Luton Research Report October 2018 By Strawberry Star Research

[email protected] | lu2on.com Table of Contents

Table of Contents...... 2 LU2ON...... 3 About Luton...... 5 Luton - a top London commuter town...... 5 Connectivity ...... 7 Planned Infrastructural Investments in Luton ...... 8 Employment ...... 9-10

Home Ownership and Affordability...... 11-12 Housing Sales Market...... 13-14 Luton Rental Market...... 15-16 Home Building Target and Activity...... 17-18 Luton Demographics...... 19 Economy and Policy...... 20 Impact of Government Policies...... 21 First time buyers and home movers...... 21 Investors...... 22

APPENDIX...... 23 Luton Regeneration...... 23-24 Luton Map - The Golden Triangle...... 25-26

1 2 Introduction

LU2ON

• 24/7 Concierge services • Solar panel A residential-led mixed use development by Strawberry Star Homes in Kimpton Road, Luton, close to • 24 hour CCTV • MVHR Ventilation system London Luton Airport. • Video entry system • Hyper-optic Connectivity

The development is just 200 metres from the Luton Airport Parkway Railway Station and comprises • Luxury and stylish interiors 785 residential units (suites, 1-bed & 2-bed apartments), including 8,400 sq. ft gym facility, • Restaurants and bars 49,600 ft retail space, over 200 hotel rooms and 10,000+ sq metres of attractive public realm and • Over 10,000 sq metres of attractive parking spaces. • Bicycle storage public realm, open spaces and • Storage / Recycling Centre landscaped gardens The residential development will be released in two phases with a target completion of Phase 1 • Secure parking in 2021. LU2ON is designed and modelled specifically for first-time buyers, young professionals • Provisions made to include commuting to work, home-movers, buy-to-let landlords, and international investors. • Multiple landscaped private supermarket, childcare and roof-top gardens pharmacy As a top London commuter belt town, Luton provides first-class infrastructure with high-speed travel into Central London, easy access to the M1, M6 and M25 motorways and Luton Airport, which offers connectivity to 30+ countries and over 140 destinations across Europe, Asia and Africa. • Boutique Retail Shops • 3 / 4 star Hotel As well as being at the heart of one of the region’s most important historic sites (the former • Convenience Stores factory, where some of Britain’s most iconic and best-loved cars were built), LU2ON is putting Luton’s most exciting new neighbourhood on the map.

3 4 About Luton - a top London commuter town

The Luton London connection is the result of a centuries-old relationship between the two locations. It all started with a mythical beast - the emblem of a griffin, which is visible throughout Luton. The creature of folklore was adopted as a logo by Vauxhall Motors. Scottish Engineer Alexander Wilson, who founded the company in Vauxhall, South London in 1857, took the name for his new business venture, bringing the griffin emblem back to its ancestral home of Luton and strengthening its long-standing link with London.

Luton is in an unrivalled position, located just 23 minutes by train and 30 miles drive to London. Luton’s combination of superb infrastructure, great transport access and an increasing skilled workforce makes it one of the UK’s best opportunities for business, investment and the property market. It also ranks 4th in the Top 10 Greenest Index, which focuses on UK towns and cities for environment and sustainability performance.

Located in the South East, Luton is surrounded by the Chilterns, designated as an Area of Outstanding Natural Beauty. Luton offers the best of both worlds - a modern town with excellent business opportunities and accommodation with a superb countryside on its doorstep, making it a wonderful place to live and work.

With a population of about 216,000 people, Luton has a very rich cultural heritage and diverse community and located within the famous ‘Golden Triangle’ of Cambridge, Oxford and London, encompassing Europe’s top universities. Luton boasts of top of the class amenities, most of which are within a short distance from LU20N. These include popular schools such as the internationally recognised University of and a host of outstanding primary and secondary schools. There are innumerable attractive parks, open spaces, shopping and recreation centres including golf courses, the popular Luton Cultural Quarter and Luton Shopping Centre, which are going through major improvements.

Properties in Luton outperform neighbouring towns and commuter towns with similar journey times to London, in terms of value for money, capital growth and investment returns.

