Highest rental growth in East of England

engThe East of England is seeing house rents rise almost four times the average for the UK with annual growth of 2.35% in July compared to a national rise of just 0.64%. According to the report from Landbay, Rents have increased by 4.23% in Luton, by 3.75% in Peterborough, by 3.56% in Thurrock and by 3.19% in Bedfordshire in the last 12 months yet actual rents are less than half of the London average of £1,873. In London rents have fallen by 1.05% year on year and the current pace of growth means a tenant in Luton is now paying £789 each month in rent compared to £757 a year ago, an extra £384 over the year. Accordingly, growing affordability crisis for young people working in London, suggesting that many are moving further afield to reduce their rent burden, possibly while they save for a house of their own. Less affordable areas in London’s commuter belt, those with higher average rents and particularly those in the South East, have seen less demand and therefore slower rental growth.

John Goodall, chief executive officer of Landbay : “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.”

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