Rental Market State of Play: November 2022

London, Amsterdam, and Paris have had a popularity boost in the form of results from a new survey. A report set out to discover the top 10 most accessible global cities, with 3,500 people with disabilities having their say.

When it came to transport links, proximity of accommodation to attractions, shops, and restaurants, and the availability of information about accessibility, London, Amsterdam, and Paris all made the top 10.

Amsterdam was praised for its equal treatment of all, as set out in its country’s constitution, and for its accessible public transport network, where adapted bikes can be rented to take advantage of the cycle lane network. London won points for its wealth of accessible travel information and for the fact that all buses are wheelchair accessible. Paris was singled out because of its Olympic transformation. The hosting rights are providing impetus for the city to become more accessible for Paralympians and spectators, with 15 accessible pilot districts around Olympic and Paralympic sites in the planning.

London Rental Market Latest

London cityscape view across the Thames
London, UK

What is being described as a “perfect storm” of conditions in the sales market is set to impact the London rental sector. Higher mortgage rates, the cost of living crisis, and an inability to save for a deposit are prompting some purchasers to rent in the short term while they wait for costs to reduce. This extra pressure on rental availability is laid bare in a new survey by Rightmove, which found letting agents are managing 36 enquiries per rental property, with quadruple the number of tenants as rental properties available. In London, this is manifesting as yet more monthly rent rises. The latest HomeLet Rental Index, reflecting activity in October, noted rents in the capital were 2.3% more expensive in October than in September.

Average Monthly Rents in London

The pressure for rental properties in London has seen rents rise in every metric that Klippa tracks. The biggest rent increases are attached to smaller apartments. A one-bedroom apartment in London’s city centre has risen from €2,200.95 per calendar month (pcm) to €2,227.72 pcm. Outside of the city’s heart, a one-bedroom apartment now costs €1,602.77 – up from €1,572.06 pcm. More modest rent rises have been noted for three-bedroom properties. A three-bedroom apartment outside of London’s centre has risen from €2,614.26 pcm to €2,622.24, while a tiny increase has pushed the cost of a three-bedroom apartment in the city’s heart up from €3,738.13 to €3,740.85 pcm.

Amsterdam Rental Market Latest

Amsterdam street view along canal with parked bicycles
Amsterdam, Netherlands

The big five cities in the Netherlands are all experiencing rent rises, with properties in the non-rent-controlled housing sector being filled more quickly too. The latest quarterly report by Pararius found renters taking out new tenancies in Amsterdam were paying 10.3% more now than they did a year ago. At present, rents have reached €25.24 per square metre, or an average of €1,766 for a 70-square-metre apartment. From 2023, Amsterdam landlords will be questioning their involvement in the city’s lettings sector, as buy-to-lets will be subject to a higher rate of transfer tax.

Average Monthly Rents in Amsterdam

Amsterdam’s rental values have stabilised somewhat in November, with two property types becoming more expensive to rent and two becoming cheaper – but the differences are very slight. A one-bedroom apartment in Amsterdam’s city centre has dropped from €1,710.46 pcm to €1,708.14 pcm, while there’s a small monthly saving on one-bedroom apartments outside of the city centre – down from €1,472.21 pcm to €1,468.47 pcm. Larger apartments have risen slightly in value in the last four weeks. A three-bedroom apartment in Amsterdam’s city centre has increased from €2,863.74 pcm to €2,870.55 pcm, while a three-bedroom apartment in the suburbs rose from €2,086.47 pcm to €2,093.93 pcm.

Paris Rental Market Latest

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

In November, Paris’s mayor, Anne Hidalgo, announced that taxe foncière rates are going to rise by almost 50% in 2023. This annual ownership bill currently sits at 13.5%, based, in theory, on what a property could be rented out for, but will rise to 20.5% next year. It remains to be seen whether the increased tax bill will be, in part, recouped by landlords in the form of more expensive rents. This is a blow to a lettings market already under immense pressure. Despite rent controls, minimum living standards, and strict limits on the habitable size of a rental property, a lack of choice is seeing Paris tenants willingly rent apartments smaller than the legal minimum size of 9 sq m. Just recently, a landlord was fined €20,000 for
letting out an apartment that measured just 5 sq m.

Average Monthly Rents in Paris

Values in the Paris rental market have broadly remained stable over the last month, with very little movement. In fact, the average monthly rental cost of a three-bedroom apartment in Paris’s centre has stayed the same, at €2,858.04 pcm. There have been small falls in rental costs when looking at one-bedroom properties. A one-bedroom apartment in the city centre has dropped from €1,278.09 pcm in October to €1,276.09 pcm in November. It’s also marginally cheaper to rent a one-bedroom apartment in the Paris suburbs – down from €944.09 pcm to €941.82 pcm. Only a three-bedroom property in Paris’s suburbs was more expensive to rent in November – up from €1,896.57 pcm to €1,943.08 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 November 2022

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