Lying just 30 miles north of London, Luton is a key commuter town for the UK’s capital. Well-priced property, excellent transport links and a diverse community are making this large English town a popular choice for investors. Here’s why we think you should consider investing in property in Luton.
In 2010, the University of Bedfordshire opened a new £34million Campus Centre in Luton, one of the university’s main hubs. And in the years that followed, this campus has continued to see significant investment. Nearly £30million has been spent on building the state-of-the-art Postgraduate and Continuing Professional Development Centre, the School of Art and Design, and the Media Arts Centre.
Luton itself also has plenty to offer in terms of entertainment. There’s shopping at The Mall Luton, an array of sports facilities, an 11-screen cinema, and a good mix of bars and restaurants. Moreover, in 2016, the town launched its Cultural Quarter, which is home to a collection of independent and creative businesses and hosts regular live entertainment such as events, gigs and festivals. Then of course there’s Luton International Carnival, the largest one-day carnival in Europe!
Being in such close proximity to London is also a big draw. This is just one reason why the town’s transport links are so significant.
Whether travelling by road or rail, travelling into London from Luton is quick and easy. If coming by car, a straight route down the M1 motorway will bring you into the capital in under an hour. However this major UK road also heads north, taking drivers up to Leeds. Alternatively, travelling by Train takes less than 30 minutes! Luton has three mainline railway stations, Luton, Luton Airport and Leagrave, which connects the town with not only London, but also other major UK destinations including Brighton, Leicester, Leeds and Sheffield.
But perhaps the most important piece of transport infrastructure in the town is its international airport. London Luton Airport is one of London’s five main airports and is also the UK’s fifth busiest airport, with over 14.6 million passengers passing through the airport in 2016. Serving destinations across Europe, the airport has also become a key part of the local economy.
Once famed for its millenary history (even the local football team are nicknamed The Hatters!), Luton’s economy has come a long way. Aside from the standard retail and service industries, its main employer is London Luton Airport and the airlines headquartered there: EasyJet, Monarch Airlines and TUI UK. As England’s fastest growing airport, it aims to increase its annual capacity by 50% by 2020 through a £110million redevelopment.
And a new growth plan for the town itself was announced by Luton council in 2015. Thanks to £1.5billion of inward investment, a variety of mixed-use developments aim to create more than 18,500 new jobs. These include a 395-acre Enterprise Zone, where it is hoped a host of multinational firms will base themselves.
This steady growing economy has led an increasing number of homebuyers and investors to delve into property in Luton.
Luton is an extremely popular commuter town, as it only takes 25 minutes to get into London, but property costs less than half as much! Currently the average price is just £239,618, compared to £685,877 in the capital.
In addition, with house prices in the town on the increase, going up by 18.5% in 2015, the potential capital gains from buying a property in Luton are certainly impressive. And with rental yields as high as 6%, Luton has become one of the most profitable areas in the UK to be a landlord.
As more people look to Luton for an affordable place to live close to the capital, rental demand has increased. This in turn has raised average rents in the area to £722. That equates to a 10.4% increase since 2014, the highest in the UK.
Facts and figures like these should surely appeal to any savvy property investor.
If you’re ready to start your investment journey, here are the properties we currently have available in Luton.