Restaurants Bars/Pubs Schools - Each with Grade 1: 1. Cafe Shimla 11. George II Outstanding Ofsted Rating 2. Brasserie Azure 12. The 16. Tennyson Road Primary School 3. Villa Ada 13. The Great Northern (0.8 miles from LU2ON) 4. Monna Lisa 14. The White House 17. Hillborough Infant School 5. La Trattoria 15. Off the Wall Luton (1.1 miles from LU2ON) 6. Nakorn Thai 18. Crawley Green Infant School 7. Papa J’s (0.5 miles from LU2ON) 8. Desert’s Rose 19. Richmond Hill School 9. Steakout Luton (1.2 miles from LU2ON) 10. La Dolce Vita 20. Woodlands Secondary School (3.6 miles from the LU2ON) * The Luton DART is scheduled to open in 2021

London Central Terminus

Source: Strawberry Star Research / National Rail & Zoopla (Oct 2018) 5 6 Connectivity Planned Infastructural Investment in Luton • With three mainline rail stations, two M1 junctions and an international airport, Luton’s transport links are second to none • £200m investment to build a 2.1 mile ‘Direct • Only 23 minutes from London and a little over Air to Rail Transit (DART)’ driverless rail an hour from the Midlands by rail, Luton’s Connectivity Points LU2ON shuttle that will provide fast, frequent and Investments in Luton connections take people across the UK and reliable transfers for passengers between to Europe, including direct train links Luton Airport Parkway rail station and Luton to St Pancras International, where you can Airport Terminal in around 5 minutes, 24 catch the Eurostar to Paris, Amsterdam and hours a day. The DART is scheduled to become £1.5bn Brussels. Also, the newly launched Thameslink operational in 2021 railway, offers frequent direct train travel 23 Mins Planned regeneration and by train to London King’s Cross to other London termini and centres including • Luton Airport is currently undergoing a investment in Luton London Bridge, Blackfriars and London St. Pancras International £160m expansion that has the potential to Farringdon in less than an hour contribute £4.3bn to the UK economy by 2034, creating 70,000 jobs nationally, 42,000 jobs • Excellent road connections – newly-widened in Luton and over 18 million passengers per Luton DART M1, minutes from the M25 and a short distance year by 2020 Driverless trains from Luton Airport from the A1 Parkway Station to Luton Airport Direct Trains • Transformation of the Luton shopping centre • The Busway is a revolutionary transport link To London Bridge, Blackfriars and the Luton Cultural Quarter, which will that connects Luton, London Luton Airport, and London Farringdon contribute an additional £29m to the local and Houghton Regis. These routes economy and increase employment provide core services between Luton and Airport Expansion Dunstable every 7 minutes at peak times. • The area adjacent to LU2ON site is one of Potential to contribute This provides fast, frequent and reliable the only 24 areas in that secured £4.3 Billion to UK economy transport on the traffic-free guideway 2 Mins Walk an Enterprise Zone status (for priority between the two town centres in just 15 from LU2ON to Luton Airport economic growth ), with a catchment reach of minutes. The Busway is both flexible and 23 million people; higher than the London quick, providing efficient travel for both Parkway station Heathrow Enterprise Zone catchment area work and leisure Priority Economic • £1.5b investment in the next 20 years, that • London Luton Airport offers flights to more will create an estimated 18,500 jobs Growth Area than 140 destinations across Europe, Asia in Luton Enterprise Zone Status for and Africa major regeneration • Confidence in the Luton economy is also • According to the Luton Airport Guide, 15.7 boosted by the £350m investment in the Luton million passengers travelled through London Airport by the Australian company Luton Airport (LLA) in 2017, an 8.6% increase AMP Capital from 2016 • £30 million funded improvement to M1 • Fully connected to superfast broadband with a Junction 10a which will vastly improve coverage of 97.6% in Luton traffic flow to the airport and surrounding area Direct train connections (Luton to London) 37 mins London Farringdon By Train By Foot

