Ripple effect aids Luton rents

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No Caption ABCDE PPP-170308-124727001

Rents in Luton have seen a surge over the past year as tenants search for value outside London, according to an index.

Residential rents in the East of England region increased by 2.35% in the 12 months to July - the fastest rise of any UK region.

It was also nearly four times the average UK growth rate of 0.64%, according to the rental index from specialist buy-to-let mortgage lender

Landbay.

The current pace of growth means a tenant in Luton, for example, faces paying £789 on average a month in rent, compared with £757 a year ago -

an extra £384 over the year, the study found.

John Goodall, chief executive and founder of Landbay, said: “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.

“These surrounding areas are starting to experience a surge in rental prices.”