on 5 november 2012, smith was loaned out to conference premier club luton town until 5 january 2013, having played in 13 matches for york in 2012–13. he made his debut the following day in a 1–0 defeat at hereford united. smith scored his first goal for luton with a header in their 3–0 home win over alfreton town on 8 december 2012. this proved to be his final appearance in his loan spell for luton, as he was recalled by york on 11 december 2012, having scored once in six appearances for the bedfordshire team. smith was disappointed at the recall, having previously expressed his desire to stay at luton and experience "playing in front of a big crowd every week". on 29 december 2012, it was confirmed that smith would make a permanent move to luton on 1 january 2013, signing a one-and-a-half-year contract after the two clubs agreed a fee of £50,000. he made 28 appearances as a permanent player for luton in 2012–13, including in the club's 1–0 fa cup win over premier league team norwich city.