Luton

45 mins London London Bridge 23 mins Kings Cross St. Pancras 41 mins Eurostar London Connection to Paris, Blackfriars Brussels & Amsterdam

7 89 Employment

A report from the Luton Functional Economic Market Area Study (LFEMAS), shows that Luton has a self- With a significant number of people from the containment rate of 63%, indicating that the labour market is more localised. Luton has a strong functional towns within the Luton housing market area commuting relationship with Central Bedfordshire, St. Albans and North Hertfordshire, with commuter flows commuting to London and with more people into Luton originating more from the north while flows out of Luton extends towards the south of Luton. The (37.7%) from Greater London drawn to Luton table below shows that there are more higher level professional occupations commuting into Luton than similar Airport, a residential scheme in Luton will be occupational level that are commuting out of Luton. marketable to people in these locations.

Table 2: Luton Commuter Statistics by Location in 2011 Luton is home to big companies, which are Employment in Luton contributing to the increasing trend in office Percentage of the 33,495 commuters out Percentage of the 34,400 commuters employment in Luton. Luton airport is the 50% major driver of the Luton economy and employs of Luton into Luton over 8,600 staf (which is over 10% of all 40% 42% employment in Luton). Due to the presence 35% 55% 30% of Luton Airport the likes of easyJet and 29% TUI have presence in luton. These companies Proportion of high level 20% as well as Vauxhall Motors, Luton Borough occupation commuters into Luton 19% Council, The NHS, University of Bedfordshire 8% and IBC Vehicles Limited employ over a 10% 6% 1% 2% thousand staff each. 34,000 HertfordshireWider BedfordshireBuckinghamshireNorthamptonshire HertfordshireWider BedfordshireNorthamptonshireNorthamptonshire Other high employers include Ernst and Young, Selex Galileo (BAE Systems), AstraZeneca, Blue Average number of Luton Arrow, Hewlett and Blondeau and Chargemaster. inbound commuters

Source: Strawberry Star Research using LEFMAS & ONS Census 2011 data Table 3: Luton Commuter Statistics by Occupation 18,500 Projected extra jobs in Luton 60% Out Commuters In Commuters 50% 55% 40% 45% 30% 31% 28% Semi-routine/ 20% Routine Higher Intermediate/ 24% Higher Higher Occupations Professional/ Small Employers/ Semi-routine/ Professional/ Professional/ 10% Managerial Lower Supervisory Routine Managerial Managerial Occupations Occupations Occupations Occupations Occupations 17%

Source: LEFMAS

Table 4: Commuting to London from Luton and near-by towns Number of people commuting Canary Wharf City of London Westminster into London from: Luton 160 680 1,100 Hertfordshire (exc. St. Albans) 2,360 11,300 15,050 Central Bedfordshire 270 1,400 1,900 Milton Keynes 220 710 1,400 Bedford 110 570 740 Buckinghamshire 680 3,000 6,500 St. Albans 640 3,500 3,250 Source: Strawberry Star Research using ONS Census 2011 data

9 10 Home Ownership & Affordability

• Average home* prices in Luton have now overtaken to-earnings ratio, Luton residents are more likely TABLE 5: Median gross anual earnings in 2017 £ the England average home prices. However, this to be able to afford a new home in Luton despite is still significantly below the average house the higher house price growth. Also, the rate at Home Ownership & price in the London commuter towns with similar which houses are becoming less affordable in Luton journey times as Luton and the towns along the is increasing at a slower rate (14%) than London Local Authority Work-place Residence affordability same train journey to London from Luton. At up to (49%) and the commuter towns near Luton based based 9 times the average earnings, housing in Luton is more affordable compared to neighbouring towns and • The proportion of dwellings occupied by their other London commuter towns owners in Luton increased from 63% in 2012 to Luton 32,000 28,796 64% in 2015. Home ownership in the neighbouring St. Albans 31,347 39,823 • Based on the median house price data from the boroughs and London declined in the same period 9.3x ONS, Luton house prices increased by 411% in the Stevenage 34,675 28,964 20 years to December 2017, 57% in the 5 years to • More people are moving to Luton as homes in Luton house price to earnings 2017 and 11% between 2016 and 2017, which are commuter towns near Luton continue to be less Watford 28,428 35,066 significantly more than the nearby commuter towns affordable. There is evidence that the Luton ratio better than London and housing market is fast developing, less saturated Enfield 28,843 30,920 other commuter towns • With a relatively lower median gross annual and has better scope for capital appreciation than Slough earnings (residence based), and lower house price- nearby commuter towns 32,047 28,743 Woking 32,748 35,909 Figure 1: Luton - Median house prices England 29,079 29,085 411% East 28,460 30,233 Luton house price increase over London 37,209 34,752 20 years to 2017 South East 30,219 31,664

