Rents in the East of England have grown 2.35 per cent over the past year, at nearly four times the average UK growth rate.
New data from the Landbay Rental Index found that rent inflation in the East of England vastly exceeded the 0.64 per cent UK average. This is likely fueled by demand from long distance commuters for low rents. Rents have been pushed up by over 2 per cent in eight out of the ten East England counties.
Luton and Peterborough are two of London’s key commuter hotspots outside the M25, and saw inflation of 4.23 per cent and 3.75 per cent respectively. Thurrock and Bedfordshire are also major commuter towns, with rent rises of 3.56 per cent for the former and 3.19 per cent for the latter. The aforementioned areas have seen rents rise significantly in the past year, while in London they have fallen by -1.05 per cent.
Less affordable areas in London’s commuter belt such as the South East, have seen less demand and slower rental growth. Just 3 out of 19 counties in the South East saw rental growth above 2 per cent, the trio being Medway, Kent and West Sussex. The areas in the region with higher rents, Surrey and Windsor and Maidenhead each saw rents fall by a respective -0.13 per cent and -0.23 per cent.
Annual UK rental growth dropped to 0.64 per cent in July 2017, less than half of the rate of 1.83 per cent recorded at the end of July 2016.
CEO and founder of Landbay, John Goodall, said: ‘With rising inflation and rock-bottom interest rates it is little surprise to see demand in the more affordable Home Counties rising faster than pricier parts of London and the South East. Naturally these surrounding areas are starting to experience a surge in rental prices, creating a ripple effect out from the capital. There are of course a number of factors at play, but as yields tighten in the capital landlords may well be branching out to the East of England in a bid to meet this demand.’