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Research Report October 2018By Strawberry Star Research

Luton

21

Luton - a top London commuter town..................5

Connectivity .......................................7

Planned Infrastructural Investments in Luton ...... 8

Employment ..................................... 9-10

First time buyers and home movers..................21

Investors..........................................22

Table of Contents............................2

Home Ownership and Affordability........11-12

LU2ON.......................................3

Housing Sales Market...................13-14

About Luton............................... 5

Economy and Policy........................ 20

Impact of Government Policies............. 21

Luton Rental Market....................15-16Home Building Target and Activity.......17-18Luton Demographics........................19

APPENDIX..................................23

Table of Contents

Luton Regeneration..............................23-24

Luton Map - The Golden Triangle.................25-26

43

A residential-led mixed use development by Strawberry Star Homes in Kimpton Road, Luton, close to London Luton Airport.

The development is just 200 metres from the Luton Airport Parkway Railway Station and comprises 785 residential units (suites, 1-bed & 2-bed apartments), including 8,400 sq. ft gym facility, 49,600 ft retail space, over 200 hotel rooms and 10,000+ sq metres of attractive public realm and parking spaces.

The residential development will be released in two phases with a target completion of Phase 1 in 2021. LU2ON is designed and modelled specifically for first-time buyers, young professionals commuting to work, home-movers, buy-to-let landlords, and international investors.

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.

As well as being at the heart of one of the region’s most important historic sites (the former Vauxhall Motors 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.

• Provisions made to include supermarket, childcare and pharmacy

LU2ON

Introduction

• 24/7 Concierge services• 24 hour CCTV• Video entry system

• Luxury and stylish interiors• Restaurants and bars

• Bicycle storage • Storage / Recycling Centre• Secure parking

• Multiple landscaped private roof-top gardens

• Boutique Retail Shops• 3 / 4 star Hotel• Convenience Stores

• Solar panel• MVHR Ventilation system• Hyper-optic Connectivity

• Over 10,000 sq metres of attractive public realm, open spaces and landscaped gardens

65

* The Luton DART is scheduled to open in 2021

Restaurants1. Cafe Shimla 2. Brasserie Azure 3. Villa Ada 4. Monna Lisa 5. La Trattoria 6. Nakorn Thai 7. Papa J’s 8. Desert’s Rose 9. Steakout Luton 10. La Dolce Vita

Bars/Pubs11. George II12. The Black Horse13. The Great Northern14. The White House15. Off the Wall Luton

Schools - Each with Grade 1: Outstanding Ofsted Rating16. Tennyson Road Primary School (0.8 miles from LU2ON)17. Hillborough Infant School(1.1 miles from LU2ON) 18. Crawley Green Infant School(0.5 miles from LU2ON)19. Richmond Hill School(1.2 miles from LU2ON)20. Woodlands Secondary School (3.6 miles from the LU2ON)

London Central Terminus

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.

Source: Strawberry Star Research / National Rail & Zoopla (Oct 2018)

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 Bedfordshire 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.

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Connectivity Points LU2ON

23 Mins by train to London King’s Cross St. Pancras International

Direct Trains To London Bridge, Blackfriars and London Farringdon

2 Mins Walkfrom LU2ON to Luton Airport Parkway station

• With three mainline rail stations, two M1 junctions and an international airport, Luton’s transport links are second to none

• Only 23 minutes from London and a little over an hour from the Midlands by rail, Luton’s connections take people across the UK and to Europe, including direct train links to St Pancras International, where you can catch the Eurostar to Paris, Amsterdam and Brussels. Also, the newly launched Thameslink railway, offers frequent direct train travel to other London termini and centres including London Bridge, Blackfriars and London Farringdon in less than an hour

• Excellent road connections – newly-widened M1, minutes from the M25 and a short distance from the A1

• The Busway is a revolutionary transport link that connects Luton, London Luton Airport, Dunstable and Houghton Regis. These routes provide core services between Luton and Dunstable every 7 minutes at peak times. This provides fast, frequent and reliable transport on the traffic-free guideway between the two town centres in just 15 minutes. The Busway is both flexible and quick, providing efficient travel for both work and leisure

