May appears to be a month of reflection when it comes to European rental markets. There is very little to report in the way of price changes – modest rises here, subtle falls there – but one thing unites London, Amsterdam, and Paris, and that’s what lies ahead. Klippa Relocation rounds up the forecasts that may affect the cost of renting and the choice of properties in the future, and balances this with a “per month” value* snapshot.
London Rental Market Latest
London remains the least affordable rental market in the UK, and lettings platform Ocasa predicts that the annual cost of renting a property in the capital will rise by £1,140 by March 2023. When it comes to specifics, agent Strutt & Parker says the prime central London market will see the biggest uplift in rental values. It predicts growth of 10% in 2022 due to soaring demand from tenants and a shortage of available properties. This builds on an average prime central London rent that grew 3.3% in the first quarter of the year.
Average Monthly Rents in London
Predictions are just that, and rental rises have yet to be reflected in the figures. A one-bedroom city centre apartment is cheaper to rent in May than in April, falling from €2,076.47 per month to €2,063.99. A drop in value has also been charted for three-bedroom properties in London’s central district – reducing from €3,957.64 per month in April to €3,841.48 in May. There was only a 10p difference in the monthly cost of a one-bedroom apartment outside of the city centre, now costing €1,516.20, while three-bedroom rentals outside of London’s centre have dropped from €2,550.49 per month to €2,545.42.
Amsterdam Rental Market Latest
Property experts in Amsterdam have started to look at how expected regulation changes may affect the supply of rental properties in the near future. Ing – a global financial institution headquartered in the city – says planned rent controls may reduce the rental prices of some 40,000 regulated and unregulated rental properties, with a high proportion of those located in Amsterdam. Ing also cites 2025’s reform of capital gains tax in the Netherlands, which is likely to lead to higher taxation of rental returns, as a source of long-term concern.
Average Monthly Rents in Amsterdam
May has been a month in which rents in Amsterdam have increased. Although the monthly rises have been marginal, they have been tracked in all four of the property types that Klippa measures. A one-bedroom apartment in the city centre now costs €1,618.73 per month, while a centrally located three-bedroom property will set tenants back €2,726.77. Affordability can be found in Amsterdam’s suburbs, with a one-bedroom apartment now costing €1,311.90 per month, while a three-bedroom property on the city’s fringe is €2,027.71.
Paris Rental Market Latest
Paris is a property market that appears to be in a post pandemic pause, with website doorfeed.com reporting that the city’s rent in May had risen just +0.4%. The supply of rental properties may change in 2022, as French property taxes are set to hit record levels. The taxe foncière paid by homeowners is increasing, with local authorities permitted to add an extra charge for second homes in areas with a housing shortage. In addition, second home owners in Paris will still have to pay taxe d’habitation even though this tax is being phased out for owner-occupiers. Whether this encourages second home owners to rent out their properties on a longer-term basis to avoid tax hikes remains to be seen.
Average Monthly Rents in Paris
It’s a case of two up, two down when it comes to Paris’s average rents in the last month. On the rise is the cost of a one-bedroom apartment outside of the city centre, which is now €924.74. Also seeing a modest increase is the monthly cost of a three-bedroom city centre apartment, with a new value of €2,747.29. Dropping in price are one-bedroom apartments in the city centre, which attract a monthly rent of €1,254.05, and three-bedroom properties in the city suburbs, now at €1,872.31.
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, 25th May 2022
