In this article, we delve into the latest rental market trends in three key cities across Europe: London, Amsterdam, and Paris. We explore how changing regulations and market dynamics are shaping the landscape for both landlords and renters. The article also provides insight into the average monthly rental figures for these cities, which highlight interesting price trends for July 2023.
London Rental Market Latest
The news coming from England’s capital city is the same as the last few months: the supply of rental properties is low and rents are rising. Many landlords are exiting the buy-to-let market due to incoming legislative changes and crippling mortgage repayments, with Zoopla finding that 1 in 10 homes listed for sale during its summer analytical period were previously rented out.
Recently released research by LSE and Savills found private rental listings in London have actually decreased by 41% since the pandemic. The analysis also found that rental prices listed by landlords are now 20% above their level in March 2020. Rightmove’s data from the second quarter of 2023 also revealed that average monthly rents in London have hit a record-breaking high of £2,567 per month.
Average Monthly Rents in London
It’s a tale of two halves when it comes to the cost of renting a property in London during July. Tenants looking at larger properties may have noticed a small decrease in the cost. A three-bedroom apartment in the city centre has fallen in price from €4,570.81 per calendar month (pcm) to €4,479.85 pcm. A three-bedroom apartment in London’s suburbs is also fractionally cheaper, dropping from €2,927.17 pcm to €2,904.25 pcm. Smaller properties have posted monthly increases, however. A one-bedroom city centre apartment is now almost €50 more expensive a month, up from €2,388.46 pcm to €2,435.60 pcm, while a one-bedroom apartment in the city suburbs is €1,706.00 pcm.
Amsterdam Rental Market Latest
The pressure on Amsterdam’s private rental market looks to be increasing. A lack of supply has resulted in tenants having to offer over the monthly rent asking price. Estate agents in the city have told NOS – the Netherlands’ largest news organisation – that competition for rental properties is so fierce that tenants are happy to offer up to €300 per month above the asking price to secure somewhere to live in Amsterdam. Competition is set to grow if the amount of dedicated student accommodation doesn’t rise. A recent study by Bonard estimates the number of international students in Amsterdam (currently 17%) will increase by almost 10,000 by 2026/7, with almost 20,000 more domestic students expected too.
Average Monthly Rents in Amsterdam
In Amsterdam, the cycle of rental prices rising one month and falling the next continues. In July, the cost to rent all four property types Klippa monitors rose. A one-bedroom apartment in Amsterdam’s centre has risen from €1,652.34 pcm to €1,723.71 pcm, while a similarly-sized property in the city’s suburbs is up from €1,365.45 pcm to €1,389.03 pcm. Increases were also noted for larger properties. A three-bedroom city centre apartment saw the biggest hike in cost, up from €2,627.29 pcm to €2,692.93 pcm. A more modest rise was seen for a three-bedroom apartment in the city’s suburbs, rising from €1,987.60 pcm to €2,032.50 pcm.
Paris Rental Market Latest
Summer’s focus has been on the Paris sales market, with a raft of analysis indicating that the ‘golden age’ of property – one that was linked to COVID and low interest rates – is over. French Notaires say Paris has been hit hard, with house prices falling. Preliminary data for July 2023 predicts a year-on-year price drop of -4.8% for flats and -3.2% for houses, with the price per m² potentially falling below €10,000. Parisperfect.com’s data adds to the picture, claiming the average discount on a Paris property for sale is now -3.3%, although Paris properties with good energy ratings and balconies will continue to achieve a premium. It remains to be seen if landlords will use falling prices to invest in more Paris buy-to-lets – anything that boosts the rental supply before the 2024 Olympics will be welcome.
Average Monthly Rents in Paris
After Paris saw rental prices fall for three of the property types that Klippa tracks in June, July has brought another round of increases across the board, wiping out any recent discounts. Cost increases were quite substantial in three instances, starting with a three-bedroom city centre apartment, up from €2,800.88 pcm to €2,853.15 pcm. A three-bedroom apartment in the Paris suburbs also became more expensive to rent in July, increasing from €1,915.26 pcm to €1,985.95. Smaller Paris properties saw rises too. A one-bedroom apartment in the centre is up from €1,212.75 pcm to €1,276.67 pcm, while a one-bedroom apartment in the Paris suburbs has increased from €934.29 pcm. €952.09 pcm, the smallest monthly uplift.
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, 1st August 2023