Source: Strawberry Star Research using ONS data

Table 6: Percentage breakdown of dwelling stock by tenure

Source: Strawberry Star Research using ONS data

Figure 3: Luton - House Price to Earnings Ratio (Lower quartile - Residence based) 20.7% 18.4% 17.3% 26.1%

63.5% 51.1% 66.0% 69.1%

LUTON LONDON EAST SOUTH EAST Owner Occupied (%) Privately Rented (%)

Source: Strawberry Star Research using ONS data

* The terms home, homes, housing and house are used interchangably throughout this document and represent all residential property tenures. Source: Strawberry Star Research using ONS data

11 12 Housing Sales Market

Figure 8: New-build sales transaction volumes in Luton • Based on the Land Registry’s ‘price paid’ data, • Flats constitute 73% of all new-builds sold in average price paid for all residential properties 2017, reflecting greater supply of new-build in Luton has increased by 43% in the 10-year apartments than other tenures. Overall, semi- period from £280,000 in 2007 to £414,000 in detached houses (35%) still make-up the highest December 2017. This includes an 8% increase number of all property sales in Luton but flats between 2016 and 2017. New builds contributed to are catching up having moved from 19% in 2008 to an average of 29% price growth within the 10-year 25% in 2017, reflecting the changing demographics period • To better represent the growing influence and • The data reflects an increasing and greater significance of Luton housing market, Luton supply of new-build flats and a mis-match of has recorded significantly more growth in the demand and supply of detached houses volume of all new-build (786%) and apartments (158%) sold between 2013 and 2017, compared to • There were 3,283 units sold in 2017, which is an other London commuter towns with similar journey increase of 49% in the 10 year from 2008, and times. In fact, the commuter towns of St. Albans, an increase of 7% compared to the total sales Watford and Enfield, that are on the same train transactions in 2016. The number of flats sold journey into London, have witnessed a decline in increased by 96% during the 10-year period, more sales volume over the same period. This confirms than other tenures a demand shift towards Luton as housing in these neighbouring towns becomes increasingly less • Similarly, new builds sales transaction has affordable Source: Strawberry Star Research using Land Registry data increased by 441% over the 10-year period and 65% between 2016 and 2017, reflecting increased new- Figure 9: Changes in new-build sales volumes (2013 vs 2017) build activity compared to the previous years. New build sales make up only 14% off all sales transaction in 2017, increasing from 4% in 2007

Luton - Median house price growth to December 2017

Broxbourne

Welwyn Hatfield

North Hertfordshire

East Hertfordshire

East

South East 57% 11% England 411% Source: Strawberry Star Research using Land Registry data Stevenage Housing Sales Market St Albans 29% 441% 73% of Luton Price growth of Increase in new-build New-Builds 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% new-builds in the 10 sales transaction volume Sold in 2017 were Flats 5 Year Change 1 Year Change 20 Year Change year period to 2017 over 10 years to 2017

