In May’s rental market overview, we will be discussing the latest trends and developments in the rental markets of three major European cities: London, Amsterdam and Paris. With the introduction of the Renters’ Reform Bill in the UK, the impact of impending rental controls in the Netherlands, and the changing landscape of the Parisian property market, there’s plenty to explore. Read on to discover how these factors are shaping the rental market state of play in May 2023 and what it means for tenants and landlords alike.
London Rental Market Latest
May was the month when the much-anticipated Renters’ Reform Bill finally got its first reading in Parliament. While it may take over a year for new legislation to come into effect, the contents are already prompting a number of landlords to exit the private rented sector. In fact, BVA BDRC analysis for Property Week found the Bill is a primary reason why many landlords are selling their investments. The stream of rental properties being taken off the London market could explain why rents are rising again in the capital. According to the latest HomeLet Rental Index, the average rent in Greater London is back above €2,000 per month, at €2,306.79 – a 1.2% increase in the last month alone.
Average Monthly Rents in London
While there is never a quiet time in the London rental market, May usually sees an uptick in enquiries. A strong level of demand, coupled with a reduction in the number of properties available, is reflected in rental values over the past four weeks. Every property type that Klippa tracks has risen in cost. The biggest rise is attached to one-bedroom city centre apartments – now €2,384.28 per calendar month (pcm), compared to €2,317.05 pcm in April. A three-bedroom apartment in the city centre is currently more than €60 per month more expensive, jumping from €4,330.30 pcm to €4,394.41 pcm. London’s suburbs have followed suit. A one-bedroom apartment in the city suburbs is up from €1,637.62 pcm to €1,675.32 pcm, while a three-bedroom apartment in London’s suburbs has risen from €2,798.69 pcm to €2,839.48.
Amsterdam Rental Market Latest
Dutch News has been monitoring the reaction to impending rental controls across the country – a move that would affect approximately 90% of Holland’s rental market. The Financieele Dagblad has said it is already seeing signs that small scale private landlords are selling up to exit the market. Amsterdam rental housing specialist, Pieter van der Mede, provided additional insight that was specific to the city. He estimates that 50% of the rental housing in Amsterdam is being sold empty once the tenancy ends. Higher asset taxes on rental properties and landlords cashing in to provide themselves with a pension are two additional contributory factors behind the decreasing number of active landlords in the city.
Average Monthly Rents in Amsterdam
It has been a reversal of fortunes in Amsterdam over the last four weeks. While three of the four properties Klippa monitors dropped in value in April, three property types have risen in value during May. On the rise was the cost of a one-bedroom apartment in Amsterdam’s city centre, up from €1,627.69 pcm to €1,636.52 pcm. Three-bedroom properties also became more costly for tenants to rent. A three-bedroom city centre apartment is now €2,722.19 pcm – up from €2,683.19 pcm – while a three-bedroom apartment in the suburbs has risen from €1,985.94 pcm to €2,026.57 pcm. Only a one-bedroom apartment in Amsterdam’s suburbs has fallen in value – down from €1,414.38 pcm to €1,398.34 pcm
Paris Rental Market Latest
There is a small glimmer of hope that Paris’s supply of properties for private rent may stabilise, as the sales market has somewhat stalled. Landlords hoping to offload buy-to-lets are discovering the price peak has passed and current conditions have capped the rate of property appreciation. Agent Paris Perfect says the knock-on effect is apartments that are slower to sell for the first time in years, with price reductions being noted across the city and many vendors delaying selling until better conditions return. Experts predict property prices will decline by about 1.5% in 2023, so more landlords may continue letting out their property while they wait for values to recover.
Average Monthly Rents in Paris
In May, Klippa noted an interesting new pattern developing in the Paris rental market. Smaller properties became cheaper to rent, while the cost of renting a larger apartment rose in cost. Offering better value for money are one-bedroom apartments in the centre of the French capital, dropping from €1,303.62 pcm to €1,215.96 pcm. A one-bedroom apartment in the Paris suburbs also became kinder to the budget – down from €937.44 pcm to €920.68 pcm. At the other end of the spectrum, a three-bedroom apartment in the Paris suburbs has risen in value to €1,931.05 pcm – up from €1,907.78 pcm. A three-bedroom city centre apartment also cost tenants more to rent, but only marginally, up from €2,822.89 pcm to €2,827.42 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, 26th May 2023
