Lag on LAN

I'm playing terraria with a friend inside the same LAN network, but unfortunately he lag's alot when we are playing. He doesn't lag when playing in singleplayer, only in multiplayer.

I've hosted Terraria before (back to version 1.2) and played with friends that were even on an outside network, and we never had lag issues.

Unfortunately, with the latest version, 1.3.5.3, when i host, everyone but me lags, on LAN or not. I don't think the problem is my machine since i've hosted before without a single problem. Can any one help me to resolve this issue?

Specs: i7-4710HQ 8 Gb Ram 1600 DDR3 GTX850M SSD 240GB Kingston UV400