Source: Strawberry Star Research using Land Registry & ONS data

13 14 Luton Rental Market

Luton has been popular in various media reports as a top buy-to-let location in England, gaining the top spot The relatively lower house price, good rental for the third consecutive time since 2016, according to LendInvest in its July 2018 edition. With over 20% of value and huge capital gain, makes Luton a top the households living in private rental accommodation, Luton has a more vibrant rental market than the East hotspot for property investors. and South East regions of England, excluding London. This is mainly due to its younger population, proximity to London, affordability, employment cluster and good infrastructure and amenities. • Asking rental prices range from £400 per Luton Rental Market calendar month (pcm) in a shared town house to £1,000 pcm for 1 bed flat, £1,150pcm for 2 bed flat, £1,350pcm for 3 bed flat, Figure 10: Historic and projected average monthly rents paid by tenants (Rightmove, September 2018) 21% Luton - 2005 to 2022 (projected) • Average rental yield for all properties in of all properties in Luton are Luton LU2 post code, according to Zoopla, is occupied by private rentals 3.63%. This is even better for flats, with 1 bed flats achieving an average asking yield £925 of 4.6%, 4.8% for 2 bed flats and 5.62% for 3 bed flats 8.9% projected

• According to a report by Venture Residential in January 2018, Luton’s rent is projected to rental growth grow by 8.9% in the 5 years to 2022. However, in the five years to 2022 £875 LendInvest reported an annual rental growth of 3.7% in Luton, which is similar to London rental growth 3 year or Longer • The UK government have introduced longer £825 tenancies which are more family friendly to Tenancies provide better security for renters. This 35,000 tenants in the UK have will reduce voids related costs and improve benefitted from longer tenancies rental yield for investors. This policy has already seen the offer of 3-year or longer since the policy was introduced £775 tenancies being made available to 35,000 tenants across the country according to British Property Federation estimates £725

£675 05 07 09 11 13 15 17 19 21 2022

Source: Denton House Property Research

15 16 Home Building Activity Home Ownership & Demand for housing in Luton is projected to increase by 28% in the 27 years to 2045. This equates to 22,539 Also, net housing supply has increased to 798 additional homes by 2045. This means that Luton needs a target housing delivery that is equivalent to or units as at March 2017 compared to 624 units affordability average of 835 units per annum to meet the growing household population. House building starts are a good in 2016. This equates to net housing supply of indicator for measuring confidence in the housing market. The chart below shows that the number of new 418 units per annum in the six years to March house building started in Luton since January 2018 (360 units) has surpassed the total building starts in 2017, which is significantly below the target 2017. This reflects both the confidence in the Luton housing market and the increased demand for housing housing. that is mainly due to more people from the less affordable nearby commuter towns moving to Luton. 28% Projected increase in demand for

Figure 11: Housing (dwelling) demand projections in Luton housing in Luton by 2045 Luton: Housing (dwelling) Demand Projections (000s) Figure 13: Net Housing Additions in Luton 2001 - 2017

Luton: Net Housing Additions 798

556 624 525 547 399 468 412 376 360 351 214 210 213 187 190

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Strawberry Star Research using data from Forecasting Model: 2017 Source – Strawberry Star Research using data from DCLG

Figure 12: House building starts and completions in Luton 2001 – 2018

390 280 260 40 300 210 390 350 360 260 190 320 2001 2008 2011 2016 2017 2018 Housing Starts Housing Completions

Source – Strawberry Star Research using data from DCLG*

* Department for Communities and Local Government (DCLG)

