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Luton Property Investment: 8 Reasons to Invest in Luton Buy to Let

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    Reasons to Invest in Property in Luton

    Thinking of investing in Luton property investment?

    Then this is the ultimate guide for you.

    Here you will find a complete breakdown of property investment in the Bedfordshire town of Luton, so you can find out if you should invest in the region.

    In this guide, you will learn:

    • Why you should invest in Luton in 2024
    • The latest Luton buy to let market data
    • The latest Luton investment property for sale
    • The best areas to invest in Luton

    And more!

    So, if you want to learn everything there is to know about Luton property investment, then keep reading.

    We’ve split up our guide into three digestible chapters so you can find out exactly what you want to know about Luton buy to let.

    Let’s begin

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      Chapter 1 – Why Invest in Luton?

      Chapter 1 of our guide will give you eight reasons why you should invest in Luton buy-to-let in 2024.

      If you already know that you want to invest in Luton, feel free to skip to Chapter 3 for the latest Luton investment property for sale.

      Key Topics:

      • High House Price Growth
      • Strong Rental Demand
      • Massive Regeneration
      • Luton House Price Forecast

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      Why Invest in Luton? (8 Reasons)

      While locations like Liverpool, Manchester, and London will typically enter the minds of property investors, one area you may not have thought about is Luton.

      This Bedfordshire town has rapidly increased in popularity over recent years and has quickly cemented itself as one of the best up and coming areas to invest in property.

      But why has property investment in Luton become so popular?

      There are currently eight popular reasons why so many investors choose to invest in Luton buy to let property.

      They are:

      1. Affordable Property Prices
      2. High House Price Growth
      3. Massive Regeneration
      4. Excellent Transport Links and Amenities
      5. Strong Rental Demand
      6. Growing Student Population
      7. Robust Business Backbone
      8. Strong House Price Forecast

      Let’s explore these eight reasons in detail, so you know why so many investors are now choosing Luton property investment in 2024.

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      Luton Town

      1. Invest in Luton for Affordable Property Prices

      As one of the best property investment opportunities in 2024, Luton is an exciting prospect for investors in the future.

      If you want to buy a property in Luton, you can expect some affordable prices.

      According to official Land Registry figures, the average property price in Luton is just £251,941.

      This is an unbelievable price given the fact the town is just 22 minutes from London.

      For context, Luton house prices are over £10k below the UK average house price.

      They are also a whopping £504,223 below the average in London.

      Compared to other popular investment locations in southern locations, Luton buy to let comes out firmly on top for affordability.

      This affordability also lends itself well to rental yields, with the current gross average rental yield in Luton of 4%.

      It’s unsurprising, then, that Luton was voted the best buy-to-let location for three consecutive years between 2016 and 2018, according to the LendInvest buy-to-let index.

      At the end of 2020, the latest property news found that Luton housing was the number one location for first-time buyers due to its affordable prices.

      This reputation has continued all the way into 2024, with Luton ranked in the top 25 buy-to-let areas alongside cities like Manchester and London, according to Aldermore Bank’s city tracker.

      Overall, if you’re looking for a property close to London, you’re simply not going to find prices as low as this.

      This means that if you buy a property in Luton, you’re likely getting one of the better deals in the southern region.

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        Miniature wooden houses and red arrow up. The concept of increasing the cost of housing. High demand for real estate. The growth of rent and mortgage rates. Sale of apartments. Population grows

        2. Invest in Luton for High House Price Growth

        When it comes to capital growth, Luton offers a compelling solution for investors looking at southern investments.

        According to the latest Land Registry data, Luton buy to let property prices are 9.09% higher than a year prior.

        When looking at the Luton house prices graph, property values lulled during 2020 in Luton, which is something you would expect given the covid-19 pandemic.

        In 2023, property prices in Luton have seen a considerable uplift, with prices increasing to £285,944 in March from £268,715 at the same time in 2020.

        This growth is especially impressive given the economic pressures caused by Brexit and three national lockdowns during the covid-19 pandemic.

        But it’s not just a fluke that property investment in Luton has seen such growth.

        In fact, Luton has consistently outperformed London for the last two decades.