• London Luton Airport offers flights to more than 140 destinations across Europe, Asia and Africa

• According to the Luton Airport Guide, 15.7 million passengers travelled through London Luton Airport (LLA) in 2017, an 8.6% increase from 2016

• Fully connected to superfast broadband with a coverage of 97.6% in Luton

9

London Kings Cross St. Pancras

London Bridge

London Blackfriars

Luton

Eurostar Connection to Paris, Brussels & Amsterdam

41 mins

37 mins

45 mins

23 mins

Connectivity Planned InfastructuralInvestment in Luton

• £200m investment to build a 2.1 mile ‘Direct Air to Rail Transit (DART)’ driverless rail shuttle that will provide fast, frequent and reliable transfers for passengers between Luton Airport Parkway rail station and Luton Airport Terminal in around 5 minutes, 24 hours a day. The DART is scheduled to become operational in 2021

• Luton Airport is currently undergoing a £160m expansion that has the potential to contribute £4.3bn to the UK economy by 2034, creating 70,000 jobs nationally, 42,000 jobs in Luton and over 18 million passengers per year by 2020

• Transformation of the Luton shopping centre and the Luton Cultural Quarter, which will contribute an additional £29m to the local economy and increase employment

• The area adjacent to LU2ON site is one of the only 24 areas in England that secured an Enterprise Zone status (for priority economic growth ), with a catchment reach of 23 million people; higher than the London Heathrow Enterprise Zone catchment area

• £1.5b investment in the next 20 years, that will create an estimated 18,500 jobs in Luton

• Confidence in the Luton economy is also boosted by the £350m investment in the Luton Airport by the Australian company AMP Capital

• £30 million funded improvement to M1 Junction 10a which will vastly improve traffic flow to the airport and surrounding area

Investments in Luton

£1.5bn Planned regeneration and investment in Luton

Luton DARTDriverless trains from Luton Airport Parkway Station to Luton Airport

Airport ExpansionPotential to contribute£4.3 Billion to UK economy

Priority Economic Growth Area Enterprise Zone Status for major regeneration

London Farringdon

Direct train connections (Luton to London)

By Train

By Foot

109

A report from the Luton Functional Economic Market Area Study (LFEMAS), shows that Luton has a self-containment rate of 63%, indicating that the labour market is more localised. Luton has a strong functional commuting relationship with Central Bedfordshire, St. Albans and North Hertfordshire, with commuter flows into Luton originating more from the north while flows out of Luton extends towards the south of Luton. The table below shows that there are more higher level professional occupations commuting into Luton than similar occupational level that are commuting out of Luton.

Source: Strawberry Star Research using ONS Census 2011 data

Percentage of the 33,495 commuters out of Luton

Percentage of the 34,400 commuters into Luton

Out Commuters

Higher Professional/Managerial

Occupations

Intermediate/Small Employers/

Lower SupervisoryOccupations

Semi-routine/Routine

Occupations

Semi-routine/Routine

OccupationsHigher Professional/Managerial

Occupations

Higher Professional/Managerial

Occupations

In Commuters

50%

40%

30%

20%

10%

60%

50%

40%

30%

20%

10%

Hertfordshire

Hertfordshire

Buckinghamshire

Wider Bedfordshire

Wider Bedfordshire

Northamptonshire

Northamptonshire

Northamptonshire

35%29%

8%1%

19%

42%

6% 2%

Number of people commutinginto London from:

Canary Wharf City of London Westminster

Luton 160 680 1,1002,360 11,300 15,050

270 1,400 1,900220 710 1,400110 570 740680 3,000 6,500640 3,500 3,250

Hertfordshire (exc. St. Albans)

Central Bedfordshire

Milton Keynes

Bedford

Buckinghamshire

St. Albans

Table 4: Commuting to London from Luton and near-by towns

45%

31%24%

55%

28%

17%

Employment in Luton

55% Proportion of high level occupation commuters into Luton

34,000 Average number of Luton inbound commuters

18,500Projected extra jobs in Luton

With a significant number of people from the towns within the Luton housing market area commuting to London and with more people (37.7%) from Greater London drawn to Luton Airport, a residential scheme in Luton will be marketable to people in these locations.

