9 reasons to choose Luton for UK property investment
Luton, one of the towns in London's outer region, has been chosen to recieve £1.5 billion of investment to enable major town-wide regeneration. Luton was already identified as one of the top places for buy-to-let investment in 2017 and property investors are encouraged by the long term economic plans for the town.
London remains the dynamic, flourishing economic capital it has been for many years but the housing bubble in London has most certainly burst. Priced out of London by high house prices and rents, professionals are looking to town within easy commuting distance like Luton. TotallyMoney.com ranked Luton as one of the top commuter hotspots, taking house prices, cost of the commute and life satisfaction into account.
In 2017, Luton became one of the top UK postcodes for buy-to-let developments according to a Buy-to-Let Index report from LendInvest.
There was a 19.4% rise in property prices in 2016 and Savills expect further increases of 41% over the coming 5 years. These increases will be spurred on by £1.5 billion of private investment over the next 20 years contributing to positive increases in employment in the town.
Luton is well connected. 23 million people are within a two hour reach, made possible by the three mainline rail stations, the UK’s motorway network and London Luton Airport which is now the 5th busiest in the UK flying to popular destinations including Nice, Malaga, Rome, Budapest and Amsterdam.
There are 6 trains per hour from Luton which go direct into London St Pancras, the heart of the capital.
Ambitious and innovative, the town is pursuing plans for a £200 million mixed-use development scheme to include venues for live sport and music, further leisure alongside lifestyle retail facilities, residential apartments and other valuable amenities.
Rental potential and longer-term capital growth in Luton is strong. Flats in the centre of Luton are achieving around £800/£825 pcm and growth is expected to continue despite Brexit. eMoov predicts that house prices in the UK will increase by 56% on average by 2027. According to LendInvest’s Buy-to-let Index report, Luton is one of the best places for buy-to-let investment in the UK in 2017, with capital gains of 12.83% and rental price growth of 7.37%.
London Luton Airport saw 1.4m passengers pass through its terminals in June 2017, a signal of its expansion as its 8.1% increase on the same month last year. A plan for growth for has focused on the redevelopment of its retail and dining offering and improving the road and rail transport links round the airport. LLA has targeted a 50% increase in annual capacity by 2020.
Luton Airport is a major regional employer and the location is now complemented by a new business park, which has attracted high-quality blue chip companies to the site including the new headquarters of Europe’s leading travel group, Thomson TUI. Luton has long been the home of Vauxhall Motors with its UK headquarters and a European customer care centre in the town.
Find out how to secure a UK property investment opportunity right in the centre of Luton from £189,000 with Gross yields up to 5.08%.