        As you can see from the table, Luton has seen house prices rise by 215.66% from 2001 to 2021, while London increased by 4% less.

        Likewise, from 2016, Luton prices rose by over 16%, while London saw prices drop by the same amount.

        These figures clearly highlight the ongoing strength of the Luton market, with predictions from market experts suggesting this will continue into 2024 and beyond

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        3. Invest in Luton for Massive Regeneration

        An exciting aspect of Luton property investment and Luton buy to let is the regeneration potential of the Luton area.

        A big part of the growth seen in Luton property prices has been the wealth of regeneration on offer in the town, outlined in the Luton 2040 vision.

        The Luton population has increased heavily over the years, with more and more people choosing to live and work in Luton.

        The Luton population in 2017 was around 215,000.

        Fast forward 12 months and the Luton population in 2018 was now over 217,000.

        There’s been a steady increase in the town’s population. Many experts are accrediting this to the wealth of regeneration on offer.

        Currently, the top regeneration efforts are:

        • London Luton Airport – £160m redevelopment creating 10,000 jobs by 2030.
        • Luton Investment Framework – £1.5bn investment enhancing Luton area and creating 18,500 jobs.
        • LU20N – Award-winning mixed-use scheme adding 785 homes and 50,000 sq. ft. of retail space.
        • The Mall Luton – Improvements to one million sq. ft. mall with new family zone and kids play area.
        • The Hat District – Iconic Luton area will be improved with 25,000 sq. ft. of new workspace to attract 135,000 new visitors by 2022.
        • Luton Town Football Club – New 23,000-seater Power Court Stadium aimed at boosting the local economy by £68 million.

        Aside from these main developments, other work includes the New Century Park in East Luton, which will create around 3,000 jobs.

        Luton is also set to make a bid to become the UK City of Culture 2025, which, if successful, could lead to far more regeneration and investment into Luton property and the local economy.

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          In both 2018 and 2019, Luton was voted the ultimate London commuter town by estate agents Jackson-Stops.

          A big reason behind this is the fantastic transport links on offer.

          London Luton Airport is one of the key components of the town’s success and accounts for thousands of jobs.

          It also provides international travel to over 18 million people.

          Luton is also located right by the M1 and has easy access to both the M25 and the A1 – some of the most used routes in the UK.

          Alongside these car routes, Luton features three major train stations, providing access to London in just 22 minutes.

          These routes even extend to international travel, with direct train links to St Pancras International, allowing visitors access to the Eurostar journeys to Paris or Brussels.

          For residents interested in getting around Luton, the fantastic Luton and Dunstable busway is also here to consider.

          This transport link connects areas like Luton, London Luton Airport, Houghton Regis, and Dunstable, with services every seven minutes.

          All these transport links make it easy to understand why Luton is considered the ultimate commuter town

          5. Invest in Luton for Strong Rental Demand

          The lifeblood of any investment is demand, and when it comes to property investment in Luton, there is plenty of demand to go around.

          Renters from across the southern UK regions have started to move to Luton to take advantage of the low rental prices on offer.

          According to Zoopla, the average rent in Luton is just £839.

          In comparison, London rent is around 271% higher at £3,117 per month.

          Good news for investors, too, as Luton currently cannot keep up with this demand.

          The town is currently building 430 new homes per year, but experts estimate this number needs to increase to 1,417 homes to meet demand.

          This is good news because it shows long-term tenant demand, which will likely result in further house price growth and expanding rental yields in the process.

          This makes any new Luton developments an even hotter commodity, such as The Hive – a brand-new Luton residential project.

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            6. Invest in Luton for a Growing Student Population

            While the town of Luton is attracting plenty of young professionals thanks to the employment opportunities on offer, you may be surprised to hear that Luton also has an emerging student population.

            The University of Bedfordshire currently attracts around 14,000 students across six separate campuses, one of which is in central Luton.

            This campus attracts around 3,200 undergraduates and 1,700 postgraduates to Luton town centre, making the region a hotspot for student property investment in Luton.

            As recently as 2019, regeneration work has propelled the Luton student market even further, with a £37 million STEM building and a £46 million library.

