TRADERS say growing rent prices in the Cotswolds are driving young people away, affecting business.

This follows new research which revealed that the Cotswolds is the most expensive place for private rent in the South West.

The study by the National Housing Federation (NHF) showed that on average, rent swallows almost half of each person's salary per month The mean average was found to be £922 per month, and the average salary £23,098.

Traders in the Cotswolds say this has an impact on the economy, as young people are being driven away from the area because they cannot afford to rent here, and those that stay don't have enough disposable income to go shopping.

Christian Alba, the manager of Cirencester butchers Michael Hart and Son, said he has heard customers comment about prohibitive rent prices.

“Then they just move away,” he said. “I don’t know how people afford to live here. What will happen to the town if it keeps going this way is that the young people will move away. We must keep the younger generation in the town."

NHF is warning that unless the shortage of affordable homes is addressed, rents will continue to rise and more people will see their disposable income wane.

Adam Hough, 23, who rents a one-bedroom apartment in Siddington, said: “I come from Cornwall originally but my Cirencester flat is around £200 more expensive a month compared to a similar flat I could rent down south,” he said. “It’s difficult for young people especially those who have just come out of university and are struggling to pay off their overdraft.”

James Martin, 26, rents a two bedroom apartment in Cirencester with his fiancee Tilly. He said he thinks renting in the Cotswolds is expensive but that he feels lucky to live here.

"Some would argue that living in the Cotswolds is in itself a privilege that we should pay for but it can mean younger generations find it difficult to leave their family homes," said James, who grew up in Fairford.

"I would go as far as to say that you cannot afford to rent on your own in most of the Cotswolds."