Market outlook for LU1
Key indicators for buyers
The LU1 market is moderately favourable for buyers. Prices have softened (-29.7%), which could present a buying opportunity. Affordability has improved from a peak of 9.2x in 2023 to 8.5x today. Rising rents (£1,207/mo, +3.5%) mean the cost of waiting is real.
Price trends
Yearly averages · HM Land Registry Price Paid Data
Prices by property type
2026averages · HM Land Registry Price Paid Data
Affordability ratio
House price ÷ median earnings · ONS data
Affordability data shown for wider Luton area
A home in Luton costs 8.5x the local median salary — stretched, improving from a peak of 9.2x in 2023.
Rental trends
Average monthly rent · ONS Private Rental Index
Rental data shown for wider Luton area
Average monthly rent in Luton is £1,207, up 3.5% year-on-year. Rents have risen consistently over the past five years.
Monthly mortgage
2yr fixed · 75% LTV · 25yr term · BoE avg. rate
Based on the average Luton price of £257,597 with a 25% deposit (£64k), a 2-year fixed mortgage at 3.97% costs around £1,017 per month.
Rent vs buy snapshot
Monthly cost comparison based on current data
Uses LU1 avg. price with Luton rental data
Monthly mortgage payments (£1,017) are £190 less than renting (£1,207). However, buying requires an upfront deposit of £64k — it would take around 7 years to recoup that cost compared to renting and investing the difference.
Recent sales
Latest transactions · HM Land Registry Price Paid Data
| Address | Type | Price | Date |
|---|---|---|---|
6, ELM AVENUE, CADDINGTON LU1 4HS | Semi-detached | £435,000 | 21 Jan 2026 |
18, PARK STREET LU1 3EP | Flat/Maisonette | £60,000 | 21 Jan 2026 |
18, PARK STREET LU1 3EP | Flat/Maisonette | £60,000 | 21 Jan 2026 |
23, WEST HILL ROAD LU1 3LZ | Semi-detached | £435,000 | 20 Jan 2026 |
16, LEYHILL DRIVE LU1 5QA | Semi-detached | £355,000 | 19 Jan 2026 |
22, NASEBY ROAD LU1 1LF | Terraced | £255,000 | 16 Jan 2026 |
57, INKERMAN STREET LU1 1JD | Semi-detached |
Data sources (all free & public): HM Land Registry Price Paid Data & UK House Price Index · ONS Housing Affordability Ratios · ONS Private Rental Index · Bank of England Quoted Household Interest Rates · HMRC Monthly Property Transactions
Contains HM Land Registry data © Crown copyright and database right 2021. This data is licensed under the Open Government Licence v3.0.