17 18 Luton Demographics Economy & Policy

• With a population of about 216,000 people, With housing demand projected to increase by 28% in 2045, Luton’s economy is experiencing significant Luton’s population is projected to increase change in all aspects, including: by 15% between 2016 and 2041. This is higher than the population growths in the nearby Luton Demographics boroughs of St. Albans (14%), Broxbourne • Luton’s job workforce has grown by 20% between • Luton has the eighth highest business start-up (14%), South East (13%) and England (12%), 1997 and 2016. According to the Luton and rate (66.4) per 10,000 residents and a GVA per over the same period Central Bedfordshire Strategic Housing Market worker (52,498) that is higher than major cities Assessment 2015 report, about 11,300 extra jobs like Cambridge (49,777), Birmingham (48,422), • Over 65% of the Luton population, according 15% will be created in Luton between 2011 and 2031. Liverpool (48,831) and Newcastle (43,882) to ONS 2016 data is economically active. This has now been revised to 18,000 extra jobs projected population increase in due to the level of infrastructure development • According to The Centre for Cities, Luton has The active population (15 to 64 years) is the third youngest population in the UK, with an projected to increase by 11.3% in the 25 Luton by 2041 • With a higher labour productivity than the average age of 35.1 and the highest birth rate years to 2041. Also, with an average age of East of England and the UK, Luton outperforms of 17.9 for every 1,000 residents. This is a 35 years, Luton has the third youngest city neighbouring councils in terms of Gross Value younger population than the likes of London and population in the whole of UK, according a 35 years Added (GVA - a measure of economic activity) Cambridge and a birth rate that is higher than report by the Centre for Cities in 2018 per employment job figure and GVA per capita, the UK average (11.8). This partly explains the average age of Luton’s reflecting high value activities higher population growth projections • The total households in Luton are projected population, making Luton the to increase by 37% between 2014 and 2039. • The employment trend in Luton is shifting third youngest city population This is equivalent to an average of an towards office jobs with steady increases in the additional 1,139 households per annum in the UK administrative and professional services over the 25 year period. This validates the additional housing requirements per annum mentioned above that are required to accommodate the increasing Luton population 37% Table 13: Economic Indicators - Others projected increase in the number of households in Luton by 2039 Indicators Luton(%) East(%) Great Britain(%)

All People Aged 16-64 in 2017 63.5 61.3 62.9 Table 9: Population projection (’000) 2014 - 2039 Economically Active + (Apr 2017 - Mar 2018) 74.5 80.7 78.4 In Employment 70.0 77.6 75.0 AREA 2016 2041 %Growth %Active in 2041 Unemployed (Model-Based) 5.6 3.7 4.3 England 55,268 61,952 12% 59% Percentage of Households that are workless 11.0 12.5 14.5

Luton 216 249 15% 63% Employed by occupation (Apr 2017-Mar 2018)

South East 9,030 10,236 13% 58% 1 Managers, Directors & Senior Officials 7.1 12.2 10.8 Source – Strawberry Star Research using data from ONS (2016-based subnational population projections) 2 Professional Occupations 14.2 19.0 20.3 3 Associate Professional & Technical 12.8 14.8 14.5

