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

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 2021. 

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 

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 2021. 

1. Invest in Luton for Affordable Property Prices 

As one of the best property investment opportunities in 2021, 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 2021, 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. 

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. 

However, now in 2021, property prices in Luton have seen a considerable uplift, with prices increasing by almost £10k between March and June (the latest available data from the Land Registry). 

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

For comparison, the economic powerhouse of London has seen house prices plummet by a staggering -13.22% in the last year alone. 

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% since 2001, while London has increased by 4% less. 

Likewise, since 2016, Luton prices have risen by over 16%, while London has seen 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 2022 and beyond. 

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.   

4. Invest in Luton for Excellent Transport Links and Amenities

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.  

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. 

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. 

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 2022 and beyond. 

Classed in the East of England region for logistical purposes, Savills has predicted Luton’s region will see prices rise by 18.0% by 2025. 

This is after a massive 8% rise predicted in 2021, with subsequent prices rising steadily in 2022, 2023, 2024, and 2025. 

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 only see prices grow by 12.4% – the lowest prediction in the UK. 

This means if you buy a property in Luton in 2021, you could see a capital growth rate of 18% by 2025.  

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

Savills has estimated that rental prices will rise across the UK by 17% by 2025, in line with rising incomes. 

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. 

Chapter 2 – Best Buy to Let Areas in Luton 2021/2022 

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 FAQ’s 

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.  

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?