putdown · Jan 12, 2016

knocky1 said:
Before he burns his own Beach Hut down he will hopefully change the pink to claret. He must have used a cheap claret paint. I think Farrow & Ball have a shade that is closer. Yes a quick look at my Paint Chart and it is "Pikey Claret" in a matt finish. They don't have gloss.

Is the one on the left owned by a Villa fan then?

Where I live in Dorset the going rate for a beach hut is upwards of £200k

http://www.bournemouthecho.co.uk/ne...d_beach_huts_up_for_sale_for_a_total_of___1m/

Del Boy · Jan 12, 2016

Guinness Boy said:
These two may soon be going cheap. Their owners could be in trouble as, apparently the one on the right spent all Boxing Day chasing the one on the left round the seafront. In retaliation the left hut's owner attempted arson.

View attachment 71363

Traditional Punch and Judy show

dazzer6666 · Jan 14, 2016

Guinness Boy said:
These two may soon be going cheap. Their owners could be in trouble as, apparently the one on the right spent all Boxing Day chasing the one on the left round the seafront. In retaliation the left hut's owner attempted arson.

View attachment 71363

Is one on wheels? Any cladding?

Friend of ours has just rented one for a year, think it cost about £800...

Honky Tonx · Jan 15, 2016

Bozza said:
I'm curious.

Bi-curious Male popular at The Amex, is this you?

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