 Burnley were relegated the following season, and Davis was sold to Luton Town for £750,000 in July 1995.In 1996, despite his performing admirably for the Hatters, the club were relegated to the Division Two for the first time in over 25 years.He was then part of the side that finished third in the league in the 1996–97 season, before losing in the play-offs to Crewe.