Commuters moving further afield and pushing rental prices ever higher
More people who work in London are now moving further afield to find somewhere to live, with cheaper renting costs pushing demand higher in an increasingly wide geographic area, according to reports.
It means that in places like the East of England, rents are rising faster than they are anywhere else in the country, as the rise in demand means prices being pushed ever higher.
According to the latest index report from Landbay, prices in the East of England region were up by 2.35 per cent in July when compared to the same month a year ago. This rise was considerably higher than that recorded across the country in general, where there has been a rise of some 0.64 per cent year on year.
Landbay said that in areas such as Luton, Peterborough, Thurrock, and Bedfordshire, demand is rising from commuters because the towns and cities offer rental prices that are as low as half of what is recorded in London. This is helping to push rises, which is good news for investors, seeing climbs of more than three per cent per year on rental income for landlords.
The movement of many commuters away from London and into surrounding counties is also helping to push the price of renting in the capital lower. The Landbay data shows that in London, rental prices are 1.04 per cent lower than recorded 12 months ago, a clear knock-on effect of the rise in longer commuting.
"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," said John Goodall, chief executive officer of Landbay.
"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," he added.