The supply/demand imbalance has been a defining feature of the UK property market in recent times, with housing availability struggling to keep up with the rising need for homes from would-be tenants and buyers.
This is particularly evident in locations where property demand is high, such as Luton, one of the most popular towns in London’s commuter belt.
Luton’s unmet housing need
Earlier this year, Luton Borough Council released a report that stated its support for proposals to help meet the town’s unmet housing need. It is estimated that an additional 7,350 new homes will be required up to 2031.
Central Bedfordshire Council had previously outlined a plan to build up to 4,000 properties to the north of Luton, close to the A6, which led to some disagreement between the two authorities, Luton Today reported.
Regardless of the details of specific initiatives, it’s clear there is an acute need for new-build properties and additional housing in Luton. This demand is only set to increase in the coming years, as more London commuters set their sights on the town and local businesses create more jobs.
This is a positive trend for investors in Imperial Square, an off-plan property in the centre of Luton that will provide excellent transport links to London.
Demand from tenants will raise the prospective rental yields on offer to those who have invested in the apartment complex. Recent house price trends also indicate a strong likelihood of healthy capital growth.
With affordability issues continuing to deter people from living in central London, nearby towns such as Luton are becoming more appealing, leading to growth in property prices.
A recent report from Post Office Money indicated that locations within commuting distance of London had seen prices go up by up to 22 per cent in the past year.
For buyers, the combination of strong demand from tenants and a wider trend of increasing property values creates a compelling case to invest in Luton.
For more information about how investing in a buy-to-let apartment in Luton, contact Experience Invest today.