4 Administrative & Secretarial 10.7 10.7 10.3

5 Skilled Trades Occupations 11.6 10.7 10.2

6 Caring, Leisure & Other Service Occupations 8.8 8.8 9.0

7 Sales & Customer Service Occupations 7.7 7.4 7.6

8 Process Plant & Machine Operatives 11.0 6.3 6.3

9 Elementary Occupations 15.5 9.9 10.5

No Qualifications at 16-64 (2017) 12.9 7.2 7.7

Residence based earnings Full-Time Workers (2017) 532.2 574.9 552.7

Workplace based earnings Full-Time Workers (2017) 592.6 545.5 552.3

Jobs Density (Ratio of total jobs to population aged 16-64) 0.78 0.83 0.84

Source: Strawberry Star Research using data from ONS and The centre for Cities

19 20 Impact of Government Policies First Time Buyers and Home Movers Investors

• Help to Buy Equity Loan: The government’s help- • In Luton, only 288 properties were sold in the • Stamp Duty on Additional Property: Luton • Higher rate for additional dwelling (HRAD) to-buy equity loan has made it cheaper for some same period under the help-to-buy scheme, which is one of the most popular locations for data from the ONS, show that one-third of the home buyers to get on to the property ladder accounts for an average of 41% of the annual new- property investors despite the introduction Luton residential property purchases relates to in terms of the amount of deposit required. build property sales from 2014 to 2017. Our data of higher rate tax on additional properties, either purchases of second homes or purchases The help-to-buy scheme has contributed to the show a declining number of help-to-buy equity the restrictions on the mortgage interest tax by investors. HRAD was introduced in April 2016 development and the sale of new build properties loans relative to the volume of new-build sales. relief, stricter lending criteria, recent and applies to purchases of second homes and across England The proportion of help-to-buy to the new-build interest rate hike and the uncertainty buy-to-let properties sales volume has declined from 62% in 2014 to over Brexit • A total of 169,102 properties were sold across 13% in 2017. Flats make up only 18.4% of all the • This is an increase of 33.3% in the total England under the help-to-buy scheme between help-to-buy sales in Luton. This implies that • The increasing popularity of Luton as a number of Luton properties purchased by quarter 2 of 2013 and quarter 1 of 2018. About less people use the help-to-buy scheme to buy hotspot for property investors is mainly due investors between 2016/17 and 2017/18. This 81% of these properties were purchased by first apartments in Luton as they are more affordable to some location based factors such as cheaper implies that Luton investors are not deterred time buyers than houses average property price, high rental values and by the buy-to-let policy restrictions unlike in rental growth, higher rental yield and capital some UK towns that have witnessed a decline of Figure 15: Number of Help to Buy transactions from Q2 in 2013 to Q4 in 2017 appreciation. Luton investors are also taking the buy-to-let property investment. The high advantage of the town’s proximity to London, proportion of the purchases by investors in good infrastructure, employment cluster, Luton has placed Luton in the top 10 locations increasing young population and Luton being a for property investors in the whole of England. university town Other locations with similar high proportion are mostly university towns • The UK pound and interest rates have been at their lowest levels despite the recent • Other than the foreign investors, residents interest rate hike and the residential property from neighbouring towns are more likely to investment is seen by many as less volatile invest in a second home or buy-to-let property and less risky compared to other asset classes in Luton than Luton residents. This is because with high return potential. There is also the neighbouring towns such as St. Albans, availability of interest-only mortgages. These Watford, Dacorum and East Hertfordshire, have factors have made investment in residential significantly higher gross household disposable property attractive to local and foreign income per head than Luton residents and live investors with high disposable income nearer to Luton than residents from other and wealth regions

Source – Strawberry Star Research using ONS data (Number of help to buy equity loans.)

• Stamp Duty Tax Relief for First Time Buyers: • Because of their relatively low income, Luton Since the introduction of the first time buyer residents may require the help-to-buy equity loan Table 15: Property Transactions 2016 - 2018 relief (FTBR) on stamp duty tax in November supported by the FTBR savings to purchase the 2017, eligible FTBR transaction (purchases from Lu2on properties Total additional Proportion of Estimated value £125,000 to £500,000) contributed to about 28% of properties total residential (aditional all residential transactions in Luton, thereby Financial Year transactions transactions properties) £’m saving first time buyers an average of £2,550 2016/17 840 25% 170 Table 14: First Time Buyers Relief (FTBR) transactions of £40,000 or above in 2017-2018 2017/18 1,120 31% 250 30% Source – Strawberry Star Research using ONS data (Additional dwellings transactions & receipts by Local Authority) 25% 20% 28% 25% Impact of Government Policies 15% 17% 10% 169,102 41% 5% 10% 8% 6% Number of properties sold in England proportion of new-build sales in 0% LUTON INNER LONDON OUTER LONDON under the Help to Buy Scheme from Q2 Luton using Help to Buy from 2013 FTBR Transactions % of residential transactions since announcement (22 November 2017) FTBR Transactions % of residential transactions over whole Financial Year 2013 to Q1 2018 to Q1 2018

Source – Strawberry Star Research using ONS data (First time buyers’ relief (FTBR) transactions of £40,000 or above, 2017-18) 21 22 Luton Regeneration

As part of a wider regeneration of the area, Some of the regeneration highlights include Luton Borough Council has launched an ambitious Butterfield Business Park (Henry Boot £1.5 billion inward investment programme aimed at Developments), the DART rail line, Sloane completely transforming the town over the next 20 International luxury apartments and Power Court years. Luton, working in partnership with major (British Land), as well as major upgrades to The investors and developers on a number of schemes, Luton Mall, High Town area and a new football including a 395-acre Enterprise Zone, is attracting stadium. attention from many businesses.

