Bedfordshire · East of England

Mezzanine finance for Luton developers

Second-charge development funding to 90 to 95 percent of cost, priced against Luton's own evidence: 1,707 recorded sales in the last 12 months and 478 units in live planning applications. We lend from our own book and arrange whole of market where that serves you better.

All of Bedfordshire

£300k

Median sold price, 12m

1,707

Sales recorded, 12m

478

Units in live applications

£83.7m

Estimated pipeline GDV

The Luton market, in numbers we underwrite from

A mezzanine loan is a view on whether a scheme will sell at the price its appraisal claims, so every Luton deal starts with the local evidence. Over the last 12 months the town recorded 1,707 sales at a median of £300,000, flat 0 percent year on year. New build stock commands a discount of about 13.3 percent to existing homes on 84 new build completions, which matters directly to how we read a developer's sales assumptions.

What Luton stock actually sells for

Property type	Median sold price, 12m
Detached	£430,000
Semi-detached	£332,000
Terraced	£267,500
Flats	£170,000

HM Land Registry price paid data, trailing 12 months, refreshed 5 July 2026.

Live planning activity at Luton Borough Council

Over the last 3 months our monitors logged 43 relevant applications, 0 approved and 43 awaiting decision. Together the live residential applications propose 538 units with an estimated end value of £93.7m.

Schemes moving through planning now

Proposal	Units	Status
Erection of 90 dwellings consisting of (14 x 1-bed, 60 x 2-bed and 10 x 3-beds) flats within 4 and 7 storey building and (6 x 4 beds) within 3 storey houses with associated car parking, landscaping and amenity spaces aft…	90
Erection of 90 dwellings consisting of (14 x 1-bed, 60 x 2-bed and 10 x 3-beds) flats within 4 and 7 storey building and (6 x 4 beds) within 3 storey houses with associated car parking, landscaping and amenity spaces aft…	90
Erection of 60 dwellings (9 two-bed maisonettes, 4 two-beds, 16 three-beds, 29 four-beds and 2 five-beds) with associated car parking and vehicle access from Hayling Drive with relocation of public open space to adjacent…	60
Erection of 60 dwellings (9 two-bed maisonettes, 4 two-beds, 16 three-beds, 29 four-beds and 2 five-beds) with associated car parking and vehicle access from Hayling Drive with relocation of public open space to adjacent…	60

Sourced from Luton Borough Council public register. If one of these is your scheme, we already know the context.

Gap funding for Luton schemes

The structure is the same one we write everywhere: your senior lender keeps first charge and funds the majority of cost, our mezzanine finance takes a second charge over the next slice, and your equity requirement falls, typically from around 35 percent of cost to 5 or 10. Terms run 6 to 36 months, pricing is indicatively from 12 percent a year, and a complete enquiry gets a term sheet inside 48 hours. Model a Luton scheme with the leverage calculator, or see the wider county picture on our Bedfordshire page and the national view in the UK development pipeline tracker.

Indicative terms in Luton

Loan size£250k to £5m
Combined leverageUp to 90 to 95% LTC
Term6 to 36 months
PricingFrom 12% a year
SecuritySecond charge plus PGs
DecisionTerm sheet in 48 hours

Indicative only; every loan is priced case by case.

FAQ

Mezzanine in Luton, answered

Do you fund developments in Luton?

Yes. We lend second-charge mezzanine on residential and mixed-use schemes in Luton and across Bedfordshire, typically taking combined leverage to 85 to 95 percent of cost alongside a senior facility. Where a case suits another funder better, we arrange it whole of market.

What does the Luton market look like right now?

Over the last 12 months Luton recorded 1,707 sales at a median of £300,000, flat 0 percent year on year. The live planning pipeline holds 478 units with an estimated GDV of £83.7m. The figures on this page refresh as the underlying Land Registry and planning data updates.

Does new build stock sell at a premium in Luton?

On the last 12 months of Land Registry data, the 84 new build sales in Luton priced about 13.3 percent below comparable existing stock. That premium is one of the first numbers we check when we underwrite a Luton appraisal.

How quickly can a Luton scheme get terms?

A complete enquiry gets a considered credit view and term sheet inside 48 hours, and typical enquiry to drawdown is 4 to 6 weeks, run in parallel with your senior lender.

Nearby

More Bedfordshire markets

Bedfordshire

Building in Luton?

Share the scheme and get a term sheet in 48 hours, underwritten with the same Luton evidence on this page.