Another month and another common theme – crucial figures are on the rise. Inflation, bank rates and mortgage rates are edging up across Europe and in the UK, while the value of the Pound continues to be affected by a recent change in political leadership. We complete October, however, with a period of stabilisation that has allowed many rents across London, Amsterdam and Paris to gradually edge up.
London Rental Market Latest
If the previous London rental market was running hot, it has now reached boiling point. A number of different property reports are falling over themselves to exclaim how rents in the capital are a runaway behemoth. Rightmove’s analysis shows London rents have risen by the largest ever amount in the last 12 months, leaving an average per calendar month (pcm) rent of £2,343 (GBP). The uplift was quantified in the latest TwentyCi Property & Homemover Q3 2022 report. When compared to 2019, rents in inner London have risen 20%, and 14.2% in outer London. For a month-on-month snapshot of how quickly rents are rising in the city, the latest HomeLet Rental Index shows rents jumped 2.5% between August and September.
Average Monthly Rents in London
After an unsettling time in the capital city, the pound has stabilised a little and some of the rental losses that were charted in September have been regained in October. A one-bedroom apartment in London’s city centre has risen from €2,079.99 pcm to rent, to €2,200.95, while an apartment of the same size but in outer London is also more expensive, rising from €1,506.47 pcm to €1,572.06 pcm. A three-bedroom apartment outside of London’s centre has seen a marked rise in price, up from €2,496.36 pcm to €2,614.26. Only a three-bedroom apartment in the city’s heart is cheaper to rent this month – down from €3,808.74 pcm to €3,738.13.
Amsterdam Rental Market Latest
Amsterdam has been flagged up as a global city potentially on the edge of property market collapse. The city took 7th spot (up from 9th in 2021) in the UBS Global Real Estate Bubble Index. This annual report identifies cities around the world that have the greatest housing bubble risk, ascertained by analysing real estate trends and prices. There has been building heat in the Amsterdam rental market for some months now, with anecdotal observations validated by new figures released by Statistics Netherlands (CBS) in September 2022. The organisation found the largest recent increase in rental prices was observed in Amsterdam, where rents rose an average of 3.6%
Average Monthly Rents in Amsterdam
Figures for Amsterdam’s rental market in October reflect concerns about a market on the point of overheating, as it is now more expensive to rent every type of property Klippa monitors, when compared to September. A one-bedroom apartment in Amsterdam’s city centre costs €13.35 more, with a new average of €1,710.46 pcm. Opt for a one-bedroom apartment outside of the city centre and you’ll pay €40.07 more in October, with a new rent of €1,472.21 pcm. The cost of renting a three-bedroom apartment in Amsterdam’s hub has risen from €2,815.41pcm in September to €2,863.74 pcm in October, with a three-bedroom apartment in the suburbs up from €2,056.37 pcm to €2,086.47 pcm.
Paris Rental Market Latest
The Paris rental market is gearing up for an imminent change in regulations that could stunt the availability of properties. On 1st January 2023, new French climate rules come into force, which will prohibit landlords with the most poorly-insulated apartments and houses from making their properties available on the long-term rental market. Paris properties with a G energy rating – the worst achievable – will disappear from the rental market, with F-rated properties being banned from 2028 and E-rated rentals outlawed from 2034. There is already a lack of rental properties in Paris, with an article in the Financial Times detailing one renter’s experience: 340 applications for a single rental listing, with just 10 chosen to view the property.
Average Monthly Rents in Paris
October has been a month of two halves in the Paris rental market. Two of the property types that Klippa Relocation tracks have risen in value, while two have fallen. A three-bedroom property in Paris’s centre has climbed from €2,760.88 pcm to €2,858.04 pcm, while it’s now more expensive to rent a three-bedroom property in the city’s suburbs, up from €1,875.88 pcm to €1,896.57 pcm. Smaller Paris properties have seen a fall in rental values, but the savings are minimal. A one-bedroom city centre apartment is down from €1,284.08 pcm to €1,278.09 pcm, while a one-bedroom apartment in the Paris suburbs has dropped from €950.95 pcm to €944.09 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 October 2022