Rental Market State of Play: March 2023

Let’s take a look at how rental markets are faring in London, Amsterdam, and Paris. Rental values in Greater London are declining, but year-on-year values have increased and availability remains a major concern. Paris has seen a general rise in rental prices, but tenants renting new homes receive less value-for-money in terms of space. Amsterdam may see landlords selling up and exiting the market due to proposed rent controls, impacting rental values. Rental costs in all three cities have continued to increase in March, indicating ongoing pressure on rental markets.

London Rental Market Latest

London cityscape view across the Thames
London, UK

Rental values continue to fall in Greater London, according to the latest available HomeLet Rental Index.
The average monthly rent has dropped from £2,007 per month in December 2022 to £1,989 in January
2023, before hitting a new low of £1,975 in February. Despite this, Greater London’s year-on-year rental
values have risen 12.4%. Small fluctuations in the cost of renting are overshadowed by the continuing
issue of availability in London. In March, both agent Foxtons and property advisory firm JLL spoke out
about the lack of property to rent in the capital. Foxtons commented that more tenants would need to
look outside of inner London and compromise on lifestyles due to a lack of stock, while JLL’s latest
report said ‘the number of listings (in London) fell 35% compared to pre-pandemic levels in 2019 and
rents rose 21% from the end of 2019 to the end of 2022.’

Average Monthly Rents in London

The restrained supply of properties to rent in London is reflected in March’s rental values. A one-
bedroom city centre apartment now costs tenants more than €40 more a month when compared to
February, with a new value of €2,342.63 pcm. An even more pronounced jump in value was noted when
securing a three-bedroom apartment in the city centre, with costs rising from €4,099.69 pcm to
€4,346.24 pcm. A three-bedroom apartment in London’s suburbs was another property costing more to
rent, rising from €2,796.60 pcm to €2,825.45 pcm. Only a one-bedroom apartment in the capital’s
suburbs became cheaper to rent in the last four weeks, dropping in price from €1,636.49 to €1,614.62

Amsterdam Rental Market Latest

Amsterdam street view along canal with parked bicycles
Amsterdam, Netherlands

Provincial elections have thrown the issue of housing – the lack and affordability of – back into
the spotlight. Property experts are beginning to question whether proposed rent controls, which would
see most mid-market rental homes cost less than €1,000 per month to rent when a new tenancy is started, would have a detrimental effect on Amsterdam’s rental market. Estate agents believe the restriction on rent values will lead to more landlords selling up and Financieele Dagblad says there are
already signs of a mass exit due to an inability to turn a profit under proposed rent controls. In fact, one
of its housing experts estimates half of the rental housing in Amsterdam that becomes empty is being

Average Monthly Rents in Amsterdam

While it’s too early to tell whether an increase in landlords exiting the market has already had an impact
on rental values, the continuing lack of supply may be behind March’s increase in renting costs. It’s now
more expensive to rent all four property types tracked in March, when compared to February. A one-
bedroom apartment in Amsterdam’s city centre is now €10 more expensive a month at €1,613.24 pcm,
while the increase attached to a three-bedroom city centre apartment is closer to €100 – up from
€2,633.84 pcm to €2,730.75 pcm. Tenants considering a one-bedroom apartment in the Amsterdam
suburbs can expect to pay €1,424.20 pcm – up from €1,405.75 pcm – while the cost to rent a three-
bedroom apartment in the suburbs broke the €2,000 barrier – rising from €1,982.95 pcm to €2,027.61

Paris Rental Market Latest

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

While the cost of renting a property in Paris has been generally rising over the last decade, tenants
renting brand new homes have been receiving poor value-for-money in terms of space. New research by
the urban planning agency, L’Institut Paris Region, found that new dwellings in the French capital have
shrunk by 9m 2 in the last 10 years. While more bijou in size, there are more new build homes coming
onto the Paris market – which, in theory, should help ease the lack of choice in the private rental
market. The same report found the number of new homes in Paris rose by half between 2011 and 2020,
with the most intense house building seen in the inner suburbs of Hauts-de-Seine, Seine-Saint-Denis and

Average Monthly Rents in Paris

The small drop in Paris’s rental prices seen in February have been wiped out in March, as three of the
four property types monitored by Klippa Relocation have become more expensive in the last four weeks.
A one-bedroom apartment in the French capital’s heart has jumped from €1,279.59 pcm to €1,311.56
pcm, while tenants looking at three-bedroom city centre apartments will now pay €2,934.32 pcm – up
from €2,882.61 pcm. In the Paris suburbs, a three-bedroom apartment is €20 more expensive at
€1,928.82 pcm. Only a one-bedroom apartment in the suburbs is now cheaper to rent, down from
€956.19 pcm to €952.62 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, 31st March 2023

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