            If you’re looking for lucrative returns and strong rental demand, investing in purpose-built student accommodation in Luton property investment is a wise idea for 2022 and beyond

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            Luton

            7. Invest in Luton for a Robust Business Backbone

            A significant component behind Luton’s popularity amongst both students and young professionals are the employment opportunities on offer.

            Due to Luton’s reputation as a commuter hotspot, more and more businesses have chosen to set up shop in the region to attract the 23 million people within two hours of the town.

            Firstly, the town is home to the likes of Vauxhall Motors, EasyJet, Astra Zeneca, and much more.

            The Butterfield Technology Park sits alongside the Innovation Centre and Business Base, which features over 100 businesses.

            That’s not to mention London Luton Airport, one of the UK’s fastest-growing airports.

            Overall, Luton has a varied employment background in engineering, pharmaceuticals, automotive, and aviation industries that all call the town home

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              8. Invest in Luton for Strong House Price Forecast

              While recent capital growth in property investment in Luton has been incredibly high, the future predictions for the town are equally as optimistic.

              Savills recently updated their famed house price forecast for the UK market.

              Using their latest region predictions, we can estimate how the Luton property market will perform in 2024 and beyond.

              Classed in the East of England region for logistical purposes, Savills has predicted Luton’s region will see prices rise by 16.7% by 2028.

              It’s important to note that this prediction is for the entire East of England, with Luton house prices likely to rise far higher than this.

              Meanwhile, London will see a growth of 13.9% – the lowest prediction in the UK.

              This means if you buy a property in Luton in 2024, you could see a capital growth rate of 16.7% by 2028.

              The Luton house price forecast is fascinating, especially when you factor in rental figures, too.

              This makes now the perfect time to invest in Luton before house prices rise even further and reduce the potential to earn massive capital gains.

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                The Hive - Luton

                Chapter 2 – Best Buy to Let Areas in Luton 2023/2024

                Chapter 2 of our property investment Luton guide will highlight the best buy to let areas in Luton for investing.

                We will look at the latest average house prices and gross rental yields in each area to help you identify which location you should invest in.

                Key Topics:

                • Best Places to Invest in Luton
                • Best Postcodes to Invest in Luton
                • Is Luton a Good Place to Live?
                • Luton FAQs

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                Luton-Map

                The Top 5 Best Luton Buy to Let Areas 2023/2024

                If you want to make the best investment in Luton, it’s essential to research the best areas to invest.

                This is because not every area is the same for investment. Some regions generate higher returns and demand from residents.

                With this in mind, we’ve made a list of Luton’s best buy to let areas for 2023 and 2024, so you know exactly where to invest.

                Keep reading to see the best places to invest in Luton, with the latest house prices Luton offers.

                 

                Central Luton – LU1

                Avg. House Price: £295,261
                Avg. Gross Rental Yield: 3.69%

                At Luton’s epicentre, central Luton is a fantastic location for those looking for the best places to invest in Luton.

                Containing wards like Dallow, Farley, and South, the LU1 postcode currently offers the most affordable property prices on this list at only £295,261.

                Better yet, the region has seen property prices grow by a whopping 56.06% in the last 10 years, according to Zoopla.

                There’s a good reason behind this sizeable growth, too.

                Not only is LU1 home to the University of Bedfordshire, making student property investment booming, but the region is also blessed with world-class transport links.

                London is just 22 minutes away from Luton town centre, with railway connections to Leeds and Sheffield, all the way to Brighton and Gatwick.

                While returns are only 3.69% compared to the town’s average gross rental yield of 4.22%, central Luton is a crucial investment hotspot with room to earn far higher returns.

                For this reason, LU1 is likely the best place to buy investment property in Luton.

                 

                LU2

                Avg. House Price: £331,701
                Avg. Gross Rental Yield: 3.87%

                Another area widely considered one of the best areas to invest in property in Luton is the LU2 postcode.

                Home to areas like Crawley, High Town, Round Green, Stopsley, and Wigmore, LU2 is a more affluent Luton area, and this is clearly seen in the property prices.

                You can expect average house prices in Luton of almost £330k, significantly higher than 10 years ago

                LU2 is also the site of London Luton Airport, which is a massive contributor to employment in the area.

