The rental growth in the East of England has seen its strongest year, according to new research.
Residential rents have gone up by almost four times the average for the UK. The annual growth was 2.35% in July compared to the overall national rise of 0.64%.
A lot of people are finding themselves moving further and further away from central London in a bid to save themselves high rental costs. There is strong demand for lower rent accommodation, especially on the outskirts of the M25.
Rents in Luton, Peterborough, Thurrock and Bedfordshire are coming in at approximately half of that in London, despite the fact they have gone up by 3% as a result of growing demand.
The cost of rent in the Luton area have gone up by 4.23% in the last 12 months, in Peterborough they have risen by 3.75%, in Thurrock by 3.56% and in Bedfordshire by 3.19%. The average cost of rent in London is £1,873 per month, which is double the price of that in the four other areas outside of London.
The cost of rent has dropped in London by 1.05% on an annual basis but it is still a costly place to live for the majority of people. Taking the fact that London is the capital of the UK into consideration it comes as no surprise that the average cost of rent is still a rocketing price.
Other research shows that rental prices have gone up by 1.34% in Wales, 1.23% in Scotland and 0.18% in Northern Ireland. There is now a growing affordability issue for young people who are working and living in London, which is stopping them from getting on the property ladder.
The East of England has seen the competition bump up the rents across the board. Three out of 19 counties in the South East have seen rental growth go up by 2% or more, with particular increases in Kent (2.28%), West Sussex (2.03%) and Medway (3.16%). These places all have much more affordable rent prices, so it may be a good idea to investigate this rental market if you’re on the lookout for affordable rent.
Two locations in the South East that have higher rents is in Surrey, at £1439 and Windsor and Maidenhead at £1270 have seen their rents drop by just a small 0.13%, but this is still better than a rising rent percentage.
Written by Gemma Smith