Growth in the region was four times higher than the UK average of 0.64%.
Landbay said the increase was a result of long distance commuters moving east for lower price accommodation.
Of the five commuter belt hotspots outside the M25 with the highest rent hikes, four are found in the East of England: Luton (up 4.23%), Peterborough (3.75%), Thurrock (3.56%) and Bedfordshire (3.19%), and all had average rents less than half the London average of £1,873.
This is despite rents in London having fallen by 1.05%.
John Goodall (pictured), chief executive officer and founder of Landbay 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.”