Rental Market State of Play: March 2024

In March’s rental market update, the rental landscapes in London, Amsterdam and Paris continue to evolve, with each market facing distinct challenges. In London, demand for rental homes has fallen by a fifth over the past year, but there are still 15 enquiries for every available property. In Amsterdam, the pressure on housing supply due to a raft of legislative changes has led to rising rents and a further reduction in available properties. Paris is also grappling with a significant decrease in the number of rental properties, with a 74% drop over the past three years.

London Rental Market Latest

London cityscape view across the Thames
London, UK

Zoopla’s Rental Market Report for March 2024 sheds light on the current state of the country’s wider lettings landscape as well as giving us an insight into how London rentals are behaving. The portal says demand for rental homes has fallen by a fifth over the past year but there are still fifteen enquiries for every available home to rent. Zoopla expects rents to keep rising in 2024 but at a much slower rate than seen in previous years. For reference, rents in London rose by 5.1% in 2023, with the average monthly rent costing £2,121. The most recent number crunching can be found in HomeLet’s March Rental Index. It says London rents decreased by 0.5% in the last month. 

Average Monthly Rents in London

While many of the UK’s rental reports suggest rental values are moderating in London, the effects have yet to filter through to paying tenants. In March, every type of property that Klippa tracks had risen in cost. The most distinct increase is attached to a three-bedroom apartment in the suburbs, which has risen from €3,211.92 pcm to €3,303.89 pcm. The same-sized property – a three bedroom apartment – in the city centre is up from €4,871.68 pcm to €4,925.14 pcm. Smaller properties are also more costly. A one-bedroom apartment in Central London costs €5 more per month to rent, now at €2,582.30 pcm, while a one-bedroom apartment in the suburbs has increased from €1,898.79 pcm to €1,906.84 pcm.

Amsterdam Rental Market Latest

Amsterdam street view along canal with parked bicycles
Amsterdam, Netherlands

Klippa has reported on a number of initiatives designed to reshape the Netherlands’ rental market. From a tenant’s right to request a landlord replace single glazing to inflation-linked capped rent rises, a points-based rent control system, a ban on two-year ‘temporary’ tenancy contracts, an increase in transfer tax for landlords, and the threat of the Affordable Rent Act, there have been a raft of punitive measures for landlords to digest. Now, disquiet among landlords is being quantified. According to new research published in ESB magazine, Dutch private investors sold 11,700 more homes to owner-occupiers than they bought from them last year. This was particularly true in bigger cities, such as Amsterdam.

Average Monthly Rents in Amsterdam

Pressure on supply in Amsterdam’s most central districts showed in March. The cost to rent a one-bedroom apartment in the city centre has risen for a second consecutive month, up from €1,859.85 pcm to €1,872.48 pcm. A three-bedroom apartment in Amsterdam’s heart is also more expensive, almost €25 a month more, now at €3,049.27 pcm. Better value for money can be found in the city’s suburbs, where values have fallen over the last four weeks. A one-bedroom out-of-town apartment has reduced in cost from €1,544.19 pcm to €1,527.78 pcm, while a three-bedroom apartment in the suburbs is €9 cheaper, now costing €2,302.63 pcm.

Paris Rental Market Latest

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

While many people blame the Olympics for a shortage of rental properties, a France24 article claims that over a much longer period of three years, the number of rentals in Paris has decreased by 74%. Speaking to the website, Barbara Castillo Rico, director of economic studies at SeLoger, says rent increases in the capital city were less than 2% but are now over 3%. Shockingly, one in five properties in Paris is actually vacant, according to the Urban Planning Agency. The latest Paris Rental Agency survey puts the average monthly cost to rent a furnished apartment in Paris at approximately €34 to €47 per m2. 

Average Monthly Rents in Paris

The yo-yo effect remains in force in Paris. After February rents fell in value, there were rises across the board in March, perhaps indicating that pressure to find rentals ahead of the Olympics is beginning to bite. The property type to see the biggest rise in value is a three-bedroom apartment in the city centre, up from €2,967.59 pcm to €3,073.28 pcm. The same-sized property in the suburbs – a three-bedroom, out-of-town apartment – is now €60 more expensive, at €2,160.19 pcm. Tenants will find smaller homes more costly, too. A one-bedroom apartment in central Paris is now €1,426.14 pcm, up from €1,406.70 pcm, while a one-bedroom apartment in Paris’s outskirts is €8 more a month at €963.08 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, 28th March 2024

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