Direct Air to Rail Transit (DART) Business Park A new £200 million Direct Air to Rail A new industrial warehouse development Transit system will enable passengers to is coming soon to Butterfield Business travel seamlessly to and from the London Park. The Park supports a diverse range Luton Airport terminal and Luton Airport of businesses to immediately benefit Parkway station via a more sustainable from its nationally strategic location and efficient means of transport. From and competitive cost base with a dynamic 2020, the service will significantly l o c a l e c o n o m y. reduce the journey time from Central London to London Luton airport to about 30 minutes, making it quicker than both Stansted and Gatwick.

Luton Mall upgrade The Luton Mall is a 1 million sqft shopping centre in the heart of Luton Luton Cultural Quarter (LCQ) with 122 retailers, over 2,000 employees, circa 21 million visitors and £227 Luton Cultural Quarter (LCQ) is a growing million gross sales annually. A £7 cluster of creative and independent million upgrade is in progress to create businesses, arts venues, restaurants, family zone, kids play, feast street, public art and out-door events. Over the entrance enhancements and mall ambience. next four years Luton Culture, a local arts charity, plans to build on the town’s hat-making and manufacturing heritage and create 2400 sqft of new workspace for creative practitioners, artists, media companies, makers, producers and designers in the LCQ.

New football stadium Luton Airport Enterprise Zone New state-of-the-art stadium, Power Court, will come up in Luton town Luton Airport Enterprise Zone, around 395 acres in centre in addition to the 17,500 – size, will consist of three linked sites surrounding 23,000-seater iconic stadium to support Luton Airport: Bartlett Square, Century Park and the club’s football ambitions. The Airport Business Park. This significant investment High Town transformation £200 million mixed-use development opportunity is being delivered by Luton Council in scheme proposals being pursued would partnership with London Luton Airport Limited and The historic High Town area of Luton include venues for live sport and will be transformed into a vibrant music, further leisure alongside an South East Midlands Local Enterprise Partnership neighbourhood with a complementary mix appropriate scale of lifestyle retail (SEMLEP), and will create in the region of 10,000 jobs. of residential, public realm, retail and facilities, residential apartments and commercial activities. other valuable amenities.

23 24 Luton Map - The

St Neots Golden Triangle

Cambridge Luton has the advantage of being within the ‘Golden Bedford Triangle’ of Cambridge, Oxford and London, which is Towcester Birmingham New Street home to world’s top universities. Lavenham Station Biggleswade Melbourn Haverhill Cambridge Banbury Milton Keynes Just 40 miles from Luton is theSudbury university city of Cambridge, home to more than 18,000 students from all walks of life and all corners of the world, Buckingham Letchworth over 11,000 staff, 31 Colleges and 150 Departments, Garden City Faculties, Schools and other institutions. There are over dozen daily bus service between Luton and Cambridge.

Bicester / Bicester Villiage Bishops Stevenage Stortford Oxford 23 mins to Braintree The collegiate research university of Oxford is just King’s Cross 37 miles from Luton. Home to 38 colleges with 24,000 St. Pancras students, including 11,747 undergraduates and 11,687 postgraduates, from more than 150 countries, Oxford A418 employs in excess of 13,600 people. Daily buses Oxford connect Luton and Oxford in a journey time of 1h35m.

Harlow Bicester village

This luxury destination, 42.6 miles from Luton, is home to more than 160 boutiques of world-famous brands, each offering exceptional value with savings of up to 60% on the recommended retail price all year round. Together with a selection of restaurants Watford and cafés, the Village offers luxury services that include Valet Parking, Hands-free Shopping, the Didcot award-winning Bicester Visitor Centre, and onsite tax refund and money change service. Bicester Village is easily accessible from Luton with regular bus, train and taxi services.Basildon

Ilford

Slough

Windsor London Reading Dartford

Bracknell

Croydon Rochester

Epsom

25 26 DISCLAIMER Information in this document was compiled using data from various reliable official sources with care to give a fair description but we cannot guarantee their accuracy. Images are computer generated and are for illustrative purposes only. All development CGIs and artwork contained in this report are subject to copyright of the developer. This report is prepared for the exclusive use of the media to highlight Luton as an important housing market but does not constitute investment advice.

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