The nation’s buy-to-let market is going from strength to strength at present, but one area in particular is standing head and shoulders above the rest in terms of its attraction for investors – Luton.
It is a town with an impressive future ahead of it in terms of buy-to-let, with the LendInvest Buy-to-let Index Quarterly Report having placed Luton in first position during Q3 last year for achieving the UK’s strongest rental price growth and for buy-to let in general.
The Bedfordshire town recorded an impressive rental price growth rate of 6.81 per cent, placing it comfortably ahead of Manchester (6.26 per cent) and Leeds (5.57 per cent), which claimed second and third spots in the report. At the same time, investors in Luton secured an average capital gain on their properties of 10.29 per cent, with a typical rental yield of 4.51 per cent.
In isolation, these figures may not seem that impressive, but when compared to the performance in other locations across the country, where capital gains have fallen into negative figures and yields can be less than three per cent, Luton has emerged as a buy-to-let hotspot.
London commuter belt property hotspot
Luton is a highly attractive market for buy-to-let at present, with a range of supporting factors including its ideal location as a commuter destination for those working in London and the surrounding areas, as well as its status as a university town.
This latter factor is perhaps one of the main reasons for such strong rental yields in Luton at present, as a high proportion of buy-to-let accommodation in the area is devoted to student housing.
Experience Invest offers a range of attractive student and residential property investments options in Luton, with new developments springing up all the time. It is a vibrant and attractive place for people to live and work, and with a planned £110 million expansion of Luton Airport underway and a burgeoning local economy, now could be the perfect time for more investors to see what all the fuss is about.
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