Luton is home to big companies, which are contributing to the increasing trend in office employment in Luton. Luton airport is the major driver of the Luton economy and employs over 8,600 staf (which is over 10% of all employment in Luton). Due to the presence of Luton Airport the likes of easyJet and TUI have presence in luton. These companies as well as Vauxhall Motors, Luton Borough Council, The NHS, University of Bedfordshire and IBC Vehicles Limited employ over a thousand staff each. Other high employers include Ernst and Young, Selex Galileo (BAE Systems), AstraZeneca, Blue Arrow, Hewlett and Blondeau and Chargemaster.

Table 2: Luton Commuter Statistics by Location in 2011

Table 3: Luton Commuter Statistics by Occupation

Source: Strawberry Star Research using LEFMAS & ONS Census 2011 data

Source: LEFMAS

Employment

1211

• Average home* prices in Luton have now overtaken the England average home prices. However, this is still significantly below the average house price in the London commuter towns with similar journey times as Luton and the towns along the same train journey to London from Luton. At up to 9 times the average earnings, housing in Luton is more affordable compared to neighbouring towns and other London commuter towns

• Based on the median house price data from the ONS, Luton house prices increased by 411% in the 20 years to December 2017, 57% in the 5 years to 2017 and 11% between 2016 and 2017, which are significantly more than the nearby commuter towns

• With a relatively lower median gross annual earnings (residence based), and lower house price-

to-earnings ratio, Luton residents are more likely to be able to afford a new home in Luton despite the higher house price growth. Also, the rate at which houses are becoming less affordable in Luton is increasing at a slower rate (14%) than London (49%) and the commuter towns near Luton

• The proportion of dwellings occupied by their owners in Luton increased from 63% in 2012 to 64% in 2015. Home ownership in the neighbouring boroughs and London declined in the same period

• More people are moving to Luton as homes in commuter towns near Luton continue to be less affordable. There is evidence that the Luton housing market is fast developing, less saturated and has better scope for capital appreciation than nearby commuter towns

Home Ownership & affordability

9.3x Luton house price to earnings

ratio better than London and

other commuter towns

411% Luton house price increase over

20 years to 2017

Figure 1: Luton - Median house prices

Source: Strawberry Star Research using ONS data

Figure 3: Luton - House Price to Earnings Ratio (Lower quartile - Residence based)

Local Authority Work-placebased

Residencebased

Luton 32,000 28,79631,347 39,82334,675 28,96428,428 35,06628,843 30,92032,047 28,74332,74829,07928,46037,20930,219

35,90929,08530,23334,75231,664

St. Albans

Stevenage

Watford

Enfield

Slough

Woking

East

England

London

South East

Source: Strawberry Star Research using ONS data

TABLE 5: Median gross anual earnings in 2017 £

20.7%26.1%

18.4% 17.3%

LUTON LONDON EAST SOUTH EAST

Owner Occupied (%) Privately Rented (%)

Source: Strawberry Star Research using ONS data

Table 6: Percentage breakdown of dwelling stock by tenure

63.5% 51.1% 66.0% 69.1%

Home Ownership & Affordability

* 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

1413

• Based on the Land Registry’s ‘price paid’ data, average price paid for all residential properties in Luton has increased by 43% in the 10-year period from £280,000 in 2007 to £414,000 in December 2017. This includes an 8% increase between 2016 and 2017. New builds contributed to an average of 29% price growth within the 10-year period

• The data reflects an increasing and greater supply of new-build flats and a mis-match of demand and supply of detached houses

• There were 3,283 units sold in 2017, which is an increase of 49% in the 10 year from 2008, and an increase of 7% compared to the total sales transactions in 2016. The number of flats sold increased by 96% during the 10-year period, more than other tenures

• Similarly, new builds sales transaction has increased by 441% over the 10-year period and 65% between 2016 and 2017, reflecting increased new-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

• Flats constitute 73% of all new-builds sold in 2017, reflecting greater supply of new-build apartments than other tenures. Overall, semi-detached houses (35%) still make-up the highest number of all property sales in Luton but flats are catching up having moved from 19% in 2008 to 25% in 2017, reflecting the changing demographics

