The latest Landbay Rental Index has found that rental prices in eight out of 10 counties in the East of England have risen by more than 2% over the past 12 months, compared with just three out of 19 in the South East.
Rents in London have fallen by 1.05% over the past 12 months, while outside of London the rate of growth slowed to 1.56%.
Luton (4.23%), Peterborough (3.75%), Thurrock (3.56%) and Bedfordshire (3.19%) have all had significant increases in average rental price.
- Trend report: Landlords purchasing cheaper properties with higher yields
- Limited companies borrow more than individual landlords
- 22% of first-time-buyers live with parents
The average tenant in Luton is now paying £789 per month, compared with £757 a year ago.
John Goodall, CEO and founder of Landbay, 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.”
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