Southampton continues to be a hotspot for property investors, landlords, and developers. With rents rising, stable house prices, and growing HMO activity, the city offers multiple opportunities to maximise returns. This guide provides the latest data on average rents, house prices, HMO trends, and planning activity, everything investors need to know before buying or converting property in Southampton.

Rental market overview

Private rents in Southampton have increased to an average of £1,225 per month, up 4% from last year. Flats and maisonettes remain popular for tenants, while larger homes continue to attract families. One- and two-bedroom properties are in high demand, particularly from young professionals and first-time renters.

Average rent by property type:

• Flats & maisonettes: £976
• Terraced: £1,295
• Semi-detached: £1,386

Three- and four-bedroom homes are often targeted by families, and demand for HMOs is rising steadily, especially in areas near universities and transport hubs. This makes smaller multi-bedroom properties and flats attractive for buy-to-let investors.

House prices and investment potential

The average house price in Southampton is £234,000, with detached homes averaging £412,000 and semi-detached properties at £309,000. Terraced homes and flats are more affordable, making them ideal for investors seeking higher rental yields. First-time buyers typically pay around £209,000, while properties purchased with a mortgage average £238,000.

Investors should note that while prices are stable, rental demand continues to grow, creating opportunities for consistent cash flow. Monitoring local market trends and planning applications can give a competitive edge.

HMO opportunities in Southampton

Houses in Multiple Occupation (HMOs) are a key focus for investors. Southampton operates an Additional HMO Licensing Scheme, covering smaller HMOs across nine wards, including Banister, Bargate, and Shirley. Recent planning applications highlight a surge in conversions to 7–15 bed HMOs, showing strong rental demand.

Key points for investors:

• HMO conversions offer higher rental yields than standard buy-to-let properties.
• Staying compliant with licensing and local planning rules is crucial.
• Areas near universities and transport links are the most sought after.

Southamptons ambitious regeneration and growth

Southampton is not just a city with strong rental demand and investment opportunities, it’s a city on the rise. The Southampton Renaissance Board, a partnership of leading local organisations, is delivering a bold masterplan to make Southampton a pioneering global maritime city. The initiative focuses on:

• Nurturing diverse talent, creativity, and innovation
• Attracting sustainable green investment
• Delivering inclusive, healthy change for people, place, and planet

As one of the fastest growing cities in the UK, Southampton has consistently ranked in the top five cities in England for growth according to the PwC Good Growth for Cities 2023 Index, reflecting its track record of sustainable, long-term development.

Key regeneration projects

• Bargate Quarter: Revitalising historic Bargate and Town Walls with new homes, retail, and a linear park.
• Centenary Quay: A vibrant waterside community offering riverside views, retail, and community facilities.
• Chapel Riverside: Mixed-use development on the River Itchen, combining residential, commercial, and retail spaces.
• Leisure World: Transforming a prime urban site with homes, hotels, leisure, and workspace.
• Maritime Gateway: Enhancing the city centre arrival experience, linking the station to the waterfront with new homes, offices, and leisure.
• Queens Buildings: Redevelopment enhancing city centre connectivity and urban spaces.

These projects underline Southampton’s long-term investment appeal, giving developers and landlords confidence in the city’s future growth.

Property networking opportunities in Southampton

Southampton’s property market is evolving fast, with regeneration projects, HMO growth, and increasing investor interest shaping the opportunities in the city. Staying ahead means connecting with the right experts and seeing projects firsthand.

The Property Developer Show in Southampton on Wednesday 10th June at St Mary’s Stadium, brings together over 40 exhibitors, 10+ keynote speakers, and 400+ property professionals, including lenders, insurers, and developers. Attending gives you:

• Insights into investment strategies and funding options
• Networking opportunities with like-minded investors and developers
• A chance to explore upcoming projects and market developments firsthand

By combining local market data, HMO trends, and expert insights from the show, investors and developers can make informed decisions and identify the best opportunities in Southampton for 2026. Whether you’re looking to expand your portfolio, secure funding, or understand the city’s growth, the show provides everything you need to plan your next move.