                Due to the property prices and rental yields, investment properties in Luton LU2 won’t be available to everyone.

                For this reason, LU2 is a Luton area you should avoid as an investor if you don’t have the cash available, but it is still one of the best areas in Luton to live.

                 

                LU3

                Avg. House Price: £326,923
                Avg. Gross Rental Yield: 3.86%

                The third area in our list of the best places to buy property in Luton is the LU3 postcode.

                Found to the North of Luton, LU3 features Barnfield, Biscot, Bramingham, Limbury, Northwell, Saints, and Sundon Park.

                A popular family area, this leafy green region sees average house prices of just £326,923, with its most popular house type being semi-detached houses.

                Rental returns here are some of the highest on this list, with average Luton returns of 3.86%.

                Meanwhile, property prices have grown in the area by a sizeable 51.49% from 2011 to 2021.

                For these reasons, LU3 is one of the best areas to invest in property in Luton.

                 

                LU4

                Avg. House Price: £313,368
                Avg. Gross Rental Yield: 4.22%

                The final postcode on our list of the best Luton buy to let areas is LU4.

                Found to the west of Luton, LU4 consists of areas like Challney and Lewsey, and is a popular area for commuters thanks to the nearby access to the M1.

                Another area considered one of the best areas in Luton to live, LU4 has a bunch of grade-listed buildings, making it a charming part of Luton.

                Property prices have increased by over 52% from 2011 to 2021, with rental returns one of the highest on this list at 4.22% in 2023.

                However, due to the reasonably sizeable property prices of over £295k, LU1 is still likely the best area in Luton for investment.

                That being said, if you’re an investor looking for property and want to find a Luton property for sale, LU4 is an excellent choice.

                 

                Dunstable

                Avg. House Price: £317,652
                Avg. Gross Rental Yield: 3.85%

                Although not technically in Luton, Dunstable is a nearby town worth considering when looking at the Luton area.

                Found across the M1, Dunstable has a robust commercial backbone with plenty of jobs on offer from Amazon and Superdrug.

                Notably, a recent new junction added to the M1, the 11a, has freed up more land in the area.

                This leaves the potential for future regeneration in the Dunstable area, with 5,000 new homes already planned for the coming years.

                However, while gross rental yields are far higher, it’s NET yields that you should be interested in, with some Luton properties offering incredibly high NET yields.

                The Hive, for instance, currently generates NET yields of over 5%.

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                Luton,England

                Is Luton a Good Place to Live? (5 Facts)

                A big question you should ask yourself before investing is: “Is Luton a good place to live?”

                While on the surface, Luton property investment is compelling, you need to know if people want to live in the area.

                To help answer the question “is Luton a good place to live” here are five facts about living in Luton and the wider area.

                Here you find what the town has to offer, along with its history, so you can see if your Luton property will generate enough tenant demand.

                 

                1. Luton  Hosts the UK’s Biggest One-Day Carnival

                When you think of Luton, it’s unlikely that you will think of Brazil.

                And yet, the Luton International Carnival celebrates all things Brazil with a huge cultural event in the town.

                From musical performances to plenty of dancers, the large carnival event is held traditionally on the late May bank holiday, and is a huge hit amongst residents and tourists alike.

                 

                2. A Hatting Haven

                Hat-making and Luton go hand in hand.

                Did you know that back in the 1700s, hat-making was Luton’s biggest industry?

                This past can still be felt today with the new Hat District and Luton’s local football club, Luton Town FC, nicknamed “The Hatters.”

                 

                3. Home to the UK’s 5th  Busiest Airport

                London Luton Airport is one of the top five busiest airports in all of the UK and is actually the fourth biggest in London.

                Millions of passengers use the airport each year, which now flies to over 60 destinations across the globe.

                 

                4. An Ancient Town

                While the town can trace its existence back to the 6th century when founded by the Anglo-Saxons, there’s evidence of Luton existing for a lot earlier before then – 250,000 years earlier, in fact!

                Around Round Green and Mixes Hill, evidence has been found of settlements heralding from the Palaeolithic area, dating back a quarter of a million years.

                 

                5. A Property Potential Paradise

                Having been named one of the best investment areas in 2016, 2017 and 2018, Luton offers huge potential for investors.

