Rental Market State of Play: February 2023

Let’s take a look at how rental property markets are faring in London, Amsterdam, and Paris. Despite a small dip in month-on-month values, London rents are still on the rise and have increased by 13% from February 2022 to February 2023. Amsterdam and Paris continue to struggle with property supply and regulations around the private rental market.

London Rental Market Latest

London cityscape view across the Thames
London, UK

According to HomeLet, the average rent in Greater London now stands at £1,989, 0.9% less than in
December 2022, when tenants in the capital were paying an average of £2,007 per month. Despite a
small dip in month-on-month values, London rents are 13% more in 2023 when compared to 2022.
Agent Foxtons has been delving deeper into neighbourhood differences. Its data concurred that rents
had been rising across the capital on a year-on-year basis. Rent increases of 25% were noted in Central
London, with 20% uplift in South London and 19% in East London. A three-bed flat saw the highest year-
on-year increase in average rental price, up 25% in January 2022.

Average Monthly Rents in London

Renting a property in the very heart of London became more expensive again in February. A one-
bedroom city centre apartment rose in price from €2,275.76 pcm to €2,301.92 pcm. When it comes to a
three-bedroom apartment in London’s hub, per month prices have broken the €4,000 pcm barrier,
reaching €4,099.69 pcm. It’s a repeat story in London’s suburbs and a clean sweep for more expensive
rents. Rent for a one-bedroom apartment in the capital’s suburbs has jumped from €1,618.66 pcm to
€1,636.49, while a three-bedroom suburban apartment will now cost renters €2,796.60 pcm – up from
€2,737.77 pcm

Amsterdam Rental Market Latest

Amsterdam street view along canal with parked bicycles
Amsterdam, Netherlands

The supply of rental properties in Amsterdam has been under scrutiny for some time, with officials
trying to balance the need for both owner-occupier and privately rented accommodation with what it
views as profiteering landlords operating in a market of rising rents. In February, city officials fined
multiple landlords who had fallen foul of a fairly new law. In April 2022, a self-occupancy obligation was
introduced, making it compulsory for people who buy a property in Amsterdam worth €512,000 or less to live in it for four years before renting it out. Six homeowners were recently fined €22,000 each for
directly renting out the properties and bypassing the occupancy stage.

Average Monthly Rents in Amsterdam

Three out of the four properties Klippa tracks have become more expensive to rent in February, when
compared to January. The biggest hike in rental values is attached to a one-bedroom apartment in the
suburbs, which has risen from €1,371.68 pcm to €1,405.75 pcm. Not far behind is the cost of a three-
bedroom apartment in Amsterdam’s city centre – up from €2,604.29 pcm to €2,633.84 pcm. A more
modest rent rise was noted for three-bedroom apartments in the suburbs – €10 more expensive a
month at €1,982.95 pcm. Only a one-bedroom apartment in the city centre was more affordable, with
rents falling from €1,620.77 pcm to €1,603.40 pcm.

Paris Rental Market Latest

Street in Paris at night with cafes and a guests at tables
Paris, France

Officials in Paris continued their tinkering with the city’s property market in February. Just weeks after
new energy efficiency standards for rental properties were introduced, Paris authorities spoke out about
the scourge of second home owners. It wants the city’s limited supply of properties to be filled with
permanent residents rather than holiday makers, preferring that tourists stay in hotels or with friends. The
Deputy Mayor says proactive measures could include strict controls on holiday lets; increasing tax on
holiday home owners and forcing large offices to set aside space for controlled-rent public housing. The
upside of such incoming reforms should be a better choice of rentals for people who work in Paris and
need to live in the city.

Average Monthly Rents in Paris

In a reverse of the fortunes in London, it has become cheaper to rent a property in the centre of Paris in
the last four weeks. The price of a one-bedroom apartment in the French capital’s heart has dropped
from €1,291.18 pcm to €1,279.59 pcm. There’s also better value when it comes to three-bedroom city
centre apartments, with a drop in value of €28 to a new monthly rent of €2,882.61 pcm. The cost of
renting a three-bedroom apartment in the Paris suburbs also took a tumble, reducing from €1,937.65
pcm to €1,908.24 pcm. Only a one-bedroom apartment in the city’s suburbs became more expensive in
the last four weeks – rising marginally from €947.44 pcm to €956.19 pcm.

Need to Secure a Rental 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, 24th February 2023

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