How Securing Property In Luton Can Help Ease The Cost Of Living Crunch
The first quarter of 2022 has hit hard with the worst cost of living crunch in thirty years. But did you know that shifting your property sights to Luton could help ease the squeeze? Here’s how …
Things Are Getting Crunchy
Before we get into the nitty gritty of why choosing to rent or own property in Luton remains a winning bet despite the national sense of financial doom, we want to put a bit of context around things.
There’s been so much chat about the ‘Cost of Living Crunch’ in the media, but what exactly does it mean in real money for the average person outside of Westminster, especially now that the Chancellor has revealed his Spring statement?
Well, the snappily named Office for Budget Responsibility (OBR) – the government swots who know about these things – reckon that after all the increases coming down the tubes our average disposable income will fall by 2.2% in 2022-23.
That seems like a small number, but according to the OBR this equates to around £500 a year per household, and is the single biggest annual drop in disposable income EVER. For many, however, we know this number will be even higher.
Add to that the cheerful news that inflation and interest rates are expected to continue to rise throughout this year and next, and you have increasing financial pressure from all sides.
We’re all looking to save money where we can.
The biggest monthly outgoing for most people is their rent or mortgage, so it makes sense to review your living situation and see if there is an opportunity to save.
In Luton, we think there is.
Luton’s Rental Market Offers Top Value For Money – It’s Official
At Penrose, we’ve been banging on for years about the relative affordability of rental property in Luton. Prices are never going to be ‘low’, but the market is what it is – anyone who is looking for rental accommodation compares pricing in different locations, and Luton consistently delivers in terms of value for money.
But don’t just take our word for that.
Recent research by insurance provider Protectivity looked at the average cost of renting a one-bed flat across the UK and assessed different areas in terms of their affordability. It took into account average salaries, and also monthly expenses in each area.
Luton came out top in England in the affordability scale, and second only to Aberdeen across the whole of the UK.
What this highlights, is that Luton sits in that sweet spot where rents are low, but average incomes tend to be higher, partly because of the town’s proximity to London – many residents commute into the capital and secure London wages – but also because average wages are typically higher in the south east of England in general.
While this study looked only at one small section of the rental market – what’s true for one area generally translates across the board. It’s safe to assume that all rental prices in Luton are fantastic value for money.
Why You Should Still Buy If You Can
It’s common knowledge that rents are more expensive than mortgages, and yet another recent review has confirmed that this remains the case. We understand that first time buyers are nervous right now but if you can buy, it makes absolute sense to do so.
The Halifax compared the respective costs associated with renting vs mortgaging a three-bed home. While in 2021 the monthly rental costs grew by 6%, the insanely low interest rates meant that mortgage costs on the same type of property went up by only 2%.
In real money, that equates to a saving in your pocket of around £1,400 a year if you’re a homeowner rather than a tenant.
If that isn’t reason enough to dust off your deposit, remember that house prices themselves often defy the mood of the wider economy. According to the Nationwide Building Society, since the pandemic began, average UK house prices have rocketed up by a staggering 21%.
This upward trend is continuing despite the cost-of-living crunch. In the last twelve months alone, average UK house prices have increased by 14.3%.
But – and this is really important for Luton property buyers to note – there are strong variances across the country. As the market starts to come to its senses, property price growth in the southeast has dipped well below this average.
According to PlumPlot, average house prices in Luton have grown by just 6.5% in the same period. It’s like the market is breathing a huge sigh of relief. And so are we, on your behalf.
At Penrose we know the local market inside out, and we would agree that after the ridiculous rises seen at the height of the pandemic, property price growth has begun to ease off in Luton. This suggests that the Luton property market is entering a period of stability, and that makes it a prime time to make your first-time buy or to move.
To anyone in a position to buy or move, but still wondering whether to, we’d say this:
Make a change now while you can still snag a low fixed deal on mortgage rates. Prices may be steady, but interest rates certainly aren’t – the period of record low levels is coming to an end. For now, mortgages remain as affordable as they’ve ever been.
Don’t miss out.
Keep Your Eye On The Bigger Picture
Rents in Luton are low, and price stabilisation makes it a great time to take that first step onto the property ladder, or one further up it. Both excellent reasons for price-conscious home hunters to be targeting Luton property.
But if you’re still on the fence – which, let’s face it, would be understandable given the recent global uncertainty – then remember this:
The pandemic caused a shift in the demand for certain types of properties, and those with extra bedrooms, more living space, and gardens, became hot property as homeworking took off. Many organisations are now shifting to hybrid working, so transport accessibility as well as home functionality has become a dual-priority for many property hunters.
Luton has those transport links nailed – a direct trainline to the heart of the capital, our own airport, and enough key road links to make the AA envious.
And Luton homes tick a bunch of homeworking boxes too – Luton has a fantastic stock of older properties that have large indoor spaces and good-sized gardens. And we have a wealth of newer homes that have been designed with families in mind, meaning extra rooms that can act as office spaces, along with that all important outside sanity space.
For singles and couples starting out, we have a wealth of spacious, easy-to-maintain apartments with balconies, and easy access to the countryside around Luton, offering the best of all worlds.
These multiple selling points are unique to Luton, and history has shown that no matter what happens in the wider economy, renting or buying property here is a sound investment.
Luton will always offer that blend of affordability and convenience when you need it most.
In Summary …
When times are challenging our town always finds the light to see us through. The financial squeeze is the last thing any of us needed on the heels of the pandemic, yet here we are.
But as ever, Penrose has your back. We are to here to help you maximise the financial benefits of making Luton your home. We can’t stop the price increases, but we know how to help you keep your rent or mortgage to a minimum.
Get in touch today and we’ll show you how.