Why have house prices in Luton increased faster than anywhere else in the UK in 2016?
For some years now, it’s been the case that the London exodus has been brewing.
While it was once seen as incredibly trendy to live and work in the capital, this attitude has started to give way a little as people start to see the value of choosing to live elsewhere instead.
Rise of the commuter belt
As soon as buyers or tenants start to leave the capital and look towards surrounding towns and cities, the benefits are plentiful, not least in terms of cost. You don’t have to travel too far on a train of a morning to see prices dropping from over half a million for buyers or £1,500 per month for tenants down to much more manageable costs.
Of course, these are not the only benefits to be seen away from the capital.
Buyers and tenants in commuter towns are increasingly enjoying a more family-focused way of life, a more balanced lifestyle and a generally more pleasant outlook. This is the reason that over the past few years more and more people have started to vacate London and look towards towns like Luton for improved house prices, better standards of living and a stronger work-life balance.
Was 2016 the year of the commuter town?
For towns like Luton, 2016 saw a large investment plan set out for regeneration and development, with leaders believing that they had the ability to attract some of those perhaps looking outside of London for the first time if they offered an attractive alternative. And it seems that this has worked, with last year marking one of the first that Luton has rocketed to the top of the property standings on the back of rising demand. Read more…
House prices in Luton
According to data published at the end of the year by the Halifax, house prices in Luton outpaced those seen across the whole of the UK. For 2016 as a whole, house prices in the town were up by some 19.4 per cent, with the average property worth as much as £48,000 more than it was at the start of the year.
What this means for the town is that over the last year, it has far exceeded annual national price growth. As more and more buyers have sought to buy in the town, house prices in Luton have been more than twice as fast as the UK, where there has been growth of just 7.5 per cent on average.
Martin Ellis, housing economist with the Halifax, said that commuting has been the biggest influencer in house price rises across the UK this year, with a number of towns around the capital among the top performers throughout 2016.
“Most of the areas that have seen the biggest house price rises during 2016 are either within close commuting distance of the capital or in outer London. Demand in these areas has risen as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas,” he said.