September is a month that will be remembered for currency turmoil, with a weakening euro, a catastrophic pound, and rates – both interest and mortgage – affecting finances and the rental market. Rents are getting cheaper for some and more expensive for others, depending on which currency you are using. Klippa takes an overview of the lettings landscape in London, Amsterdam, and Paris.
London Rental Market Latest
Although it’s a different month, it’s the same story in the London rental market. There remains fierce competition for rental properties, with the supply and demand imbalance laid bare by estate agent, Chestertons. It says between July 2021 and July 2022, the number of rental homes on the market dropped by 38%, while its agents recorded a 60% increase in renters looking for homes in the same period. Even the luxury end of London’s rental market is in high demand, with agent Savills reporting that prime central London rents have risen at their strongest rate in more than 20 years over the past 12 months, with an annual increase of 13.5%. We expect London’s rental market to remain ultra-competitive, especially in the wake of the post-mini-budget market turmoil.
Average Monthly Rents in London
Pound sterling’s dramatic slide has made it cheaper for international relocators to rent in London this September, with those using US dollars, the euro and the UAE dirham benefitting. A one-bedroom apartment in London’s city centre is €73.99 a month cheaper in September, with a new per calendar month (pcm) rent of €2,079.99. Looking in London’s suburbs, a one-bedroom apartment has dropped to €1,506.47 pcm from €1,558.45 pcm. When it comes to larger properties, three-bedrooms in the city centre are down from €3,940.97 pcm to €3,808.74 pcm, while a three-bedroom apartment outside of London’s heart is €98,40 cheaper per month at €2,496.36 pcm.
Amsterdam Rental Market Latest
Amsterdam is working hard to address the lack of rental homes in the city by taking a harsher stance on vacant properties. In September, it announced a new law that will see landlords who secretly keep their properties empty fined up to €9,000. A government change in regulations should also allow the city to start forcing landlords to rent out vacant homes to tenants at a fairer price, if necessary. The move comes amid growing fears that investment management companies are purposely buying up swathes of Amsterdam, leaving properties deliberately empty to drive rental values up. Figures released by Statistics Netherland in September 2022 substantiate fears about rental costs, with Amsterdam’s rents rising by an average of 3.6% between July 2021 and July 2022.
Average Monthly Rents in Amsterdam
Amsterdam’s rental market is following a similar path to that in Paris, with three property types becoming marginally cheaper to rent in September and one slightly more expensive. A one-bedroom apartment in Amsterdam’s city centre now costs €1,697.11 pcm, down from €1,702.66 pcm. Stay in the city centre and upgrade to a three-bedroom apartment and the rent is €2,815.41 – €6.77 less a month. The price of renting a three-bedroom apartment in Amsterdam’s suburbs has fallen too, dropping from €2,072.28 pcm to €2,056.37 pcm. Only a one-bedroom apartment outside of the city centre is more expensive in September, rising €32.16 to €1,432.14 pcm.
Paris Rental Market Latest
Forecasts show there will be fewer homes available to buy in Paris, and challenging lending conditions – combining to keep more people in rented properties. To illustrate, mortgage rates have almost doubled in France in the space of a few months and lending terms have been tightened. In addition, a weakening euro is fuelling the recurrent trend for Parisian properties to be snapped up by American buyers, with Swiss nationals also noted as being particularly active. Data released in September by Insee – France’s National Institute of Statistics & Economic Studies – reports rents in the Paris agglomeration increased by 0.2% between April and July 2022.
Average Monthly Rents in Paris
Although not as weak as the pound, the euro’s decline may be behind a drop in Paris rental values. It is now cheaper to rent three of the four property types that Klippa tracks. A one-bedroom city centre apartment is down from €1,292.14 pcm to €1,284.08 pcm, with a three-bedroom property in Paris’s centre now €30.69 cheaper than in August, at €2,760.88 pcm. Away from the city centre, the price of a three-bedroom property has dipped by €54.56 per month, now at €1,875.88 pcm. A one-bedroom apartment in the Paris suburbs is the only property to have seen an increase in rental value, costing €950.95 pcm in September, compared to €947.03 pcm in August.
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, 29th September 2022