• To better represent the growing influence and significance of Luton housing market, Luton has recorded significantly more growth in the volume of all new-build (786%) and apartments (158%) sold between 2013 and 2017, compared to other London commuter towns with similar journey times. In fact, the commuter towns of St. Albans, Watford and Enfield, that are on the same train journey into London, have witnessed a decline in sales volume over the same period. This confirms a demand shift towards Luton as housing in these neighbouring towns becomes increasingly less affordable

29%Price growth of

new-builds in the 10

year period to 2017

73% of New-BuildsSold in 2017 were Flats

441% Increase in new-build

sales transaction volume

over 10 years to 2017

Broxbourne

Welwyn Hatfield

North Hertfordshire

East Hertfordshire

East

South East

England

Stevenage

St Albans

Luton

Figure 8: New-build sales transaction volumes in Luton

Figure 9: Changes in new-build sales volumes (2013 vs 2017)

Source: Strawberry Star Research using Land Registry data

Source: Strawberry Star Research using Land Registry data

Housing Sales Market

0% 50% 100% 150% 200% 250% 300% 350% 400% 450%

5 Year Change 1 Year Change 20 Year Change

57% 11% 411%

Luton - Median house price growth to December 2017

Source: Strawberry Star Research using Land Registry & ONS data

Housing Sales Market

1615

The relatively lower house price, good rental value and huge capital gain, makes Luton a top hotspot for property investors.

• Asking rental prices range from £400 per 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, (Rightmove, September 2018)

• Average rental yield for all properties in Luton LU2 post code, according to Zoopla, is 3.63%. This is even better for flats, with 1 bed flats achieving an average asking yield of 4.6%, 4.8% for 2 bed flats and 5.62% for 3 bed flats

• According to a report by Venture Residential in January 2018, Luton’s rent is projected to grow by 8.9% in the 5 years to 2022. However, LendInvest reported an annual rental growth of 3.7% in Luton, which is similar to London rental growth

• The UK government have introduced longer tenancies which are more family friendly to provide better security for renters. This will reduce voids related costs and improve rental yield for investors. This policy has already seen the offer of 3-year or longer tenancies being made available to 35,000 tenants across the country according to British Property Federation estimates

Luton Rental Market

21% of all properties in Luton are occupied by private rentals

in the five years to 2022

8.9% projected rental growth

3 year or Longer Tenancies35,000 tenants in the UK have benefitted from longer tenancies since the policy was introduced

Figure 10: Historic and projected average monthly rents paid by tenants

Luton - 2005 to 2022 (projected)

£925

£875

£825

£775

£725

£67505 07 09 11 13 15 17 19 21 2022

Source: Denton House Property Research

Luton has been popular in various media reports as a top buy-to-let location in England, gaining the top spot for the third consecutive time since 2016, according to LendInvest in its July 2018 edition. With over 20% of the households living in private rental accommodation, Luton has a more vibrant rental market than the East 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.

Luton Rental Market

1817

Luton: Housing (dwelling) Demand Projections (000s)

Demand for housing in Luton is projected to increase by 28% in the 27 years to 2045. This equates to 22,539 additional homes by 2045. This means that Luton needs a target housing delivery that is equivalent to or average of 835 units per annum to meet the growing household population. House building starts are a good indicator for measuring confidence in the housing market. The chart below shows that the number of new house building started in Luton since January 2018 (360 units) has surpassed the total building starts in 2017. This reflects both the confidence in the Luton housing market and the increased demand for housing that is mainly due to more people from the less affordable nearby commuter towns moving to Luton.

Also, net housing supply has increased to 798 units as at March 2017 compared to 624 units in 2016. This equates to net housing supply of 418 units per annum in the six years to March 2017, which is significantly below the target housing.

Figure 11: Housing (dwelling) demand projections in Luton

Strawberry Star Research using data from East of England Forecasting Model: 2017

390 260 350 190 320 36040 300 280

210260

390

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

2001 2008 2011 2016 2017 2018

Housing Starts Housing Completions

Source – Strawberry Star Research using data from DCLG*

Luton: Net Housing Additions

2001-02

2009-10

2005-06

2013-14

2003-04

2011-12

2007-08

2015-16

2002-03

2010-11

2006-07

2014-15

2004-05

2012-13

2008-09

2016-17

Source – Strawberry Star Research using data from DCLG

210 213

525 547 556

399 468 412 376214

360 351

187 190

624

798

Figure 13: Net Housing

Additions in Luton 2001 - 2017

Home Ownership & affordability

28%Projected increase in demand for

housing in Luton by 2045

Home Building Activity

* Department for Communities and Local Government (DCLG)

2019

• With a population of about 216,000 people, Luton’s population is projected to increase by 15% between 2016 and 2041. This is higher than the population growths in the nearby boroughs of St. Albans (14%), Broxbourne (14%), South East (13%) and England (12%), over the same period

• Over 65% of the Luton population, according to ONS 2016 data is economically active. The active population (15 to 64 years) is projected to increase by 11.3% in the 25 years to 2041. Also, with an average age of 35 years, Luton has the third youngest city population in the whole of UK, according a report by the Centre for Cities in 2018

• The total households in Luton are projected to increase by 37% between 2014 and 2039. This is equivalent to an average of an additional 1,139 households per annum over the 25 year period. This validates the additional housing requirements per annum mentioned above that are required to accommodate the increasing Luton population

Luton Demographics

15% projected population increase in Luton by 2041

35 years average age of Luton’s population, making Luton the third youngest city population in the UK

37%projected increase in the number of households in Luton by 2039

AREA 2016 2041 %Growth %Active in 2041

England

Luton

South EastSource – Strawberry Star Research using data from ONS (2016-based subnational population projections)

Table 9: Population projection (’000) 2014 - 2039

• Luton’s job workforce has grown by 20% between 1997 and 2016. According to the Luton and Central Bedfordshire Strategic Housing Market Assessment 2015 report, about 11,300 extra jobs will be created in Luton between 2011 and 2031. This has now been revised to 18,000 extra jobs due to the level of infrastructure development

• With a higher labour productivity than the East of England and the UK, Luton outperforms neighbouring councils in terms of Gross Value Added (GVA - a measure of economic activity) per employment job figure and GVA per capita, reflecting high value activities

• The employment trend in Luton is shifting towards office jobs with steady increases in the administrative and professional services

• Luton has the eighth highest business start-up rate (66.4) per 10,000 residents and a GVA per worker (52,498) that is higher than major cities like Cambridge (49,777), Birmingham (48,422), Liverpool (48,831) and Newcastle (43,882)

• According to The Centre for Cities, Luton has the third youngest population in the UK, with an average age of 35.1 and the highest birth rate of 17.9 for every 1,000 residents. This is a younger population than the likes of London and Cambridge and a birth rate that is higher than the UK average (11.8). This partly explains the higher population growth projections

With housing demand projected to increase by 28% in 2045, Luton’s economy is experiencing significant change in all aspects, including:

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

63.574.570.05.611.0

7.114.212.810.711.68.87.711.015.512.9532.2592.60.78

61.380.777.63.712.5

12.219.014.810.710.78.87.46.39.97.2

574.9545.50.83

62.978.475.04.3

14.5

10.820.314.510.310.29.07.66.3

10.57.7

552.7552.30.84

All People Aged 16-64 in 2017

Economically Active + (Apr 2017 - Mar 2018)

In Employment

Unemployed (Model-Based)

Percentage of Households that are workless

Employed by occupation (Apr 2017-Mar 2018)

1 Managers, Directors & Senior Officials

2 Professional Occupations

3 Associate Professional & Technical

4 Administrative & Secretarial

5 Skilled Trades Occupations

6 Caring, Leisure & Other Service Occupations

7 Sales & Customer Service Occupations

8 Process Plant & Machine Operatives

9 Elementary Occupations

No Qualifications at 16-64 (2017)

Residence based earnings Full-Time Workers (2017) Workplace based earnings Full-Time Workers (2017) Jobs Density (Ratio of total jobs to population aged 16-64)

Indicators Luton(%) East(%) Great Britain(%)

Table 13: Economic Indicators - Others

Luton Demographics Economy & Policy

55,268

216

9,030

61,952

249

10,236

12%

15%

13%

59%

63%

58%

2221

• Help to Buy Equity Loan: The government’s help-to-buy equity loan has made it cheaper for some home buyers to get on to the property ladder in terms of the amount of deposit required. The help-to-buy scheme has contributed to the development and the sale of new build properties across England

• A total of 169,102 properties were sold across England under the help-to-buy scheme between quarter 2 of 2013 and quarter 1 of 2018. About 81% of these properties were purchased by first time buyers

• In Luton, only 288 properties were sold in the same period under the help-to-buy scheme, which accounts for an average of 41% of the annual new-build property sales from 2014 to 2017. Our data show a declining number of help-to-buy equity loans relative to the volume of new-build sales. The proportion of help-to-buy to the new-build sales volume has declined from 62% in 2014 to 13% in 2017. Flats make up only 18.4% of all the help-to-buy sales in Luton. This implies that less people use the help-to-buy scheme to buy apartments in Luton as they are more affordable than houses

First Time Buyers and Home Movers

• Stamp Duty Tax Relief for First Time Buyers: Since the introduction of the first time buyer relief (FTBR) on stamp duty tax in November 2017, eligible FTBR transaction (purchases from £125,000 to £500,000) contributed to about 28% of all residential transactions in Luton, thereby saving first time buyers an average of £2,550

• Because of their relatively low income, Luton residents may require the help-to-buy equity loan supported by the FTBR savings to purchase the Lu2on properties

• Stamp Duty on Additional Property: Luton is one of the most popular locations for property investors despite the introduction of higher rate tax on additional properties, the restrictions on the mortgage interest tax relief, stricter lending criteria, recent interest rate hike and the uncertainty over Brexit

• The increasing popularity of Luton as a hotspot for property investors is mainly due to some location based factors such as cheaper average property price, high rental values and rental growth, higher rental yield and capital appreciation. Luton investors are also taking advantage of the town’s proximity to London, good infrastructure, employment cluster, increasing young population and Luton being a university town

• The UK pound and interest rates have been at their lowest levels despite the recent interest rate hike and the residential property investment is seen by many as less volatile and less risky compared to other asset classes with high return potential. There is also the availability of interest-only mortgages. These factors have made investment in residential property attractive to local and foreign investors with high disposable income and wealth

• Higher rate for additional dwelling (HRAD) data from the ONS, show that one-third of the Luton residential property purchases relates to either purchases of second homes or purchases by investors. HRAD was introduced in April 2016 and applies to purchases of second homes and buy-to-let properties

• This is an increase of 33.3% in the total number of Luton properties purchased by investors between 2016/17 and 2017/18. This implies that Luton investors are not deterred by the buy-to-let policy restrictions unlike in some UK towns that have witnessed a decline of the buy-to-let property investment. The high proportion of the purchases by investors in Luton has placed Luton in the top 10 locations for property investors in the whole of England. Other locations with similar high proportion are mostly university towns

• Other than the foreign investors, residents from neighbouring towns are more likely to invest in a second home or buy-to-let property in Luton than Luton residents. This is because neighbouring towns such as St. Albans, Watford, Dacorum and East Hertfordshire, have significantly higher gross household disposable income per head than Luton residents and live nearer to Luton than residents from other regions

Investors

8401,120

25%31%

170250

2016/172017/18

Financial Year

Total additionalproperties transactions

Estimated value (aditional properties) £’m

Proportion of total residentialtransactions

Table 15: Property Transactions 2016 - 2018

Source – Strawberry Star Research using ONS data (Additional dwellings transactions & receipts by Local Authority)

LUTON INNER LONDON OUTER LONDONFTBR Transactions % of residential transactions since announcement (22 November 2017)FTBR Transactions % of residential transactions over whole Financial Year

6%

17%25%

8%

30%25%20%15%10%5%0%

10%

28%

169,102Number of properties sold in England

under the Help to Buy Scheme from Q2

2013 to Q1 2018

41%proportion of new-build sales in

Luton using Help to Buy from 2013

to Q1 2018

Impact of Government Policies

Impact of Government Policies

Figure 15: Number of Help to Buy transactions from Q2 in 2013 to Q4 in 2017

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

Table 14: First Time Buyers Relief (FTBR) transactions of £40,000 or above in 2017-2018

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

2423

Luton Regeneration

As part of a wider regeneration of the area, Luton Borough Council has launched an ambitious £1.5 billion inward investment programme aimed at completely transforming the town over the next 20 years. Luton, working in partnership with major investors and developers on a number of schemes, including a 395-acre Enterprise Zone, is attracting attention from many businesses.

Some of the regeneration highlights include Butterfield Business Park (Henry Boot Developments), the DART rail line, Sloane International luxury apartments and Power Court (British Land), as well as major upgrades to The Luton Mall, High Town area and a new football stadium.

Luton Airport Enterprise Zone

Luton Airport Enterprise Zone, around 395 acres in size, will consist of three linked sites surrounding Luton Airport: Bartlett Square, Century Park and Airport Business Park. This significant investment opportunity is being delivered by Luton Council in partnership with London Luton Airport Limited and South East Midlands Local Enterprise Partnership (SEMLEP), and will create in the region of 10,000 jobs.

Business Park

A new industrial warehouse development is coming soon to Butterfield Business Park. The Park supports a diverse range of businesses to immediately benefit from its nationally strategic location and competitive cost base with a dynamic local economy.

High Town transformation

The historic High Town area of Luton will be transformed into a vibrant neighbourhood with a complementary mix of residential, public realm, retail and commercial activities.

Direct Air to Rail Transit (DART)

A new £200 million Direct Air to Rail Transit system will enable passengers to travel seamlessly to and from the London Luton Airport terminal and Luton Airport Parkway station via a more sustainable and efficient means of transport. From 2020, the service will significantly 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 with 122 retailers, over 2,000 employees, circa 21 million visitors and £227 million gross sales annually. A £7 million upgrade is in progress to create family zone, kids play, feast street, entrance enhancements and mall ambience.

Luton Cultural Quarter (LCQ)

Luton Cultural Quarter (LCQ) is a growing cluster of creative and independent businesses, arts venues, restaurants, public art and out-door events. Over the 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

New state-of-the-art stadium, Power Court, will come up in Luton town centre in addition to the 17,500 – 23,000-seater iconic stadium to support the club’s football ambitions. The £200 million mixed-use development scheme proposals being pursued would include venues for live sport and music, further leisure alongside an appropriate scale of lifestyle retail facilities, residential apartments and other valuable amenities.

2625

Bicester /Bicester Villiage

A418

Milton Keynes

Bedford

Stevenage

Harlow

Watford

Oxford

Banbury

Slough

Windsor

Buckingham

Cambridge

London

Biggleswade Melbourn Haverhill

Braintree

BishopsStortford

LetchworthGarden City

St Neots

Towcester

Didcot

Reading

Bracknell

Croydon

Epsom

Ilford

Dartford

Rochester

Basildon

BirminghamNew StreetStation

23 mins to King’s CrossSt. Pancras

Sudbury

Lavenham

Luton has the advantage of being within the ‘Golden Triangle’ of Cambridge, Oxford and London, which is home to world’s top universities.

Cambridge Just 40 miles from Luton is the university city of Cambridge, home to more than 18,000 students from all walks of life and all corners of the world, over 11,000 staff, 31 Colleges and 150 Departments, Faculties, Schools and other institutions. There are over dozen daily bus service between Luton and Cambridge.

Oxford The collegiate research university of Oxford is just 37 miles from Luton. Home to 38 colleges with 24,000 students, including 11,747 undergraduates and 11,687 postgraduates, from more than 150 countries, Oxford employs in excess of 13,600 people. Daily buses connect Luton and Oxford in a journey time of 1h35m.

Bicester villageThis 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 and cafés, the Village offers luxury services that include Valet Parking, Hands-free Shopping, the 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.

Luton Map - The Golden Triangle

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DISCLAIMERInformation 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.