                In fact, due to expanding population, average rent has increased by about 10.4% between 2014 and 2017, which is actually one of the highest rental increases in the UK.

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                Luton Buy to Let FAQs

                Some of the best areas to live in Luton include Wigmore, Stopsley, and Leagrave.

                According to the UK House Price Index, the average house in Luton for sale in 2023 is £285,944.

                Yes, Luton is a good place to invest in property.

                It was twice named the best commuter hotspot by estate agents Jackson Stops and was voted the best buy-to-let location for three consecutive years by LendInvest.

                No, Luton house prices are not dropping in 2024. Currently, the average house price in Luton is ££285,944, which is 6.41% higher than a year ago.

                Yes, Luton house prices are likely to rise. Savills has estimated property in the East of England will increase in value by 3% by 2027.

                Currently, Luton is one of the most affordable places to live in the South of England. The average house price in Luton is £251,941, which is £900 higher than the national average, but still significantly lower than London prices.

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                The Hive

                Chapter 3 – Luton Property for Sale

                In the final chapter of our property investment Luton guide, we will look at the latest Luton investment property available from RWinvest.

                We will also look at who RWinvest is and whether you should invest with us.

                Key Topics:

                • Luton Investment Property for Sale
                • Who is RWinvest?
                • Why Invest With Us?

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                The Hive

                Luton Investment Property for Sale

                If you’re looking for the latest Luton investment property for sale, then you’ve come to the right place.

                Here at RWinvest, we have just launched a brand-new Luton investment property offering 5% NET returns from only £179,950.

                Take a look below to learn more about this fantastic investment.

                The Hive – Luxury Luton Investment

                Prices From Only £165,266
                Up to 5% NET rental returns
                View Property

                Located just 22 minutes from London, this contemporary Luton investment offers all the luxury of the capital but at a fraction of the price.

                With floor-to-ceiling windows, an on-site gym, a health and wellness centre, and a 24-hour concierge, this new development is set to be the talk of Luton town.

                Contact us today to reserve your unit.

                Hurry fast, as there are only 67 apartments available in The Hive, with our analysts estimating stock will sell out fast thanks to luxury facilities and a world-class location.

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                  Who Is RWinvest?

                  So, who exactly is RWinvest, and why should you buy Luton property for sale with us?

                  RWinvest is a property investment company specialising in residential and student off-plan property.

                  Nominated as Business of the Year 2021 and named the North West’s Best Property Business in 2020, RWinvest has offices across the UK, so we are perfectly positioned to analyse local markets and find the best investments for you.

                  But don’t just take our word for it.

                  With over 75,000 investors and 1,000 five-star reviews, our 17 years of experience means we are the number one destination for finding houses to buy in Luton.

                  So, if you’re interested in property in Luton, and want to find some amazing Luton buy-to-let investments, be sure to contact us today.

                  Alternatively, if you want to invest in other areas, like with Embankment Exchange in Manchester, just click the link to learn more about this brand-new set of riverside apartments.

                  Why Invest With RWinvest?

                  We hope you enjoyed our guide to Luton property investment and investment property.

                  If Luton buy-to-let sounds like an attractive choice , and you want to start your investment property journey, why not consider RWinvest for your investment?

                  Here are five reasons RWinvest is the best place to invest in Luton property investment.

                  1. We have over 17 years of experience.
                  2. We offer exclusive properties you won’t find anywhere else.
                  3. Our below market value prices mean you won’t find property cheaper elsewhere.
                  4. You can get exclusive deals, like free furniture packs worth over £5,000.
                  5. You can pay using our fantastic payment plans, which makes buying property even more accessible.

                  So, what are you waiting for? Start your investment journey today with the best in the business and explore our range of buy to let properties for sale in Luton.

                  Start it with RWinvest.

                  Alternatively, if you aren’t quite ready to invest yet, why not read some of our other investment guides.

                  You can learn more about:

                  Just click the links and be taken to our beginner and expert-friendly guides.

                  For the latest on the property market in the UK in 2024, be sure to keep up to date with our blog.

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                  Author

                  Reece Pape

                  Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.

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