Demand for lower rents from long distance commuters is one factor leading to rents in the East of England recording strong growth, reveals one index.
Landlords with properties in the East of England saw their residential rents grow at four times the average UK rate with July's increase reaching 2.35%.
Around the UK, the average rent rise was just 0.64%, according to Landbay.
Their latest report points to growing demand from tenants moving away from London and that four of the hottest UK commuter hotspots are now found outside of the M25.
These include Luton, Peterborough, Thurrock and Bedfordshire which have seen rents rise in excess of 3% because of growing demand.
For landlords in London, the rents have dropped by 1.05% over the same period a year ago and the average July rent for the UK has increased by 0.06% on the month before to reach £1,193.
Average rent price in the UK
The average rent price in the UK, excluding rents paid in London, is an average of £756 which is a rise of 1.56% year-on-year.
The data also reveals that rents in Wales rose by 1.34%, in Scotland they grew by 1.23% and in Northern Ireland by 0.18%.
Landbay's chief executive, John Goodall, said: “With rock bottom interest rates and rising inflation, it’s no surprise to see demand in affordable home counties rising quicker than London's pricey parts.
“It's natural that surrounding areas are experiencing a surge in rents which creates the ripple effect out from London. There are various factors at play but as the capital’s yields tighten, landlords may be branching out to the East of England to meet demand.”
Growing numbers of people rely on the UK's private rental sector
Meanwhile, a survey has revealed the growing numbers of people in the UK will have two rely on renting property because they cannot afford to buy.
The findings from LetBritain found that 39% of tenants don't have the money to buy the type of home they want.
In London, the figure jumps to 49% because house prices are usually more expensive.
Tenants who were questioned blamed the government
However, most tenants who were questioned blamed the government for not helping them get a foot onto the property ladder; 61% said the government could do more.
LetBritain's chief executive, Fareed Nabir, said: “The research results are concerning with more people in the UK having to rely on the private rental sector.”
He added that many renters are working hard so they can enter the property market but they do not feel that the government appreciates issues being faced by tenants trying to do so.