Welcome to the Experience Invest property blog. Experience invest is a property investment company that sources a wide range of property including student accommodation investments, high yield property such as hotel rooms and buy-to-let investments for people looking for income producing investments. In today's blog, we talk about some of the latest developments in Luton and providing you an insight into how much potential this location offers for property investors. Read on to find out more..

The Bedfordshire town of Luton is a source of great potential for property investors, particularly those who are looking for opportunities in the south-east of England that don’t have the same affordability constraints as London real estate. From a steady supply of new investment opportunities to the wider regeneration of the town as a whole, there are many reasons why Luton is one of the UK’s most attractive property investment destinations.

Property developments in Luton. There are currently a number of exciting new developments in Luton, which are helping to boost the profile of the town and address the undersupply of housing. Experience Invest and award-winning developer Opto Property Group have a particularly strong track record in the area, having delivered three projects in the increasingly lucrative student accommodation market: Park House, Chapel Street and Opto Village.

These properties provide well-equipped, comfortable accommodation for students attending the University of Bedfordshire, while investors can benefit from steady rental returns thanks to the ongoing strength of demand for UK higher education. Outside the student housing sector, Experience Invest and Opto Property Group are contributing to the regeneration through developments in Luton such as Imperial Square, an off-plan project comprising a selection of one- and two-bedroom apartments, and the newly completed New Bedford House.

New properties such as these are sorely needed in Luton, where demand from people who want to live in the town considerably outweighs the supply of available housing. Project Etopia, a firm that specialises in modular smart homes, recently released figures showing that Luton is 22 years behind the rate of construction needed to meet demand from buyers and tenants.

Urban regeneration. Luton is seeing the benefits of a major renewal programme, with the Luton Investment Framework establishing a 20-year plan for the transformation and regeneration of the town. The Luton Council and its partners have secured some £1.5 billion of investment to support sustainable growth through the creation of thousands of jobs, the delivery of new homes, infrastructure improvements and various other initiatives.

Some of the most high-profile recent developments in Luton have included the approval of plans to develop land close to the M1 motorway, to help pay for a new football stadium for Luton Town FC. The land will be used to accommodate Newlands Park, a mixed-use retail and leisure development.

A statement from Luton Town said the complex will “serve as a gateway to the town, improving the perception and standing of Luton across the country and internationally”. The football club added: “We are clear in the opinion that Newlands Park can make a tremendous positive contribution to the town’s vitality and local economy, both in real terms with thousands of new jobs created, and also in the way it generates many millions of pounds each year for the borough.”

Infrastructure improvements will include the £225 million Luton DART – driverless trains from Luton Airport Parkway Station to Luton Airport – and the £30 million update to the M1 Junction 10a to ease traffic to the airport and surrounding areas.

An enviable location. One of the most attractive aspects of Luton – for investors and residents alike – is its location. The town is situated right in the centre of an area known as the Golden Triangle, the three points of which are London and the world-famous university cities of Oxford and Cambridge. People living in Luton have easy access to all three of these prestigious and historic destinations, as well as other local highlights such as the Bicester Village shopping centre and the Chiltern Hills, which has been officially designated as an Area of Outstanding Natural Beauty.

These nearby attractions highlight how Luton can help its residents achieve an enjoyable work/life balance, with plenty of leisure opportunities in addition to the professional advantages that come with being so close to London.

The commuter effect. Being within such easy reach of London – and the countless business and employment opportunities the capital city offers – is undeniably a huge advantage for people living in Luton. It’s also a key factor for real estate investors who want to feel confident the properties in their portfolio will attract strong demand on the private rental market.

A key benefit for tenants and property buyers alike is that Luton’s transport links make it possible to reach central London in as little as 22 minutes, but housing and general living costs are considerably lower than in the capital. These advantages helped Luton secure its place at the top of estate agent Jackson-Stops’ latest list of the most attractive London commuter hotspots. It has now topped the ranking for two years in a row.

Student property opportunities. As well as providing a growing range of attractive living options for London commuters, Luton is developing into a key destination for the student market, an increasingly lucrative part of the investment property landscape that is attracting more attention from buyers.

Developments such as Opto Village, Park House and Chapel Street have expanded the range of available accommodation options for students at the University of Bedfordshire, and provided new opportunities for investors. Much like commuters, students will be drawn to Luton by the town’s balance of easy access to London and lower living costs.

For investors, the purpose-built student accommodation (PBSA) sector has attractive features such as higher-than-average yields and reliable demand from tenants. This asset class looks set to retain its appeal in the near future, largely because students from across Britain and overseas continue to show strong interest in studying in the UK. UCAS figures published in February 2019 showed that a record 38.8 per cent of 18-year-olds in England have applied to start a higher education course this year. Furthermore, Knight Frank’s student new housing development update for April 2019 highlighted a strong pipeline of student bed spaces, emphasising the resilience of the market despite challenges such as Brexit.

Bottomline. Taking all factors into account, it’s clear the student accommodation sector will continue to offer great potential for investors to secure regular returns and achieve capital growth in the years to come, and there are few locations better than Luton to realise these benefits.

You can also watch the Experience Invest video here: