From talking to one of my landlords the other day about the Luton property market, he wanted to know what an average property was worth in the town. Well there is no such thing as an average property, but according to Zoopla, the average value of a property in Luton is £168,209. By my calculations, the average rent being asked in Luton is around £717pcm, which means the average yields/annual return are 5.1% per year. In 2012, the average value of a property rose in town by 2.2%, meaning landlords achieved a total return of 7.3%.
When comparing this to what you get in return from banks, buy to let could be good investment for you. Don’t get me wrong, there are pitfalls. My message to all the people of Luton, be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple. Take some independent advice before buying anything, unless you’re 100% sure of what you’re doing. I say this because I know what happens when people don’t.
Even if it’s not from ourselves, there are still a few regulated ‘lettings only’ agents in Luton who are well placed to advise on whether the property you’re buying will rent, and at what price. We’re certainly more than happy for you to ask if you pop in and see us at our office’s on Marsh Road, and I’m sure they are too.
