For several years now, property values in Luton have been gradually increasing as more and more people realise the value of investing in properties in such a convenient location. Still affordable even now, Luton offers a viable option to anyone priced out of central London but who needs to be able to access the capital; it also offers easy access to Europe via Luton airport, making it ideal for anyone who needs to travel to the Continent for business or pleasure. Road networks into London and up North are easily accessible, making Luton an excellent base.

Investing in buy-to-let properties in Luton

Buy-to-let has become more difficult in recent years due to changes to taxes (notably a 3% increase on stamp duty and greater tax on profit and revenue) and mortgages (making it harder for landlords to borrow). Yet the market for rented properties, especially in areas within commuting distance of London, remains lucrative and in great demand - and as fewer landlords are investing in this type of property, the supply of residential properties to rent is slowly drying up.

According to Lendinvest’s Buy-to-Let annual index, Luton is the fourth best buy-to-let area in the country, with an average yield of 3.97% on investment, representing a potentially very healthy income from your capital.
There are plenty of potential tenants looking for affordable rents within commuting distance of London and there is also a sizeable student population. The University of Bedfordshire has one of its main hubs in Luton and they are constantly developing and investing in their undergraduate, post-graduate and continuing professional development training courses to attract new students of all ages. Investing in properties that could accommodate students (as a property of multiple occupations) would be a very profitable venture.
 

Buying to live in Luton

Research by a London estate agent, Jackson Stops & Staff, reveals that whilst the average house price in London is nearly £500,000 whilst in Luton it’s just over £250,000 - so it’s feasible that you can find a decent-sized property within your budget. Train season tickets aren’t cheap (at around £5,200 per year) but you can be in central London in under half an hour and, when you offset the price of a season ticket against the interest on a much larger mortgage plus parking fees and congestion charges within London itself, it’s definitely an affordable option.

Crucially, house prices are rising at a healthy rate, so if you were to invest now then you can expect to build up some healthy equity within a reasonable timescale.
Living close to London may be useful for work but it’s important to have a decent quality of life where you live, too. Fortunately, Luton has plenty to offer in terms of entertainment with decent shopping, sports and leisure facilities and its Cultural Quarter is a hive of activity in the form of local and independent businesses plus live gigs, festivals and other events.

The job market is increasing thanks to decent investment in the airport and growth within the town itself including an Enterprise Zone, which is looking to attract a great deal of new businesses.