We have passed the halfway point of 2022 and the cities of London, Amsterdam, and Paris are enjoying a summer in full swing. This six-month milestone is a great time to assess the rental markets in these leading relocation hotspots, so Klippa takes a look at the developing news and ‘per month’ rental values. *
London Rental Market Latest
London’s rental market continues to run hot, with the city’s monthly and annual rent rises
outperforming those seen in the rest of the UK. HomeLet’s May Rental Index revealed that
London has seen the highest annual growth in rental prices – rising 15.7% in the last year and
with a new average rental price in the city of €2,137 per calendar month (pcm). London also
posted the highest jump in rental values between April and May 2022, with the average rental
now costing 1.6% more than in the previous month.
Knight Frank reports a continuing ‘supply and demand’ imbalance that may lead to further rent
rises in London. The agent’s May 2022 PCL Rental Index showed the number of new prospective
tenants registering in May was the fifth highest figure in a decade, while new listings are still
around a third below their long-run average in prime central London and prime outer London.
Average Monthly Rents in London
After a month of falling rental values, London has recovered in three out of the four metrics we use. A one-bedroom city centre apartment is slightly more expensive to rent in June than in May – rising from €2,063.99 to €2,071.08. There was also a marginal increase in the cost of renting a one-bedroom apartment outside of the centre, just over €1 more a month at €1,517.76. Larger properties in London’s heart have also become more costly to rent. It’s now more than €20 dearer to rent a three-bedroom city centre apartment in June, with a monthly rent of €3,864.56. The only decrease in monthly rents was for a three-bedroom apartment outside of the city centre – a price that has dropped €15 to €2,529.18 per month.
Amsterdam Rental Market Latest
Two announcements made in June are set to shape Amsterdam’s rental stock in the future – and they may affect supply in the coming months too as preparations to comply intensify. The city’s Housing Minister announced that by 2026, gas-fired central heating systems in domestic homes should be replaced by hybrid heat pumps, where possible. Later in the same month, he also revealed that private landlords will not be able to rent out a property if it has an E, F or G energy label from 2030 – a move expected to impact some 580,000 homes. It is unclear how many rental properties will need to be withdrawn from Amsterdam’s lettings market in order for sustainable changes to be made but we expect some disruption to supply.
Average Monthly Rents in Amsterdam
After rental values rose in all four metrics measured by Klippa in May, it was interesting to see if the momentum could be maintained. June’s figures saw rents for three of the four apartment types monitored rise again. A one-bedroom apartment in Amsterdam’s city centre now costs €1,640.07 – up from €1,618.73 per month – while a one-bedroom apartment in the suburbs is almost €20 more expensive to rent in June, at €1,330.66. The biggest rental value rise was attached to the cost of a three-bedroom property on the city’s fringe – up from €2,027.71 to €2,051.89 per month. The only value decrease was for a three-bedroom city centre property – down from €2,726.77 to €2,718.74 per month.
Paris Rental Market Latest
All eyes are on rising inflation in France, with speculation that the record 6.5% inflation rate seen in June is wiping out profits of Paris landlords, who usually enjoy an average yield of 3%. The Paris Property Group is speculating a negative profit territory may prompt landlords to raise rents or sell up altogether. In other news, an incoming rule may affect where relocators settle in the city as, by 2024, the centre of Paris will be exempt from cars. The new ‘Zone apaisée’ (Peaceful Zone) will be in place before the Olympics. We expect demand for rental properties within walking distance of the city’s business districts – and those close to public transport – to start rising soon, especially among relocators who are looking to secure a long- term let.
Average Monthly Rents in Paris
Rental value fluctuations in Paris during June maintain the same pattern seen in May. It’s now €4 more per month to rent a one-bedroom apartment outside of the city centre, with a revised value of €928.11. A one-bedroom apartment in the city centre has also become more expensive, rising from €1,254.05 to €1,262.95 per month. It’s Paris’s larger apartments where rental values are falling. A three-bedroom city centre apartment has dropped from €2,747.29 to €2,709.22 per month, while three-bedroom properties in the city suburbs are now almost €30 cheaper per month at €1,845.38.
Need to Secure a Property?
Klippa Relocation has established agents working across London, Amsterdam and Paris. We have enviable relationships with each city’s leading real estate agents and property finders, so please get in touch if you need help with the local rental market.
* Average monthly rental figures, expressed in Euros & taken from Numbeo, 30th June 2022