Rental prices surging outside of the M25

Rental prices surging outside of the M25

A new report by Landbay, one of the UK’s leading peer-to-peer lending companies, has revealed that rental demand just outside of the M25 has increased, especially on the east side of the capital.

The Landbay Rental Index has shown that rents have increased by 2.35% in the East of England year-on-year to July. This compares to the UK average of 0.64%.

It is the areas just outside of the M25 which have performed the best. Rents have increased the highest in:

Luton – 4.23%

Peterborough – 3.75%

Thurrock – 3.56%

Bedfordshire – 3.19%

Chief Executive and one of the founders of Landbay, John Goodall, 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.”

If you’re looking for buy-to-let investment opportunities in areas of the UK where rental prices are on the increase, please get in touch.