For investors looking to make a return on property investment, one of the most important factors to take into account is capital growth – the increase in value of the property over time.
One location in the UK that offers particularly strong prospects on that front is Luton in Bedfordshire, as shown by recent research.
The 250 per cent club
According to research by online estate agents HouseSimple, there are 19 towns and cities across the UK (excluding London) where average property prices have increased by more than 250 per cent since the start of the 21st century.
Luton was fourth in the overall ranking, with growth of 277 per cent taking typical house prices from £63,634 in January 2000 to £239,735 today.
Investors who have purchased property in the town over recent years will have already witnessed considerable capital growth and the likelihood is that this trend will continue.
The HouseSimple report noted that, while London has been the clear leader in house price growth since the turn of the century, the capital is generally seen as a stand-alone market that does not reflect the UK as a whole.
For buyers looking for lower entry prices than those available in London and strong potential for growth, Luton is a good option.
Sam Mitchell, chief executive of HouseSimple, commented: “Prices have boomed in many areas outside the capital, as these figures attest. What’s more impressive is that in the middle of this 18-year period, we experienced one of the worst recessions this country has ever seen. It shows the resilience of the UK property market.”
One of Luton’s key advantages for buy-to-let property investors is its appeal to commuters who want to live within easy travelling distance of London.
According to a recent study by estate agents Jackson-Stops, Luton is the top UK commuter hotspot for 2018. Factors such as the cost and time of travelling into the centre of London helped the town take top spot ahead of other locations such as Dorking in Surrey, Slough in Berkshire and Tonbridge in Kent.
At the Imperial Square development in the centre of Luton, Experience Invest will give renters the opportunity to combine these benefits with desirable on-site features, including a club lounge, landscaped outdoor areas and comfortable one- and two-bedroom apartments.
Early investors can benefit from up to a 10 per cent discount and projected NET rental returns of up to six per cent.