Squeezed-out London commuters are pushing rents up in the East of England

 
Emma Haslett
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The Norfolk Broads
Rents in Norfolk rose 2.3 per cent in the year to July. (Source: Getty)

Sky-high living costs are being pushed eastwards, it seems, after new figures showed Londoners squeezed out by high rental prices are pushing up the cost of renting a home in towns east of the capital.

Landbay's rental index showed residential rents in the East of England rose 2.3 per cent in the 12 months to July, the fastest growth rate of any UK region.

The figure was also almost four times the average UK growth rate: rents across the country rose just 0.6 per cent in the last 12 months to £1,193, according to Landbay. Stripping out London, the rise was 1.6 per cent, although the average rent was considerably lower, at £756.

Rents in eastern towns including Luton, Peterborough and Thurrock were pushed higher, rising 4.2 per cent, 3.8 per cent and 3.6 per cent respectively.

Read more: Revealed: the best places to rent in every UK region

​Meanwhile, in the capital rents fell just over one per cent to £1,873 as Londoners tightened their belts thanks to high inflation.

“Young people working in London are wrestling with rising inflation on the one hand, and rock-bottom interest rates on the other, so it’s hardly a surprise that people are tackling longer commutes to reduce their rent burden while they save for a deposit on a house of their own," said John Goodall, Landbay's chief executive.

Last month research by Savills suggested the number of people moving out of the capital had risen 80 per cent in the past five years, with more than 93,000 departing the capital in 2016.

People in their 30s were the most likely to leave: since 2012, the number of 30-somethings moving out of the capital has risen 68 per cent.

"It's telling that already expensive areas surrounding the capital have seen far less rental growth, than much more affordable ones," added Goodall.

Read more: Finally some good news for London renters

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